Hasbro (HAS) Risk Factor Changes

As a large multinational corporation, we are subject to regulatory investigations, litigation and arbitration disputes, including potential liability from personal injury or property damage claims by the users of prod…

content and in-game purchases, advertising and consumer disclosures, and the use of player data, and increased regulatory scrutiny in these areas could increase compliance costs, restrict certain features or monetizat…

We also may choose to finance our capital needs, from time to time, through the issuance of debt securities.

•require that materially adverse terms, conditions or covenants be placed on us under our debt instruments, which could include, for example, limitations on executing additional borrowings, paying dividends, repurchas…

We have approximately $3,281.9 million in total long-term indebtedness.

Our global operations mean we transact business in many different jurisdictions with many different currencies.

Economic conditions could impact discretionary consumer spending and harm our business and financial performance.

Our intellectual property, including our trademarks and tradenames, copyrights, patents, and rights under our license agreements and other agreements that establish our intellectual property rights and maintain the co…

The impact of the planned move, recent reductions in workforce or failing to retain key employees can be high due to increased risk of loss of important information, key knowledge and relationships, loss of creative t…

Our officers and employees are at the heart of all our efforts.

We have relied and expect to further rely on third-party vendor and outsourcing relationships for certain corporate, administrative and other functional areas of the business.

Given that our toy and game manufacturing is conducted by third-party manufacturers, health conditions and other factors affecting social and economic activity where our manufacturers are located may affect the moveme…

Most of our toy and game products are manufactured by third-party manufacturers, a substantial but decreasing number of which are in China, and a significant amount of our product sourcing also coming from manufacture…

If we are unable to expand our direct-to-consumer relationships, our business may be harmed.

We have periodically faced global supply chain challenges with the production and delivery of some products being delayed due to logistics, including labor, trucking and container shortages, strikes, port congestion a…

We are implementing new original design processes for some of our products in an effort to reduce costs and potentially enter into new or underserved markets.

Our business may be harmed by the imposition or threat of tariffs, including reciprocal or retaliatory tariffs, in markets in which we operate which could increase our product costs and other costs of doing business,…

We cannot be certain that the products and offerings of companies we may acquire, or acquire an interest in, will achieve or maintain popularity with consumers in the future or that any such acquired companies or inve…

In addition to existing competitors, the barriers to entry for new participants in the play industry are low.

If we are unable to compete effectively with existing or new competitors, our revenues, market share and profitability could decline.

There are no assurances that we will achieve cost savings in the amounts we anticipate or within the anticipated timeframes or at all.

Technological developments, such as developments in artificial intelligence and shifts to streaming platforms for entertainment content, continue to evolve, and these developments may affect aspects of our existing bu…

Our ability to successfully create innovative products that inspire a lifetime of play is affected by the interests of children, families, fans and audiences which evolve quickly and can change dramatically from year…

Consumer interests change quickly and acceptance of our product offerings are influenced by technological and outside factors, making it difficult to design and develop innovative products and other offerings which ar…

Third party licensees and partners of our brands may fail to honor their obligations to us or their actions may put us at risk.

If we produce a line of products based on a movie or television series or digital game, the timing of release or overall success of the movie, series or digital game has a critical impact on the level of consumer inte…

artificial intelligence is further incorporated into the development of games.

Designing, developing and producing digital gaming and other technologically advanced or innovative products often relies on third parties and requires different competencies and follows different timelines than tradi…

A key component to the success of our strategy is to continue to develop, publish and commercialize digital games, including AAA/AA games, games as a service and licensed games based on our existing IP, as well as new…

•returning our toy business to growth and increased profitability by optimizing the business, including through right-sizing our cost structure, creating efficiencies in our operations, and designing cost-effective pr…

•our ability to successfully innovate, design, develop, price, commercialize and grow a focused group of brands to global consumers;

Failure to execute this strategic plan may harm our business.

As a large multinational corporation, we are subject to regulatory investigations, litigation and arbitration disputes, including potential liability from personal injury or property damage claims by the users of prod…

securities.

We also have a revolving credit agreement which provides for a $1,250.0 million committed revolving credit facility.

Due to the seasonal nature of our business, in order to meet our working capital needs, particularly those in the third and fourth quarters, we may rely on our commercial paper program, revolving credit facility and o…

Outbreaks of communicable infections, diseases, or public health pandemics in the markets in which we and our employees, consumers, customers, partners, licensees, suppliers and manufacturers operate, could substantia…

Our intellectual property, including our trademarks and tradenames, copyrights, patents, and rights under our license agreements and other agreements that establish our intellectual property rights and maintain the

We have also experienced significant changes in our leadership in a relatively short period of time, with most key members of executive leadership having been appointed within the past few years.

Further, as described elsewhere, the imposition or threat of tariffs, border adjustment taxes, trade sanctions or other regulations or economic penalties by the U.S.

Our reliance on third-party manufacturers to produce our products, particularly in China, the U.S., Vietnam and India, presents risks to our business.

successful, our business may be harmed.

We are continuing to optimize our supply chain by improving our systems and sourcing to enable efficient product deployment, enhance product quality and safety, drive efficiency in transportation and our fulfillment c…

If we are not successful in transforming our supply chain operations, our business may be harmed.

would continue to work for us after the acquisition or that they would develop popular and profitable products, entertainment or services in the future.

Technological as well as other trends in the entertainment industry, such as the continuing shift to streaming platforms, have caused significant disruption to the retail distribution of entertainment offerings and ha…

acceptance or can be popular during a certain period of time but then be rapidly replaced.

•our ability to successfully license, divest, sell, or otherwise cease certain parts of the business that are not as profitable as other areas or are not core to the business.

•the attraction and retention of key personnel with core skills and competencies in the areas of focus; and

•the ability of our workforce to focus and execute on priority transformational projects across the business, and to sustain changes to maximize savings;

•our ability to successfully manage inventory;

•our ability to simplify our supply chain logistics;

•our ability to gain market share in our focus categories;

•our ability to successfully develop products that gain sufficient consumer interest;

•our ability to implement appropriate systems and processes to obtain and analyze data and insights from consumers to enable us to make informed decisions about priorities and consumer preferences;

•our ability to successfully grow our digital gaming, licensing, and direct-to-consumers business;

Our business strategy has evolved to focus on extending the reach of our toy and game products globally to improve our position in the marketplace, increase revenue and increase operating profit.

We are subject to significant government regulations, including, in the U.S., under The Consumer Products Safety Act, The Federal Hazardous Substances Act, and The Flammable Fabrics Act, as well as under product safet…

Due to the seasonal nature of our business, in order to meet our working capital needs, particularly those in the third and fourth quarters, we may rely on our commercial paper program, revolving credit facility and o…

Public health crises may disrupt our business.

Certain aspects of our business, including digital game development and franchise-driven brands such as MAGIC: THE GATHERING and DUNGEONS & DRAGONS, depend on a limited number of highly skilled creative and technical…

The relocation of our primary headquarters for our toys, board games, licensing and entertainment operations from Rhode Island to Boston, Massachusetts requires substantial investment and could disrupt operations.

Our reliance on third-party manufacturers presents risks to our business.

greater market acceptance than our products and potentially reduce demand for our products, lower our revenues and lower our profitability.

As our strategy increasingly relies on third-party partners to invest in and scale experiences based on our intellectual property, reductions in partner investment, shifts in partner priorities or changes in economic…

A significant part of our strategy for our consumer products business and our Wizards and digital gaming business is to license premium and well-recognized intellectual property for the development of products.

In addition, the simultaneous pursuit of multiple strategic initiatives, including digital gaming development, licensing expansion, AI adoption, systems modernization and cost-saving initiatives, may strain management…

Because our strategy emphasizes growing a focused set of franchises and expanding our higher-margin games and digital businesses, including MAGIC: THE GATHERING and DUNGEONS & DRAGONS, adverse trends affecting consume…

•continuing to grow our licensing business; and

•successfully launching new digital studios and new digital games that gain customer acceptance;

•successfully growing and delivering on our digital gaming business;

•continuing to grow MAGIC: THE GATHERING and driving growth in DUNGEONS & DRAGONS as traditional trading card and role-playing games, as well as further expanding into digital offerings;

Our Playing to Win business strategy evolves around our mission to create joy and community through the magic of play and inspiring a lifetime of play.