UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
__________________________
FORM 11-K
(Mark One)
\X\ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2022
or
\ \ TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from _______ to _______
Commission file number 1-6682
__________________________
A. Full title of the plan and the address of the plan, if different from that of the issuer named below:
HASBRO, INC. RETIREMENT SAVINGS PLAN
__________________________
B. Name of the issuer of the securities held pursuant to the plan and the address of its principal executive office:
HASBRO, INC.
1027 Newport Avenue
Pawtucket, RI 02862-1059
REQUIRED INFORMATION
I. FINANCIAL STATEMENTS
The following Plan financial statements and schedule prepared in accordance with the financial reporting requirements of the Employee Retirement Income Security Act of 1974 are filed herewith, as permitted by Item 4 of Form 11-K:
Report of Independent Registered Public Accounting Firm
Statements of Net Assets Available for Plan Benefits as of December 31, 2022 and 2021
Statements of Changes in Net Assets Available for Plan Benefits for the years ended December 31, 2022 and 2021
Notes to Financial Statements
Supplemental Schedule:
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
Other schedules are omitted as the required information is not applicable.
II. EXHIBITS
SIGNATURES
The Plan. Pursuant to the requirements of the Securities Exchange Act of 1934, the Committee appointed by the Board of Directors of Hasbro, Inc. to administer the Plan has duly caused this Annual Report on Form 11-K to be signed on its behalf by the undersigned hereunto duly authorized.
| Hasbro, Inc. Retirement Savings Plan | |||||
| /s/ Gina Goetter | |||||
| Date: June 28, 2023 | Gina Goetter | ||||
| Executive Vice President and Chief Financial Officer | |||||
Report of Independent Registered Public Accounting Firm
To the Plan Participants and Hasbro, Inc., as Plan Administrator
Hasbro, Inc. Retirement Savings Plan
Opinion on the Financial Statements
We have audited the accompanying statements of net assets available for plan benefits of the Hasbro, Inc. Retirement Savings Plan (the Plan) as of December 31, 2022 and 2021, the related statements of changes in net assets available for plan benefits for the years ended December 31, 2022 and 2021, and the related notes (collectively, the financial statements). In our opinion, the financial statements present fairly, in all material respects, the net assets available for plan benefits of the Plan as of December 31, 2022 and 2021, and the changes in net assets available for plan benefits for the years ended December 31, 2022 and 2021, in conformity with U.S. generally accepted accounting principles.
Basis for Opinion
These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits. We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are required to be independent with respect to the Plan 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 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 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 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 financial statements. We believe that our audits provide a reasonable basis for our opinion.
Accompanying Supplemental Information
The Schedule H, line 4i - Schedule of Assets (Held at End of Year) as of December 31, 2022 has been subjected to audit procedures performed in conjunction with the audit of the Plan’s financial statements. The supplemental information is the responsibility of the Plan’s management. Our audit procedures included determining whether the supplemental information reconciles to the financial statements or the underlying accounting and other records, as applicable, and performing procedures to test the completeness and accuracy of the information presented in the supplemental information. In forming our opinion on the supplemental information, we evaluated whether the supplemental information, including its form and content, is presented in conformity with the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. In our opinion, the supplemental information is fairly stated, in all material respects, in relation to the financial statements as a whole.
/s/ KPMG LLP
We have served as the Plan’s auditor since 1986.
Providence, Rhode Island
June 28, 2023
HASBRO, INC. RETIREMENT SAVINGS PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 2022 and 2021
| 2022 | 2021 | ||||||||||
| Assets | |||||||||||
| Cash and cash equivalents (Note 8) | $ | 2,424,474 | $ | 2,624,566 | |||||||
| Investments, at fair value (Note 8) | 722,842,792 | 916,755,094 | |||||||||
| Investments, at contract value | 67,458,077 | 69,304,956 | |||||||||
| Total investments and cash and cash equivalents (Note 3) | 792,725,343 | 988,684,616 | |||||||||
| Receivables: | |||||||||||
| Notes receivable from participants | 4,483,475 | 5,091,878 | |||||||||
| Employer contributions | 9,994,446 | 4,847,782 | |||||||||
| Due from brokers for securities sold | 149,932 | 95,928 | |||||||||
| Total receivables | 14,627,853 | 10,035,588 | |||||||||
| Total assets | 807,353,196 | 998,720,204 | |||||||||
| Liabilities | |||||||||||
| Payables for securities purchased | 187,331 | 95,909 | |||||||||
| Accrued expenses | 134,197 | 163,459 | |||||||||
| Total liabilities | 321,528 | 259,368 | |||||||||
| Net assets available for plan benefits | $ | 807,031,668 | $ | 998,460,836 | |||||||
| See accompanying notes to financial statements. | |||||||||||
HASBRO, INC. RETIREMENT SAVINGS PLAN
Statements of Changes in Net Assets Available for Plan Benefits
Years Ended December 31, 2022 and 2021
| 2022 | 2021 | ||||||||||
| Investment income: | |||||||||||
| Net (depreciation) appreciation in fair value of investments | $ | (189,256,109) | $ | 137,905,680 | |||||||
| Dividends and interest | 4,669,982 | 5,122,090 | |||||||||
| Total investment (loss) income | (184,586,127) | 143,027,770 | |||||||||
| Contributions: | |||||||||||
| Rollovers | 6,368,766 | 4,617,297 | |||||||||
| Participant contributions | 31,167,635 | 27,644,072 | |||||||||
| Employer contributions | 28,908,150 | 21,826,452 | |||||||||
| Total contributions | 66,444,551 | 54,087,821 | |||||||||
| Interest income on notes receivable from participants | 170,508 | 213,032 | |||||||||
| Deductions from net assets attributed to: | |||||||||||
| Termination, withdrawal, and retirement payments directly to participants | 73,185,362 | 49,559,555 | |||||||||
| Administrative expenses | 272,738 | 334,704 | |||||||||
| Total deductions | 73,458,100 | 49,894,259 | |||||||||
| Net (decrease) increase before Plan transfer | (191,429,168) | 147,434,364 | |||||||||
| Net transfer of assets into Plan (Note 1(b)) | — | 3,590,982 | |||||||||
| Net (decrease) increase | (191,429,168) | 151,025,346 | |||||||||
| Net assets available for plan benefits | |||||||||||
| Beginning of year | 998,460,836 | 847,435,490 | |||||||||
| End of year | $ | 807,031,668 | $ | 998,460,836 | |||||||
| See accompanying notes to financial statements. | |||||||||||
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2022 and 2021
(1) Description of Plan
The following brief description of the Hasbro, Inc. Retirement Savings Plan ("the Plan") is provided for general information purposes only. Participants should refer to the Plan document for more complete information.
(a) General
The Plan is a defined contribution plan subject to the provisions of the Employee Retirement Income Security Act of 1974 ("ERISA") and is available to substantially all domestic employees of Hasbro, Inc. and certain subsidiaries (collectively "the Company," "Plan Administrator" or "Plan Sponsor"). Participation in the Plan is voluntary and to be eligible, employees must have attained age 21 and be in a covered job classification.
Fidelity Management Trust Company (“the Trustee”) serves as Trustee and Recordkeeper of the Plan.
(b) Contributions
Eligible employees may contribute up to 75% of their eligible pay, limited to an annual maximum of $20,500 in 2022 and $19,500 in 2021. Contributions may be limited to less than the maximum percentage of eligible pay to enable the Company to meet IRS discrimination regulations. The Company makes a matching contribution of 200% of the first 2% of the participants' eligible pay that they contribute per pay period, plus a 50% match of the next 4% of participants' eligible pay that they contribute per pay period up to a maximum matching contribution of 6% of a participant's eligible pay per pay period.
The Company may also make a discretionary annual contribution after the close of each year, which is targeted at 3% of eligible pay. Discretionary contributions totaling $9,994,446 and $8,847,210 were made for plan years 2022 and 2021, respectively.
All eligible employees who have reached age 50 by the end of the calendar year are permitted to make additional pre-tax deferrals over and above the otherwise applicable limits. These additional deferrals are called "catch-up contributions". Catch-up contributions may be made up to an additional $6,500 in 2022 and 2021.
In 2019, following the Company’s decision to terminate its U.S. defined benefit pension plan, the Hasbro, Inc. Pension Plan (“U.S. Pension Plan”), the Company settled all remaining U.S. Pension Plan benefits. After the settlement of the benefit obligations and payment of expenses, the Company had excess assets in its U.S. Pension Plan of approximately $20,234,000. The Company elected to utilize the remaining surplus for the Company's future discretionary annual contributions under the Hasbro, Inc. Retirement Savings Plan. In February 2020, the Company transferred $19,500,000 into the Plan. Of the total amount transferred, $7,669,007 was utilized to settle the outstanding receivable for the 2019 annual discretionary contribution in 2020, resulting in a net transfer of $11,830,993. The Company applied $8,369,166 to satisfy the 2020 annual discretionary contribution which was credited to participant accounts in March 2021. The remaining amount of $3,999,428 was applied to the Company’s 2021 annual discretionary contribution, which was credited to participant accounts in March 2022. In addition, during January 2021, assets of $3,590,982 were transferred into the Plan, which represented the remaining retirement savings plan assets associated with the Company’s wholly owned subsidiary, Backflip Studios, LLC, which was closed in 2019.
(c) Vesting
All participants currently employed by the Company own, or are vested in, 100% of both employee contributions and the Company's matching contributions to the Plan. Participants become 100% vested in the Company's discretionary annual contribution after three years of vesting service. Participants earn one year of vesting service for each calendar year in which the participant has worked at least 1,000 hours.
1
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2022 and 2021
(d) Forfeitures
The unvested portion of a terminated participant's account is forfeited and used to reduce future employer contributions. Forfeitures were $160,326 and $159,235 in 2022 and 2021, respectively.
(e) Payment of Benefits
Payments to participants may be paid upon retirement, disability, or termination of employment. The account balance will be paid to a beneficiary upon death of the participant. Participants in the Plan have the option of receiving their benefit payments either in a lump sum or in periodic installments. Participants, except for terminated participants, may also make in-service withdrawals from their Pre-Tax Savings Contribution Account in the event of a demonstrated severe financial hardship as defined by the IRS Safe Harbor rules. Participants who have reached age 59 ½ may make in-service withdrawals from their vested accounts excluding the annual company contribution and the transition contribution sources in the Plan for any reason. Distributions made to individuals who have not attained the age of 59 ½ may be subject to an IRS imposed 10% early distribution penalty.
(f) Notes Receivable from Participants
The maximum loan available to each participant is the lesser of (1) $50,000 reduced by the highest outstanding loan balance due from the participant during the preceding twelve months, or (2) 50% of the participant's vested account balance, reduced by the current outstanding loan balance due from the participant. The minimum loan amount available to participants is $500. Each loan shall bear a fixed interest rate equal to the prime interest rate as published in the Wall Street Journal on the last day of the previous month. Repayment of the loan must be made over a period not to exceed five years, unless it is for the purchase of a primary residence, in which case the loan period cannot exceed ten years.
(g) Reclassification
Certain reclassifications have been made to prior period amounts to conform to the current period financial statement presentation. The Company reclassified interest income on notes receivables from participants in the prior year’s Statement of Changes in Net Assets Available for Plan Benefits in the amount of $213,032 for the year ended December 31, 2021.
(2) Summary of Accounting Policies
(a) Basis of Accounting
The preparation of financial statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires the Plan Administrator to make estimates and assumptions that affect the reported amounts in the financial statements and accompanying notes. Actual results could differ from those estimates. The accompanying financial statements are presented on the accrual basis of accounting. Benefits payable at year end are not accrued for as they are considered to be a component of the net assets available for plan benefits.
(b) Investments
Investments are stated at fair value with the exception of the Plan’s fully benefit-responsive investment contracts which are stated at contract value. See Note 8 for a discussion of the methods used to determine the fair value of investments held by the Plan.
Security transactions received prior to 4:00 pm Eastern time by the Trustee are recognized on that business day. Transactions received after 4:00 pm Eastern time are valued as of the next business day.
Interest income is recorded on the accrual basis and dividend income is recorded on the ex-dividend date.
2
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2022 and 2021
Net appreciation (depreciation) in the fair value of investments includes both realized and unrealized gains and losses.
(c) Notes Receivable from Participants
Notes receivable from participants are recorded at the outstanding principal balance plus accrued interest.
(d) Contributions
Contributions from employees are recorded by the Plan when deducted from employees' wages. The Company's matching contributions are accrued at the time the employee's contributions are deducted. For the years ended December 31, 2022 and 2021, employer and employee contributions for the last pay period of the year were paid to the Plan prior to the Plan's year end. The Company’s discretionary annual contribution for 2022 was paid to the Plan subsequent to the end of the Plan year and was recorded as employer contributions receivable on the Statements of Net Assets Available for Plan Benefits at December 31, 2022. The Company’s discretionary annual contribution for 2021 consisted of the remaining excess pension assets from the 2020 transfer as well as an additional cash contribution paid to the Plan subsequent to the end of the Plan year, recorded as employer contributions receivable on the Statement of Net Assets Available for Plan Benefits at December 31, 2021.
(e) Payments of Benefits
Benefits are recorded when paid.
(f) Administrative Expenses
The Plan bears all costs and general expenses incurred with regard to investment consulting, audit, legal and communication fees, other professional fees, independent fund managers and the purchase and sale of investments. These expenses are paid by the Plan participants equally. Other costs of administration are paid for by the Plan Administrator.
(3) Investment Information
Participants may elect to have their accounts invested in one or more of the investment funds offered by the Plan. Investment options are selected by the Plan’s Investment Committee (which is comprised of members of management, established by the Board to monitor the Plan’s investment options and evaluate performance). At December 31, 2022, investment funds offered by the Plan included the following nationally traded mutual funds: the MFS Institutional International Equity Fund and the Dodge & Cox Stock Fund. Investment funds offered by the Plan at December 31, 2022 also included the following commingled funds: BTC ACWI ex-US IMI Index Fund, BTC Russell 2500 Index Fund, BTC Equity Index Fund, BTC Lifepath Retirement, BTC Lifepath 2025, BTC Lifepath 2030, BTC Lifepath 2035, BTC Lifepath 2040, BTC Lifepath 2045, BTC Lifepath 2050, BTC Lifepath 2055, BTC Lifepath 2060, BTC Lifepath 2065, Eaton Vance Collective Investment Trust High Yield Fund, Loomis Core Plus Fixed Income Fund and Fidelity Growth Company Pool.
Participants can elect to invest up to 25% of their contributions in the Hasbro Stock Fund, which is a unitized stock fund that invests in the stock of Hasbro, Inc. and other short-term investments designed to allow participants to buy and sell without the usual trade settlement period for individual stock transactions. Ownership is measured in units of the fund instead of shares of common stock. Participants cannot elect to reallocate their investment funds if that would result in greater than 25% of their account invested in the Hasbro Stock Fund. The fair value of the cash and investments of the Hasbro Stock Fund was $14,294,146 and $23,376,244 as of December 31, 2022 and 2021, respectively.
3
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2022 and 2021
The Plan invests in fully benefit-responsive synthetic guaranteed investment contracts ("synthetic GICs") as part of offering the JP Morgan Stable Asset Fund investment option to participants. Participant contributions to this fund are primarily used to purchase units of commingled funds, which are invested in a high-quality fixed income portfolio. The synthetic GICs are comprised of wrapper contracts and underlying investments.
The Company enters into wrapper contracts with insurance companies which provide a guarantee with respect to the availability of funds to make distributions from this investment option. These contracts are carried at contract value in the participants' accounts. The issuer of the wrapper contracts is contractually obligated to repay the principal, as well as a specified interest rate that is set on a quarterly basis. There are no reserves against contract value for credit risk of the contract issuer or otherwise.
The JP Morgan Stable Asset Fund and the wrapper contracts purchased are designed to pay all participants at contract value. However, certain events limit the ability of the Plan to transact at contract value. These events include but are not limited to premature termination of the contracts by the Plan or Plan termination. The Plan Sponsor has not expressed any intention to take either of these actions.
The synthetic guaranteed investment contracts in the JP Morgan Stable Asset Fund as of December 31, 2022 and 2021 are summarized below:
| Major Credit Rating | Investments at Contract Value | ||||||||||
| December 31, 2022 | |||||||||||
| Transamerica Premier Life Insurance Company | A+ | $ | 16,858,735 | ||||||||
| Pacific Life Insurance Company | AA- | 16,863,424 | |||||||||
| Voya Insurance and Annuity Co. | A+ | 16,869,305 | |||||||||
| Metropolitan Life Insurance Company | AA- | 16,866,613 | |||||||||
| All Contracts | $ | 67,458,077 | |||||||||
| December 31, 2021 | |||||||||||
| Transamerica Premier Life Insurance Company | A+ | $ | 17,323,597 | ||||||||
| Lincoln National Life Insurance | AA- | 17,324,818 | |||||||||
| Voya Insurance and Annuity Co. | A+ | 17,330,639 | |||||||||
| Metropolitan Life Insurance Company | AA- | 17,325,902 | |||||||||
| All Contracts | $ | 69,304,956 | |||||||||
Participant accounts in the JP Morgan Stable Asset Fund are credited with interest at a fixed rate that is based on an agreed-upon formula as defined in the contracts. The rate typically resets quarterly; however, the rate may reset more frequently under certain circumstances. The primary variables which could impact the future crediting rates include (1) the amount and timing of participant contributions, (2) transfers and withdrawals into/out of the contract, (3) the current yield of the assets underlying the contract, (4) the duration of the assets underlying the contract and (5) the existing difference between fair value of the securities and the contract value of the assets within the insurance contract. The crediting rate of security-backed contracts will track current market yields on a trailing basis. The rate reset allows the contract value to converge with the fair value of the underlying portfolio over time, assuming the portfolio continues to earn the current yield for a period of time equal to the current portfolio duration.
4
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2022 and 2021
(4) Related Party Transactions
Certain Plan investments are shares of mutual funds managed by Fidelity Management and Research Company, an affiliate of the Trustee and Recordkeeper, and, therefore, qualify as party-in-interest transactions. The Plan had 3,560,541 and 3,854,636 units of the Fidelity Growth Company Pool commingled fund valued at $125,544,675 and $202,676,759, respectively, as of December 31, 2022 and 2021. The Plan also had cash and cash equivalents in the Fidelity Short-term Investment Fund of $2,424,474 and $2,624,566, respectively, as of December 31, 2022 and 2021. Additionally, the Plan holds investments in shares of Hasbro, Inc. common stock, the Plan Sponsor. The Plan had 223,146 and 218,159 shares of Hasbro, Inc. common stock valued at $13,614,137 and $22,204,223, respectively, as of December 31, 2022 and 2021. These transactions qualify as exempt party-in-interest transactions.
(5) Plan Termination
Upon termination of the Plan and trust, each participant thereby affected shall be entitled to receive the full value of the participant’s vested account balance in accordance with the terms of the Plan as of the final valuation date. The Trustee shall make payments of such amounts as directed by the Plan Administrator.
Although the Company has not expressed any intent to do so, it reserves the right to terminate the Plan at any time subject to ERISA provisions.
(6) Risks and Uncertainties
The Plan provides for investments in various funds, which invest in equity and debt securities and other investments. Such investments are exposed to risks and uncertainties, such as interest rate risk, credit risk, economic and political risks, regulatory changes, and foreign currency risk. In addition, participants may elect to invest up to 25% of their contributions in the Hasbro Stock Fund. The underlying performance of this fund is dependent upon the performance of the Company and the market's evaluation of such performance. The Plan's exposure to a concentration of credit risk is subject to the Plan's investment funds selected by participants. These risks and uncertainties could impact participants' account balances and the amounts reported in the financial statements.
(7) Federal Income Taxes
The Internal Revenue Service issued a determination letter on July 19, 2016, stating that the Plan and its underlying trust are designed in accordance with applicable sections of the Internal Revenue Code (IRC). Although the Plan has been amended since the effective date of the determination letter, the Plan administrator believes that the Plan is designed and is currently being operated in compliance with the applicable requirements of the IRC and therefore believes that the Plan is qualified and the related trust is tax-exempt. Therefore, no provision for income taxes is included in the Plan’s financial statements.
U.S. GAAP requires Plan management to evaluate tax positions taken by the Plan and recognize a tax liability (or asset) if the Plan has taken an uncertain position that more likely than not would not be sustained upon examination by the Internal Revenue Service. The Plan Administrator has analyzed the tax positions taken by the Plan, and has concluded that as of December 31, 2022 and 2021, there are no uncertain positions taken or expected to be taken that would require recognition of a liability (or asset) or disclosure in the financial statements. The Plan is subject to routine audits by taxing jurisdictions; however, there are currently no audits for any tax periods in progress. The Plan Administrator believes it is no longer subject to income tax examinations for years prior to 2019.
5
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2022 and 2021
(8) Fair Value Measurements
The Plan measures certain assets at fair value. The fair value hierarchy consists of three levels: Level 1 fair values are valuations 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 valuations 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; and Level 3 fair values are valuations 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.
The Plan had the following assets measured at fair value in its Statements of Net Assets Available for Plan Benefits:
| Fair Value Measurements Using: | |||||||||||||||||||||||
| Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||||||||||
| December 31, 2022 | |||||||||||||||||||||||
| Cash and Cash Equivalents | $ | 2,424,474 | 2,424,474 | — | — | ||||||||||||||||||
| Hasbro, Inc. Common Stock | 13,614,137 | 13,614,137 | — | — | |||||||||||||||||||
| Mutual Funds | 89,258,483 | 89,258,483 | — | — | |||||||||||||||||||
| Commingled Funds | 619,970,172 | 619,970,172 | — | — | |||||||||||||||||||
| Total Investments and Cash | $ | 725,267,266 | 725,267,266 | — | — | ||||||||||||||||||
| December 31, 2021 | |||||||||||||||||||||||
| Cash and Cash Equivalents | $ | 2,624,566 | 2,624,566 | — | — | ||||||||||||||||||
| Hasbro, Inc. Common Stock | 22,204,223 | 22,204,223 | — | — | |||||||||||||||||||
| Mutual Funds | 100,611,223 | 100,611,223 | — | — | |||||||||||||||||||
| Commingled Funds | 793,939,648 | 793,939,648 | — | — | |||||||||||||||||||
| Total Investments and Cash | $ | 919,379,660 | 919,379,660 | — | — | ||||||||||||||||||
Cash and cash equivalents are held in money market funds valued using published quotes.
Hasbro, Inc. Common Stock: Valued at the composite closing price reported on The Nasdaq Global Select Market.
Mutual Funds and Commingled Funds are valued at the quoted market price as reported by the fund and are redeemable on a daily basis. The quoted market prices represent the NAV of shares held by the plan at year-end.
The availability of observable market data is monitored to assess the appropriate classification of the Plan’s investments within the fair value hierarchy. For the years ended December 31, 2022 and 2021, there were no changes in the fair value hierarchy methodology and no transfers of assets between levels within the fair value hierarchy.
(9) Subsequent Events
Subsequent events have been evaluated through June 28, 2023, the date the financial statements were available to be issued.
6
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2022 and 2021
(10) Reconciliation to Form 5500
The accompanying financial statements are presented on the accrual basis of accounting and include certain accrued administrative expenses and employer contributions receivable which are not accrued on the Form 5500.
The following is a reconciliation of net assets available for plan benefits per the financial statements to the Form 5500 at December 31, 2022 and 2021.
| 2022 | 2021 | |||||||||||||
| Per financial statements | $ | 807,031,668 | $ | 998,460,836 | ||||||||||
| Employer contributions receivable | (9,994,446) | (4,847,782) | ||||||||||||
| Accrued administrative expenses | 81,355 | 81,355 | ||||||||||||
| Adjustment from contract value to fair value for fully-benefit responsive investment contracts | (4,624,998) | 882,151 | ||||||||||||
| Per Form 5500 | $ | 792,493,579 | $ | 994,576,560 | ||||||||||
The following is a reconciliation of the net (decrease) increase in net assets available for plan benefits per the financial statements to the Form 5500 for the years ended December 31, 2022 and 2021.
| 2022 | 2021 | |||||||||||||
| Per Financial Statements | $ | (191,429,168) | $ | 151,025,346 | ||||||||||
| Prior year employer contributions receivable | 4,847,782 | — | ||||||||||||
| Prior year accrued administrative expenses | (81,355) | (104,733) | ||||||||||||
| Prior year adjustment from contract value to fair value for fully-benefit responsive contracts | (882,151) | (2,778,884) | ||||||||||||
| Current year employer contributions receivable | (9,994,446) | (4,847,782) | ||||||||||||
| Current year accrued administrative expenses | 81,355 | 81,355 | ||||||||||||
| Current year adjustment from contract value to fair value for fully-benefit responsive contracts | (4,624,998) | 882,151 | ||||||||||||
| Per Form 5500 | $ | (202,082,981) | $ | 144,257,453 | ||||||||||
7
HASBRO, INC. RETIREMENT SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
December 31, 2022
| (a) | (b) | (c) | (e) | |||||||||||||||||
| Identity of issuer, borrower, lessor or similar party | Description of investment including maturity date, rate of interest, collateral, par or maturity value | Current Value | ||||||||||||||||||
| Mutual Funds | ||||||||||||||||||||
| Dodge & Cox Stock Fund | 266,883 shares in registered investment company | $ | 57,569,315 | |||||||||||||||||
| MFS Institutional International Equity Fund | 1,126,125 shares in registered investment company | 31,689,168 | ||||||||||||||||||
| Commingled Funds | ||||||||||||||||||||
| * | Fidelity Growth Company Pool | 3,560,541 units in common collective trust | 125,544,675 | |||||||||||||||||
| BTC Equity Index Fund | 2,800,236 units in common collective trust | 94,468,204 | ||||||||||||||||||
| BTC Russell 2500 Index Fund | 1,917,068 units in common collective trust | 50,705,674 | ||||||||||||||||||
| BTC Lifepath 2035 | 2,287,708 units in common collective trust | 49,107,709 | ||||||||||||||||||
| BTC Lifepath 2050 | 1,925,715 units in common collective trust | 47,395,891 | ||||||||||||||||||
| BTC Lifepath 2040 | 2,066,457 units in common collective trust | 47,060,882 | ||||||||||||||||||
| BTC Lifepath 2045 | 1,902,707 units in common collective trust | 45,378,813 | ||||||||||||||||||
| BTC Lifepath 2030 | 2,065,719 units in common collective trust | 41,382,344 | ||||||||||||||||||
| BTC Lifepath 2025 | 1,591,671 units in common collective trust | 29,601,575 | ||||||||||||||||||
| Loomis Core Plus Fixed Income | 2,155,605 units in common collective trust | 24,809,240 | ||||||||||||||||||
| BTC Lifepath 2055 | 980,160 units in common collective trust | 24,545,569 | ||||||||||||||||||
| BTC Lifepath Retirement | 1,155,432 units in common collective trust | 18,559,123 | ||||||||||||||||||
| Eaton Vance Collective Investment Trust High Yield Fund | 425,481 units in common collective trust | 11,232,703 | ||||||||||||||||||
| BTC ACWI Ex-US IMI Index Fund | 374,000 units in common collective trust | 6,610,451 | ||||||||||||||||||
| BTC Lifepath 2060 | 155,387 units in common collective trust | 2,642,763 | ||||||||||||||||||
| BTC Lifepath 2065 | 79,554 units in common collective trust | 924,556 | ||||||||||||||||||
| Synthetic Guaranteed Investment Contracts (JP Morgan Stable Asset Fund) | ||||||||||||||||||||
| JPMCB Intermediate Bond Fund | 3,757,959 units in common collective trust | 62,833,079 | ||||||||||||||||||
| Common Stock | ||||||||||||||||||||
| * | Hasbro Stock Fund | 223,146 shares of Hasbro, Inc. common stock | 13,614,137 | |||||||||||||||||
| Cash and Cash Equivalents | ||||||||||||||||||||
| * | Fidelity STIF | Cash and cash equivalents | 2,424,474 | |||||||||||||||||
| Investments and Cash | 788,100,345 | |||||||||||||||||||
| * | Loans to Participants | 425 loans with interest rates from 3.25% to 7.0% and maturity dates from 2023 to 2032 | 4,483,475 | |||||||||||||||||
| Total Investments | $ | 792,583,820 | ||||||||||||||||||
* Denotes party-in-interest.
Column (d) representing cost information is not required for participant-directed investments and therefore is not included.
See accompanying report of independent registered public accounting firm.
Exhibit 23
Consent of Independent Registered Public Accounting Firm
The Plan Administrator
Hasbro, Inc. Retirement Savings Plan
We consent to the incorporation by reference in the registration statement (No. 333-34282) on Form S-8 of Hasbro, Inc. of our report dated June 28, 2023, with respect to the statements of net assets available for plan benefits of the Hasbro, Inc. Retirement Savings Plan as of December 31, 2022 and 2021, the related statements of changes in net assets available for plan benefits for the years then ended, and the supplemental schedule of Schedule H, Line 4i – Schedule of Assets (Held at End of Year) as of December 31, 2022, which report appears in the December 31, 2022 annual report on Form 11-K of the Hasbro, Inc. Retirement Savings Plan.
/s/ KPMG LLP
Providence, Rhode Island
June 28, 2023