HASBRO, INC.

(18)Leases

The Company has operating lease agreements for offices and certain types of equipment and vehicles. The operating leases have remaining terms of 1 to 13 years, some of which include options to extend lease terms or options to terminate current lease terms at certain times, subject to notification requirements set out in the lease agreement. Payments under certain of the lease agreements may be subject to adjustment based on a consumer price index or other inflationary indices. Any adjustments to these payments based on the related indices is recorded to expense as incurred.

The Company has elected the short-term lease practical expedient in accordance with ASC Topic 842, Leases (ASC Topic 842) that allows entities to recognize lease payments on a straight-line basis over the lease term for leases with a term of 12 months or less. Lease expense recognized for such leases was $0.4 million, $0.5 million, and $0.6 million for the years ended 2025, 2024 and 2023, respectively. Real estate taxes, insurance and maintenance expenses are generally obligations of the Company. The Company capitalizes non-lease components for equipment leases, but expenses non-lease components as incurred for real estate, which amounted to $8.6 million, $8.2 million, and $11.3 million in 2025, 2024 and 2023, respectively.

Operating lease costs for capitalized leases amounted to $32.8 million, $35.4 million and $44.2 million for each of the years ended 2025, 2024 and 2023, respectively. During 2025, 2024 and 2023, rent expense for arrangements that do not qualify as leases under ASC Topic 842 amounted to $28.2 million, $26.4 million, and $33.4 million, respectively. The Company has a de minimis amount of finance leases.

All leases expire prior to 2038. Operating leases often contain renewal options. In those locations in which the Company continues to operate, management expects that, in the normal course of business, leases that expire will be renewed or replaced by leases on other properties.

As of December 28, 2025, the Company has entered into significant new leases that have not yet commenced with estimated aggregated future lease payments within the initial lease terms of approximately $200.3 million. These leases are expected to commence during 2026, with initial lease terms ranging from 10 years to 12 years.

Information related to the Company's operating leases are as follows:

The following is a reconciliation of future undiscounted cash flows to the operating liabilities, and the related right-of-use assets, included in our Consolidated Balance Sheets as of December 28, 2025:

(1) Included in Accrued liabilities on the Consolidated Balance Sheets

(2) Included in Other liabilities on the Consolidated Balance Sheets

(3)Included in Property, plant and equipment on the Consolidated Balance Sheets