Income Taxes |
6 Months Ended |
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Jun. 29, 2025 | |
| Income Tax Disclosure [Abstract] | |
| Income Taxes | Income Taxes The Company and its subsidiaries file income tax returns in the United States and various state and international jurisdictions. In the normal course of business, the Company is regularly audited by U.S. federal, state and local, and international tax authorities in various tax jurisdictions. The effective tax rate ("ETR") was (4.9)% and (11.4)% for the three and six months ended June 29, 2025, respectively, and 24.2% and 25.1% for the three and six months ended June 30, 2024, respectively. The following items impacted the ETR for 2025 and 2024: •During the three months ended June 29, 2025 the Company recorded a non-cash goodwill impairment of $1,021.9 million with no corresponding tax benefit within the Consumer Products segment. The Company also recorded a net discrete tax benefit of $5.9 million, primarily associated with the release of a valuation allowance. •During the three months ended June 30, 2024 the Company recorded an unfavorable adjustment to the Loss on disposal of the eOne Film and TV business of $15.3 million with no corresponding tax benefit. The Company also recorded a net discrete tax benefit of $1.1 million, primarily associated with uncertain tax positions. •During the six months ended June 29, 2025 the Company recorded a non-cash goodwill impairment of $1,021.9 million within the Consumer Products segment and an unfavorable adjustment to the Loss on disposal of the eOne Film and TV business of $25.0 million. Neither adjustment had a corresponding tax benefit. The Company also recorded a net discrete tax benefit of $6.2 million, primarily associated with the release of a valuation allowance. •During the six months ended June 30, 2024 the Company recorded unfavorable adjustments to the Loss on disposal of the eOne Film and TV business of $24.4 million with no corresponding tax benefit. The Company also recorded a net discrete tax expense of $0.7 million, primarily associated with stock-based compensation. On July 4, 2025, President Donald Trump signed the One Big Beautiful Bill Act (the “Act”) into law. Under U.S. GAAP, the impact of changes in tax law are recognized as a component of the income tax provision related to continuing operations with the entire impact recognized as a discrete item in the quarter of enactment. The Act had no impact on the Company’s income tax provision during the three and six months ended June 29, 2025, and the Company is currently evaluating the impact of the Act to our consolidated financial statements in future quarters.
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