HASBRO, INC.

Contract Assets and Liabilities

In the ordinary course of business, the Company enters into contracts to license certain of the Company’s intellectual property, providing licensees right-to-use or access such intellectual property for use in the production and sale of consumer products and digital game development, location-based entertainment, and for use within content for distribution over streaming platforms and for television and film. The Company also licenses owned television and film content for distribution to third parties in formats that include broadcast, digital streaming and theatrical. Through these arrangements, the Company may receive advanced royalty payments from licensees, either in advance of a licensees’ subsequent sales to customers or prior to the completion of the Company’s performance obligation. In addition, the Wizards of the Coast and Digital Gaming segment may receive advanced payments from end users of its digital games at the time of the initial purchase, through in-application purchases or through subscription services. The Company defers revenues on all licensee and digital gaming advanced payments until the respective performance obligations are satisfied.

The Company records the aggregate deferred revenues as contract liabilities, with the current portion recorded within Accrued liabilities and the long-term portion recorded within Other liabilities in the Company’s Consolidated Balance Sheets. The Company records contract assets, primarily related to (1) minimum guarantees being recognized in advance of contractual invoicing, which are recognized ratably over the terms of the respective license periods, and (2) film and television distribution revenues recorded for content delivered, where payment will occur over the license term. The current portion of contract assets is recorded in Prepaid expenses and other current assets and the long-term portion is recorded within Other assets.

The opening and closing balances of contract assets and contract liabilities are as follows:

The increase in contract assets during 2025 and 2024 is primarily the result of an increase in the amount of revenues recognized in advance of contractual invoicing, offset by the impact of previously unbilled revenues that were invoiced throughout the period within the ordinary course of business.

The change in contract liabilities during 2025 and 2024 is primarily the result of an increase in the amount of advanced payments received from customers relating to performance obligations that had not yet been satisfied, offset by $218.0 million and $134.2 million of revenues recognized that were included in the beginning contract liabilities balance as of December 29, 2024 and December 31, 2023, respectively.

Unsatisfied Performance Obligations

As of December 28, 2025, revenue for unsatisfied performance obligations expected to be recognized in the future is $965.4 million, primarily for intellectual property to be made available in the future under existing agreements with merchandise and co-branding licensees and television station affiliates. Of this amount, we expect to recognize approximately $223.5 million in 2026, $164.5 million in 2027, $128.9 million in 2028, and $448.5 million thereafter. These amounts include only fixed consideration or minimum guarantees and do not include amounts related to (i) contracts with an original expected term of one year or less or (ii) licenses of intellectual property that are solely based on the sales of the licensee.

Accounts Receivable and Allowance for Credit Losses

The Company’s balance for Accounts receivable on the Consolidated Balance Sheets as of December 28, 2025 and December 29, 2024 are primarily derived from contracts with customers. A summary of the related allowance for credit losses activity is as follows:

Disaggregation of revenues

The Company disaggregates its revenues from contracts with customers by reportable segment: Wizards of the Coast and Digital Gaming, Consumer Products, and Entertainment. The Company further disaggregates revenues within its Wizards of the Coast and Digital Gaming segment by category: Tabletop Gaming and Digital and Licensed Gaming; within its Consumer Products segment by major geographic region: North America, Europe, Latin America, and Asia Pacific; and within its Entertainment segment by category: Family Brands and Film and TV. Finally, the Company disaggregates its revenues into three brand portfolios: Grow Brands, Optimize Brands, and Reinvent Brands. We believe these collectively depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic factors.

In 2025, 2024, and 2023 the Company’s largest customers were Amazon.com, Inc. and Wal-Mart, Inc. with sales to each of these customers amounting to 11% and 9% of consolidated net revenues in 2025, respectively. In 2024, sales to these customers amounted to 11% and 12%, respectively, of consolidated net revenues. In 2023, sales to each of these customers amounted to 11% of consolidated net revenues. Net revenues from the Company’s major customers are reported within the Wizards of the Coast and Digital Gaming segment, Consumer Products segment, and the Entertainment segment.

The following table represents consolidated Wizards of the Coast and Digital Gaming segment net revenues by category:

The following table represents consolidated Consumer Products segment net revenues by major geographic region:

The following table represents consolidated Entertainment segment net revenues by category:

(1)Net revenues for Film and TV in 2023 include amounts associated with the Company's eOne Film and TV business that was sold to Lionsgate during 2023, as discussed in Note 3, Sale of Entertainment One Film and TV Business.

The following table represents consolidated net revenues by brand portfolio: