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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 September 26, 2021
or
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 classTrading Symbol(s)Name of each exchange on which registered
Common Stock, $0.50 par value per shareHASThe 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 September 26, 2021 was 137,946,906.



PART I. FINANCIAL INFORMATION
Item 1.    Financial Statements.
HASBRO, INC. AND SUBSIDIARIES
Consolidated Balance Sheets
(Millions of Dollars Except Share Data)
(Unaudited)
September 26,
2021
September 27,
2020
December 27,
2020
ASSETS
Current assets
Cash and cash equivalents including restricted cash of $94.9 million, $71.2 million and $73.2 million
$1,181.2 $1,132.4 $1,449.7 
Accounts receivable, less allowance for doubtful accounts of $30.4 million, $23.7 million and $28.1 million
1,476.6 1,438.4 1,391.7 
Inventories
544.1 540.0 395.6 
Prepaid expenses and other current assets
528.5 648.2 609.6 
Total current assets
3,730.4 3,759.0 3,846.6 
Property, plant and equipment, less accumulated depreciation of $607.6 million, $546.8 million and $553.0 million
441.9 477.2 489.0 
Other assets
Goodwill
3,420.2 3,644.1 3,691.7 
Other intangible assets, net of accumulated amortization of $1,027.4 million, $885.8 million and $964.6 million
1,209.5 1,546.8 1,530.8 
Other
1,428.4 1,276.1 1,260.2 
Total other assets
6,058.1 6,467.0 6,482.7 
Total assets
$10,230.4 $10,703.2 $10,818.3 
LIABILITIES, NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY
Current liabilities
Short-term borrowings
$0.9 $10.0 $6.6 
Current portion of long-term debt
187.6 369.3 432.6 
Accounts payable
598.2 466.2 425.5 
Accrued liabilities
1,663.7 1,470.1 1,538.6 
Total current liabilities
2,450.4 2,315.6 2,403.3 
Long-term debt
3,977.4 4,777.8 4,660.0 
Other liabilities
722.5 778.5 793.9 
Total liabilities
$7,150.3 $7,871.9 $7,857.2 
Redeemable noncontrolling interests
22.9 22.9 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 September 26, 2021, September 27, 2020, and December 27, 2020
110.1 110.1 110.1 
Additional paid-in capital
2,388.9 2,311.4 2,329.1 
Retained earnings
4,269.6 4,192.4 4,204.2 
Accumulated other comprehensive loss
(208.6)(280.3)(195.0)
Treasury stock, at cost; 82,359,425 shares at September 26, 2021; 83,256,622 shares at September 27, 2020; and 82,979,403 shares at December 27, 2020
(3,541.0)(3,559.9)(3,551.7)
Noncontrolling interests
38.2 34.7 40.0 
Total shareholders' equity
3,057.2 2,808.4 2,936.7 
Total liabilities, noncontrolling interests and shareholders' equity
$10,230.4 $10,703.2 $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 EndedNine Months Ended
September 26,
2021
September 27,
2020
September 26,
2021
September 27,
2020
Net revenues$1,970.0 $1,776.6 $4,407.0 $3,742.5 
Costs and expenses:
Cost of sales609.5 610.1 1,244.4 1,126.0 
Program cost amortization187.9 85.4 396.1 268.2 
Royalties171.8 176.9 392.2 387.1 
Product development80.1 62.7 229.1 174.9 
Advertising163.3 137.4 356.6 311.4 
Amortization of intangibles27.7 36.2 90.3 107.7 
Loss on disposal of business  101.8  
Selling, distribution and administration361.8 325.4 1,004.7 885.7 
Acquisition and related costs 5.9  166.0 
Total costs and expenses1,602.1 1,440.0 3,815.2 3,427.0 
Operating profit367.9 336.6 591.8 315.5 
Non-operating expense (income):
Interest expense43.3 49.4 137.3 153.7 
Interest income(1.8)(0.7)(4.2)(6.3)
Other income (expense), net3.0 (11.3)(35.3)(15.4)
Total non-operating expense, net44.5 37.4 97.8 132.0 
Earnings before income taxes323.4 299.2 494.0 183.5 
Income tax expense68.5 79.2 143.5 64.3 
Net earnings254.9 220.0 350.5 119.2 
Net earnings (loss) attributable to noncontrolling interests1.7 (0.9)4.0 1.9 
Net earnings attributable to Hasbro, Inc.$253.2 $220.9 $346.5 $117.3 
Net earnings per common share:
Basic$1.83 $1.61 $2.51 $0.86 
Diluted$1.83 $1.61 $2.51 $0.85 
Cash dividends declared per common share$0.68 $0.68 $2.04 $2.04 
See accompanying condensed notes to consolidated financial statements.



HASBRO, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Earnings
(Millions of Dollars)
(Unaudited)
Quarter EndedNine Months Ended
September 26,
2021
September 27,
2020
September 26,
2021
September 27,
2020
Net earnings$254.9 $220.0 $350.5 $119.2 
Other comprehensive earnings:
Foreign currency translation adjustments, net of tax
(31.4)40.8 (23.6)(98.1)
Unrealized holding (gains) losses on available-for-sale securities, net of tax(0.3)(0.8)(0.1)1.3 
Net gains (losses) on cash flow hedging activities, net of tax5.2 (5.7)7.8 15.7 
Reclassifications to earnings, net of tax:
Net losses (gains) on cash flow hedging activities1.1 (6.8)1.7 (15.8)
Amortization of unrecognized pension and postretirement amounts
0.2 0.3 0.6 0.8 
Total other comprehensive (loss) earnings, net of tax$(25.1)$27.8 $(13.6)$(96.1)
Total comprehensive earnings (loss) attributable to noncontrolling interests1.7 (0.9)4.0 1.9 
Total comprehensive earnings attributable to Hasbro, Inc.$228.1 $248.7 $332.9 $21.2 
                                                                                        
See accompanying condensed notes to consolidated financial statements.



HASBRO, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Millions of Dollars)
(Unaudited)
Nine Months Ended
September 26,
2021
September 27,
2020
Cash flows from operating activities:
Net earnings$350.5 $119.2 
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation of plant and equipment116.2 94.2 
Amortization of intangibles90.3 107.7 
Asset impairments 40.9 
Loss on disposal of business101.8  
Program cost amortization396.1 268.2 
Deferred income taxes47.9 12.5 
Stock-based compensation56.2 40.0 
Other non-cash items5.7 (1.7)
Change in operating assets and liabilities net of acquired balances:
(Increase) decrease in accounts receivable(83.8)165.6 
Increase in inventories(159.4)(96.9)
Decrease (increase) in prepaid expenses and other current assets56.7 (10.0)
Program spend, net(526.3)(294.6)
Increase in accounts payable and accrued liabilities310.5 19.0 
Change in net deemed repatriation tax(18.4)(18.3)
Other(58.4)48.5 
Net cash provided by operating activities685.6 494.3 
Cash flows from investing activities:
Additions to property, plant and equipment(98.1)(92.1)
Acquisitions, net of cash acquired (4,403.9)
Proceeds from sale of business, net of cash379.2  
Other(3.6)24.3 
Net cash provided (utilized) by investing activities277.5 (4,471.7)
Cash flows from financing activities:
Proceeds from borrowings with maturity greater than three months127.6 1,036.0 
Repayments of borrowings with maturity greater than three months(1,062.1)(147.3)
Net repayments of other short-term borrowings(6.2)(0.3)
Stock-based compensation transactions24.6 1.8 
Dividends paid(280.7)(279.4)
Payments related to tax withholding for share-based compensation(10.8)(5.9)
Debt extinguishment costs(9.1) 
Redemption of equity instruments (47.4)
Other(6.8)(7.0)
Net cash (utilized) provided by financing activities(1,223.5)550.5 
Effect of exchange rate changes on cash(8.1)(21.1)
Net decrease in cash, cash equivalents and restricted cash(268.5)(3,448.0)
Cash, cash equivalents and restricted cash at beginning of year1,449.7 4,580.4 
Cash, cash equivalents and restricted cash at end of period$1,181.2 $1,132.4 
Supplemental information
Cash paid during the period for:
Interest$123.7 $123.6 
Income taxes$124.1 $66.0 
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 September 26, 2021
Common
Stock
Additional
Paid-in Capital
Retained
Earnings
Accumulated Other Comprehensive LossTreasury
Stock
Noncontrolling InterestsTotal
Shareholders'
Equity
Redeemable Noncontrolling Interests
Balance, June 27, 2021$110.1 2,361.2 4,110.3 (183.5)(3,547.6)39.9 $2,890.4 $24.5 
Net earnings attributable to Hasbro, Inc.— — 253.2 — — — 253.2 — 
Net earnings attributable to noncontrolling interests— — — — — 0.4 0.4 1.3 
Other comprehensive earnings— — — (25.1)— — (25.1)— 
Stock-based compensation transactions— 7.4 — — 6.6 — 14.0 — 
Stock-based compensation expense— 19.1 — — — — 19.1 — 
Dividends declared— — (93.9)— — — (93.9)— 
Distributions paid to noncontrolling owners and other foreign exchange— 1.2 — — — (2.1)(0.9)(2.9)
Balance, September 26, 2021$110.1 2,388.9 4,269.6 (208.6)(3,541.0)38.2 $3,057.2 $22.9 
Three Months Ended September 27, 2020
Common
Stock
Additional
Paid-in Capital
Retained
Earnings
Accumulated Other
Comprehensive Loss
Treasury
Stock
Noncontrolling InterestsTotal
Shareholders'
Equity
Redeemable Noncontrolling Interests
Balance, June 28, 2020$110.1 2,297.3 4,064.7 (308.1)(3,560.0)38.1 $2,642.1 $24.1 
Noncontrolling interests related to acquisition of Entertainment One Ltd.— — — — — — — — 
Net earnings attributable to Hasbro, Inc.— — 220.9 — — — 220.9 — 
Net earnings (loss) attributable to noncontrolling interests— — — — — (0.9)(0.9)— 
Other comprehensive earnings— — — 27.8 — — 27.8 — 
Stock-based compensation transactions— (0.3)— — 0.1 — (0.3)— 
Buyout of noncontrolling interest— 0.6 — — — — 0.6 — 
Stock-based compensation expense— 13.9 — — — — 13.9 — 
Dividends declared— — (93.2)— — — (93.2)— 
Distributions paid to noncontrolling owners and other foreign exchange— — — — — (2.6)(2.6)(1.2)
Balance, September 27, 2020$110.1 2,311.4 4,192.4 (280.3)(3,559.9)34.7 $2,808.4 $22.9 



HASBRO, INC. AND SUBSIDIARIES
Consolidated Statements of Shareholders' Equity and Redeemable Noncontrolling Interests
(Millions of Dollars)
(Unaudited)
Nine Months Ended September 26, 2021
Common
Stock
Additional
Paid-in Capital
Retained
Earnings
Accumulated Other
Comprehensive Loss
Treasury
Stock
Noncontrolling InterestsTotal
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.— — 346.5 — — — 346.5 
Net earnings attributable to noncontrolling interests— — — — — 2.4 2.4 1.6 
Other comprehensive earnings— — — (13.6)— — (13.6)— 
Stock-based compensation transactions— 4.2 — — 9.6 — 13.8 — 
Stock-based compensation expense— 55.1 — — 1.1 — 56.2 — 
Dividends declared— — (281.1)— — — (281.1)— 
Distributions paid to noncontrolling owners and other foreign exchange— 0.5 — — — (4.2)(3.7)(3.1)
Balance, September 26, 2021$110.1 2,388.9 4,269.6 (208.6)(3,541.0)38.2 $3,057.2 $22.9 
 Nine Months Ended September 27, 2020
Common
Stock
Additional
Paid-in Capital
Retained
Earnings
Accumulated Other
Comprehensive Loss
Treasury
Stock
Noncontrolling InterestsTotal
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 attributable to Hasbro, Inc.— — 117.3 — — — 117.3 — 
Net earnings (loss) attributable to noncontrolling interests— — — — — 2.12.1 (0.1)
Buyout of noncontrolling interest— 0.6 — — — — 0.6 — 
Other comprehensive loss— — — (96.1)— — (96.1)— 
Stock-based compensation transactions— (4.6)— — 0.5 — (4.1)— 
Stock-based compensation expense— 39.7 — — 0.3 — 40.0 — 
Dividends declared— — (279.5)— — — (279.5)— 
Distributions paid to noncontrolling owners and other foreign exchange— — — — — (5.9)(5.9)(3.2)
Balance, September 27, 2020$110.1 2,311.4 4,192.4 (280.3)(3,559.9)34.7 $2,808.4 $22.9 
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 September 26, 2021 and September 27, 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 September 26, 2021 and September 27, 2020 were each 13-week periods. The nine-month periods ended September 26, 2021 and September 27, 2020 were each 39-week periods.
The results of operations for the quarter ended September 26, 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 $26.7 million from a legal settlement related to a dispute associated with historical Entertainment One Ltd. ("eOne"). 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 Annual Report on Form 10-K for the year ended December 27, 2020 ("2020 Form 10-K").

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 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


Condensed Notes to Consolidated Financial Statements
(Millions of Dollars and Shares Except Per Share Data)
the effect of enacted changes in tax laws or rates in interim periods. ASU 2019-12 is effective for fiscal years 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.
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 September 26, 2021, September 27, 2020 and December 27, 2020 the Company had the following contract assets and liabilities in its consolidated balance sheets:
September 26, 2021September 27, 2020December 27, 2020
Assets
     Contract assets - current$263.3 $271.8 $284.4 
     Contract assets - long term108.1 84.9 77.0 
           Total$371.4 $356.7 $361.4 
Liabilities
     Contract liabilities - current$147.0 $147.6 $161.0 
     Contract liabilities - long term9.7 17.9 18.2 
          Total $156.7 $165.5 $179.2 

For the nine months ended September 26, 2021, the Company collected $35.0 million of the contract assets and recognized $88.9 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
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 September 26, 2021, unrecognized revenue attributable to unsatisfied performance obligations expected to be recognized in the future were $456.0 million. Of this amount, we expect to recognize $195.5 million in the remainder of 2021, $252.7 million in 2022, $4.3 million in 2023 and $3.5 million in 2024. These amounts include only fixed considerations.
Disaggregation of revenues
The Company disaggregates its revenues from contracts with customers by reportable segment: Consumer Products, Entertainment, and Wizards of the Coast and 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 Other. Finally, the Company disaggregates its revenues by brand portfolio into five brand categories: Franchise Brands, Partner Brands, Hasbro Gaming, Emerging Brands, and TV/Film/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 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 acquiredAmortization PeriodFair Value
Established brands10 years$615.0 
Trade names15 years100.0 
Artist relationships14 years100.0 
Music catalogs12 years120.0 
Other8 years121.0 
Total intangible assets acquired11 years$1,056.0 


Condensed Notes to Consolidated Financial Statements
(Millions of Dollars and Shares Except Per Share Data)
Intangible assets consisted of intellectual property associated with established brands, eOne artist relationships, eOne music catalogs and trademarks and trade names 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 nine months ended September 26, 2021 were $19.7 million and $66.4 million, respectively. For the quarter and nine months ended September 27, 2020, eOne acquired intangible asset amortization expense was $24.7 million and $72.3 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 recorded in the second quarter of 2021 as a result of the sale of the eOne music business, which was completed during the third quarter of 2021.
For the quarter and nine months ended September 27, 2020, the Company incurred $5.9 million and $166.0 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 nine months ended September 27, 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 nine months ended September 27, 2020 consisted of the following:
Acquisition and integration costs of $4.6 million and $104.3 million for the quarter and nine months ended September 27, 2020, respectively, including, for the nine months ended September 27, 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 $1.4 million and $61.7 million for the quarter and nine months ended September 27, 2020, respectively, including severance and retention costs for the quarter and nine months ended September 27, 2020 of $1.4 million and $20.8 million, respectively, as well as $40.9 million in impairment charges for certain definite-lived intangible and production assets for the nine months ended September 27, 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 per share data for the quarters and nine months ended September 26, 2021 and September 27, 2020 were computed as follows:
20212020
QuarterBasicDilutedBasicDiluted
Net earnings attributable to Hasbro, Inc.$253.2 253.2 $220.9 220.9 
Average shares outstanding138.1 138.1 137.3 137.3 
Effect of dilutive securities:
Options and other share-based awards— 0.4 — 0.2 
Equivalent Shares138.1 138.5 137.3 137.5 
Net earnings attributable to Hasbro, Inc. per common share$1.83 1.83 $1.61 1.61 
20212020
Nine MonthsBasicDilutedBasicDiluted
Net earnings attributable to Hasbro, Inc.$346.5 346.5 $117.3 117.3 
Average shares outstanding137.9 137.9 137.2 137.2 
Effect of dilutive securities:
Options and other share-based awards— 0.4 — 0.3 
Equivalent Shares137.9 138.3 137.2 137.5 
Net earnings attributable to Hasbro, Inc. per common share$2.51 2.51 $0.86 0.85 
For the quarter and nine months ended September 26, 2021, options and restricted stock units totaling 2.1 million and 2.2 million respectively, were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive. For the quarter and nine months ended September 27, 2020, options and restricted stock units totaling 2.9 million and 3.0 million, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been anti-dilutive.
(5) Goodwill
During the first quarter of 2021, the Company realigned its financial reporting structure creating the following three principal reportable segments: Consumer Products, Wizards of the Coast and Digital Gaming and Entertainment. In our realignment, some, but not all, of our reporting units were changed. As a result of these changes, the Company reallocated its goodwill among the revised reporting units based on the change in relative fair values of the respective reporting units.
Consumer ProductsWizards of the Coast and Digital Gaming