Segment Reporting (Tables)

6 Months Ended

Jun. 29, 2025

Schedule of Segment Reporting Information, by Segment

Information by segment and a reconciliation to reported amounts for the three months ended June 29, 2025 are as follows:


	Wizards of the Coast and Digital Gaming		Consumer Products		Entertainment		Corporate and Other		Total
Revenues	$	571.2	$	493.4	$	28.1	$	41.2	$	1,133.9
Less: Intersegment revenue	48.8		51.0		12.1		41.2		153.1
Total net revenues	522.4		442.4		16.0		—		980.8
Cost of sales	78.2		145.5		1.6		—		225.3
Program cost amortization	—		—		6.2		—		6.2
Royalties	40.6		56.7		(11.5)		(1.3)		84.5
Advertising	26.8		36.6		0.1		0.1		63.6
Amortization of intangible assets	2.1		10.1		4.9		0.1		17.2
Distribution (1)	10.9		33.3		—		0.9		45.1
Managed expense (2)	121.9		1,189.7		8.6		16.9		1,337.1
Operating profit (loss)	$	241.9	$	(1,029.5)	$	6.1	$	(16.7)	$	(798.2)

Reconciliation to Earnings (loss) before income taxes:
Interest expense									40.6
Interest income									(5.4)
Other (income) expense, net									(18.7)
Earnings before income taxes									$	(814.7)

(1) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the Consolidated Statement of Operations.

(2) Managed expenses consist of product development, selling and administrative expense and impairment of goodwill. Product development is included in Product Development in the Consolidated Statement of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statement of Operations. Impairment of goodwill is included in Impairment of goodwill in the Consolidated Statement of Operations. Managed expenses for the Consumer Products segment included a $1021.9 million non-cash loss associated with the impairment of the reporting units within the Consumer Products segment. See Note 5, Goodwill, to the consolidated financial statements for further information.

Information by segment and a reconciliation to reported amounts for the three months ended June 30, 2024 are as follows:


	Wizards of the Coast and Digital Gaming		Consumer Products		Entertainment		Corporate and Other		Total
Revenues	$	488.0	$	589.2	$	30.8	$	34.2	$	1,142.2
Less: Intersegment revenue	36.0		64.7		12.0		34.2		146.9
Total net revenues	452.0		524.5		18.8		—		995.3
Cost of sales (1)	67.8		194.6		1.9		(26.6)		237.7
Program cost amortization	—		—		8.5		—		8.5
Royalties	10.7		61.1		(17.2)		0.7		55.3
Advertising	20.2		38.0		0.1		2.1		60.4
Amortization of intangible assets	2.0		11.1		3.8		0.2		17.1
Distribution (2)	7.7		39.0		—		(0.1)		46.6
Managed expense (1) (3)	96.5		190.0		22.7		48.4		357.6
Operating profit (loss)	$	247.1	$	(9.3)	$	(1.0)	$	(24.7)	$	212.1

Reconciliation to Earnings (loss) before income taxes:
Interest expense									43.0
Interest income									(13.0)
Other (income) expense, net									(0.8)
Earnings before income taxes									$	182.9

(1) During the three months ended June 30, 2024, the Company recorded two non-recurring prior year adjustments: (i) a $31.1 million expense related to historical environmental liabilities that was recorded in managed expense and (ii) a $26.7 million benefit related to over-accrual of vendor commitment liabilities that was recorded in Cost of sales. See Note 1, Basis of Presentation, to the consolidated financial statements for further information. Both of these originally related to the Consumer Products segment; however, because the non-recurring nature of these

adjustments are related to historical periods and not associated with the on-going future operations of the Consumer Products segment, the Company recorded the error corrections within Corporate and Other.

(2) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the Consolidated Statement of Operations.

(3) Managed expenses consist of product development and selling and administrative expense. Product development is included in Product Development in the Consolidated Statement of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statement of Operations. Managed expenses for the Entertainment segment included a $15.3 million loss associated with the sale of the eOne Film and TV business.

Information by segment and a reconciliation to reported amounts for the six months ended June 29, 2025 are as follows:


	Wizards of the Coast and Digital Gaming		Consumer Products		Entertainment		Corporate and Other		Total
Revenues	$	1,076.9	$	926.8	$	66.1	$	70.0	$	2,139.8
Less: Intersegment revenue	92.4		86.1		23.4		70.0		271.9
Total net revenues	984.5		840.7		42.7		—		1,867.9
Cost of sales	152.0		275.3		2.7		(0.2)		429.8
Program cost amortization	—		—		13.6		—		13.6
Royalties	50.8		107.4		(19.9)		3.2		141.5
Advertising	53.1		67.1		0.2		(1.4)		119.0
Amortization of intangible assets	4.2		20.3		9.6		0.1		34.2
Distribution (1)	20.0		65.1		—		0.2		85.3
Managed expense (2)	232.6		1,379.0		41.4		19.0		1,672.0
Operating profit (loss)	$	471.8	$	(1,073.5)	$	(4.9)	$	(20.9)	$	(627.5)

Reconciliation to Earnings (loss) before income taxes:
Interest expense									82.2
Interest income									(14.3)
Other (income) expense, net									(17.3)
Earnings before income taxes									$	(678.1)

(1) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the Consolidated Statement of Operations.

(2) Managed expenses consist of product development, selling and administrative expense, impairment of goodwill, and loss on disposal of business. Product development is included in Product Development in the Consolidated Statement of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statement of Operations. Impairment of goodwill is included in the Impairment of goodwill in the Consolidated Statement of Operations. Loss on disposal of business is included in Loss on disposal of business in the Consolidated Statement of Operations. Managed expenses for the Consumer Products segment included a $1021.9 million non-cash loss associated with the impairment of the reporting units within the Consumer Products segment. See Note 5, Goodwill, to the consolidated financial statements for further information. Managed expenses for the Entertainment segment included a $25.0 million non-cash loss associated with the sale of the eOne Film and TV business.

Information by segment and a reconciliation to reported amounts for the six months ended June 30, 2024 are as follows:


	Wizards of the Coast and Digital Gaming		Consumer Products		Entertainment		Corporate and Other		Total
Revenues	$	842.2	$	1,041.5	$	67.3	$	63.4	$	2,014.4
Less: Intersegment revenue	73.9		104.0		20.5		63.4		261.8
Total net revenues	768.3		937.5		46.8		—		1,752.6
Cost of sales (1)	129.1		336.2		3.3		(26.7)		441.9
Program cost amortization	—		—		16.6		—		16.6
Royalties	21.2		109.4		(25.2)		0.8		106.2
Advertising	44.5		65.6		0.3		1.5		111.9
Amortization of intangible assets	4.1		22.2		7.6		0.2		34.1
Distribution (2)	14.4		72.6		—		—		87.0
Managed expense (1) (3)	185.1		387.7		39.4		14.4		626.6
Operating profit (loss)	$	369.9	$	(56.2)	$	4.8	$	9.8	$	328.3

Reconciliation to Earnings (loss) before income taxes:
Interest expense									81.5
Interest income									(21.3)
Other (income) expense, net									4.2
Earnings before income taxes									$	263.9

(1) During the six months ended June 30, 2024, the Company recorded two non-recurring prior year adjustments: (i) a $31.1 million expense related to historical environmental liabilities that was recorded in managed expense and (ii) a $26.7 million benefit related to over-accrual of vendor commitment liabilities that was recorded in Cost of sales. See Note 1, Basis of Presentation, to the consolidated financial statements for further information. Both of these originally related to the Consumer Products segment; however, because the non-recurring nature of these adjustments are related to historical periods and not associated with the on-going future operations of the Consumer Products segment, the Company recorded the error corrections within Corporate and Other.

(2) Distribution expenses consist of shipping and warehousing expense and is included in Selling, distribution and administration in the Consolidated Statement of Operations.

(3) Managed expenses consist of product development, and selling and administrative expense. Product development is included in Product Development in the Consolidated Statement of Operations. Selling and administrative expense is included in Selling, distribution and administration in the Consolidated Statement of Operations. Loss on disposal of business is included in Loss on disposal of business in the Consolidated Statement of Operations. Managed expenses for the Entertainment segment included a $24.4 million loss associated with the sale of the eOne Film and TV business.

Schedule of Total Assets and Other Supplemental Information by Segment

Total assets information by segments is as follows:


(In millions)	June 29, 2025		June 30, 2024		December 29, 2024
Total Assets
Wizards of the Coast and Digital Gaming	$	6,856.5	$	5,111.4	$	5,778.4
Consumer Products	8,616.5		6,930.1		7,785.2
Entertainment	1,438.7		2,884.9		2,857.8
Corporate and Other(1)	(11,737.3)		(8,062.3)		(10,081.1)
Total	$	5,174.4	$	6,864.1	$	6,340.3

(1) Corporate and Other consists of investments in subsidiary and intercompany receivables.

Other supplemental information by segments are as follows:


	Three Months Ended				Six Months Ended
(In millions)	June 29, 2025		June 30, 2024		June 29, 2025		June 30, 2024
Depreciation and intangible asset amortization(1)
Wizards of the Coast and Digital Gaming	$	4.3	$	4.3	$	8.9	$	8.6
Consumer Products	24.8		28.6		43.1		50.2
Entertainment	5.2		4.2		10.3		8.3
Corporate and Other	(2.4)		8.3		4.0		16.6
Total	$	31.9	$	45.4	$	66.3	$	83.7
Additions to property, plant and equipment
Wizards of the Coast and Digital Gaming	$	5.4	$	9.0	$	7.1	$	15.0
Consumer Products	11.0		13.2		22.2		24.5
Entertainment	—		—		0.1		—
Corporate and Other	(0.3)		5.2		0.5		10.0
Total	$	16.1	$	27.4	$	29.9	$	49.5

(1) The amounts of depreciation disclosed by reportable segments are included within cost of sales, distribution and managed expense. Intangible asset amortization is included within amortization of intangible assets.