Hasbro(US:HAS)2024-10-31 20:16PART I. FINANCIAL INFORMATION Item 1. Financial Statements This section presents Hasbro's unaudited interim consolidated financial statements and condensed notes on accounting policies and key financial items Consolidated Balance Sheets This section provides a snapshot of the company's financial position, detailing assets, liabilities, and equity at specific reporting dates | ASSETS (Millions of Dollars) | Sep 29, 2024 | Oct 1, 2023 | Dec 31, 2023 | | :--------------------------- | :----------- | :---------- | :----------- | | Cash and cash equivalents | $696.1 | $185.5 | $545.4 | | Short-term investments | $489.3 | — | — | | Accounts receivable, net | $1,069.2 | $1,102.0 | $1,029.3 | | Inventories | $375.4 | $617.7 | $332.0 | | Total current assets | $3,021.6 | $3,240.1 | $2,323.6 | | Goodwill | $2,278.9 | $3,238.8 | $2,279.2 | | Total assets | $7,229.9 | $8,340.2 | $6,540.9 | | LIABILITIES & EQUITY (Millions of Dollars) | Sep 29, 2024 | Oct 1, 2023 | Dec 31, 2023 | | :--------------------------------------- | :----------- | :---------- | :----------- | | Current portion of long-term debt | $500.0 | $60.0 | $500.0 | | Accounts payable | $420.3 | $371.4 | $340.6 | | Accrued liabilities | $1,132.5 | $985.4 | $1,215.8 | | Total current liabilities | $2,052.8 | $2,024.2 | $2,056.4 | | Long-term debt | $3,462.6 | $3,654.6 | $2,965.8 | | Total liabilities | $5,920.2 | $6,117.0 | $5,453.9 | | Total shareholders' equity | $1,309.7 | $2,223.2 | $1,087.0 | Consolidated Statements of Operations This section details the company's revenues, expenses, and net earnings or losses over specific periods | Metric (Millions of Dollars, except per share) | Three Months Ended Sep 29, 2024 | Three Months Ended Oct 1, 2023 | Nine Months Ended Sep 29, 2024 | Nine Months Ended Oct 1, 2023 | | :--------------------------------------------- | :------------------------------ | :----------------------------- | :----------------------------- | :---------------------------- | | Net revenues | $1,281.3 | $1,503.4 | $3,033.9 | $3,714.4 | | Total costs and expenses | $979.4 | $1,672.9 | $2,403.7 | $4,054.6 | | Operating profit (loss) | $301.9 | $(169.5) | $630.2 | $(340.2) | | Earnings (loss) before income taxes | $290.3 | $(215.0) | $554.2 | $(463.9) | | Net earnings (loss) attributable to Hasbro, Inc.| $223.2 | $(171.1) | $419.9 | $(428.2) | | Basic EPS | $1.60 | $(1.23) | $3.01 | $(3.09) | | Diluted EPS | $1.59 | $(1.23) | $3.00 | $(3.09) | | Cash dividends declared per common share | $0.70 | $0.70 | $1.40 | $2.10 | Consolidated Statements of Comprehensive Earnings (Loss) This section presents the total comprehensive income or loss, including net earnings and other comprehensive income items | Metric (Millions of Dollars) | Three Months Ended Sep 29, 2024 | Three Months Ended Oct 1, 2023 | Nine Months Ended Sep 29, 2024 | Nine Months Ended Oct 1, 2023 | | :--------------------------- | :------------------------------ | :----------------------------- | :----------------------------- | :---------------------------- | | Net earnings (loss) | $223.3 | $(170.4) | $420.9 | $(427.0) | | Total other comprehensive (loss) earnings, net of tax | $(5.6) | $5.1 | $(26.3) | $46.5 | | Total comprehensive earnings (loss) attributable to Hasbro, Inc. | $217.6 | $(166.0) | $393.6 | $(381.7) | Consolidated Statements of Cash Flows This section outlines the cash inflows and outflows from operating, investing, and financing activities | Cash Flow Activity (Millions of Dollars) | Nine Months Ended Sep 29, 2024 | Nine Months Ended Oct 1, 2023 | | :--------------------------------------- | :----------------------------- | :---------------------------- | | Net cash provided by operating activities| $587.6 | $334.9 | | Net cash utilized by investing activities| $(635.4) | $(162.6) | | Net cash provided by (utilized by) financing activities | $190.8 | $(418.0) | | Net increase (decrease) in cash, cash equivalents and restricted cash | $150.7 | $(257.2) | | Cash, cash equivalents and restricted cash at end of period | $696.1 | $185.5 | Consolidated Statements of Shareholders' Equity This section details changes in the company's equity accounts, including common stock, retained earnings, and treasury stock | Shareholders' Equity (Millions of Dollars) | Dec 31, 2023 | Sep 29, 2024 | | :--------------------------------------- | :----------- | :----------- | | Common Stock | $110.1 | $110.1 | | Additional Paid-in Capital | $2,590.6 | $2,609.5 | | Retained Earnings | $2,188.4 | $2,408.2 | | Accumulated Other Comprehensive Loss | $(201.5) | $(227.8) | | Treasury Stock | $(3,625.7) | $(3,612.8) |\n| Noncontrolling Interests | $25.1 | $22.5 | | Total Shareholders' Equity | $1,087.0 | $1,309.7 | | Shareholders' Equity (Millions of Dollars) | Dec 25, 2022 | Oct 1, 2023 | | :--------------------------------------- | :----------- | :---------- | | Common Stock | $110.1 | $110.1 | | Additional Paid-in Capital | $2,540.6 | $2,574.1 | | Retained Earnings | $4,071.4 | $3,348.3 | | Accumulated Other Comprehensive Loss | $(254.9) | $(208.4) | | Treasury Stock | $(3,634.4) | $(3,626.3) |\n| Noncontrolling Interests | $29.1 | $25.4 | | Total Shareholders' Equity | $2,861.9 | $2,223.2| Condensed Notes to Consolidated Financial Statements This section provides detailed explanations and additional information supporting the consolidated financial statements Basis of Presentation This section outlines the accounting principles and conventions used in preparing the financial statements - The Company corrected prior period errors during the nine months ended September 29, 2024, including an $18.1 million benefit related to stock compensation expense reversal, a $31.1 million expense for historical environmental exposures, and a $26.7 million benefit from an over-accrual of vendor commitment liabilities, none of which were considered material30 - The Company is assessing the impact of recently issued accounting pronouncements: ASU 2023-07 (Segment Reporting) and ASU 2023-09 (Income Taxes), with expected adoption for fiscal years beginning after December 15, 2023, and December 15, 2024, respectively3234 Revenue Recognition This section describes the company's policies and methods for recognizing revenue from various sources - Contract assets increased to **$