Other Comprehensive Earnings (Loss)

3 Months Ended

Mar. 30, 2025

Comprehensive Income (Loss), Net of Tax, Attributable to Parent [Abstract]

Components of Other comprehensive earnings (loss) are presented within the Consolidated Statements of Comprehensive Earnings (Loss). The following table presents the related tax effects on changes in Other comprehensive earnings (loss):


	Three Months Ended
	March 30, 2025		March 31, 2024
Other comprehensive earnings (loss), tax effect:
Tax benefit (expense) on cash flow hedging activities	$	1.4	$	—
Reclassifications to earnings (loss), tax effect:
Tax benefit (expense) on cash flow hedging activities	0.2		(0.2)

Total tax effect on other comprehensive earnings (loss)	$	1.6	$	(0.2)

Changes in the components of Accumulated other comprehensive earnings (loss), net of tax are as follows:


	Pension and Postretirement Amounts		Gains (Losses) on Derivative Instruments		Unrealized Holding Gains (Losses) on Available- for-Sale Securities		Foreign Currency Translation Adjustments		Total Accumulated Other Comprehensive Loss
2025
Balance at December 29, 2024	$	(8.0)	$	(9.1)	$	(0.1)	$	(229.2)	$	(246.4)
Current period other comprehensive earnings (loss)	—		(3.4)		—		10.2		6.8
Balance at March 30, 2025	$	(8.0)	$	(12.5)	$	(0.1)	$	(219.0)	$	(239.6)

2024
Balance at December 31, 2023	$	(4.2)	$	(16.8)	$	(0.1)	$	(180.4)	$	(201.5)
Current period other comprehensive earnings (loss)	—		2.2		—		(4.0)		(1.8)
Balance at March 31, 2024	$	(4.2)	$	(14.6)	$	(0.1)	$	(184.4)	$	(203.3)

Gains (Losses) on Derivative Instruments

At March 30, 2025, the Company had remaining deferred gains on foreign currency forward contracts, net of tax, of $0.8 million in Accumulated other comprehensive earnings (loss) ("AOCE"). These instruments hedge payments related to inventory purchased in the three months ended March 30, 2025 or forecasted to be purchased during the remainder of 2025, intercompany expenses expected to be paid or received during 2025 and cash receipts for sales made at the end of the first quarter of 2025 or forecasted to be made in the remainder of 2025. These amounts will be reclassified into the Consolidated Statements of Operations upon the sale of the related inventory or recognition of the related sales or expenses.

In addition to foreign currency forward contracts, the Company entered into hedging contracts on future interest payments related to the 5.10% Notes due 2044. At the date of debt issuance, these contracts were terminated and the fair value on the date of settlement was deferred in AOCE and is being amortized to interest expense over the life of the related Notes using the effective interest rate method. At March 30, 2025, deferred losses, net of tax of $13.3 million related to these instruments remained in AOCE. For each of the three months ended March 30, 2025 and March 31, 2024, previously deferred losses, net of tax, of $0.2 million related to these instruments were reclassified from AOCE to net earnings.

Of the amounts included in AOCE at March 30, 2025, the Company expects net gains of approximately $2.3 million to be reclassified to the Consolidated Statements of Operations within the next twelve months. However, the amount ultimately realized in earnings is dependent on the fair value of the hedging instruments on the settlement dates.

See Note 12, Derivative Financial Instruments, for additional discussion on reclassifications from AOCE to earnings.

HASBRO, INC. 10-Q