Segment Reporting

6 Months Ended

Jun. 26, 2011

Segment Reporting (Thousands of Dollars) [Abstract]

Segment Reporting

(10) Segment Reporting

Hasbro is a worldwide leader in children’s and family leisure time products and services, including toys, games and licensed products ranging from traditional to high-tech and digital. The Company’s segments are (i) U.S. and Canada; (ii) International; (iii) Entertainment and Licensing; and (iv) Global Operations.

The U.S. and Canada segment includes the marketing and selling of boys’ action figures, vehicles and playsets, girls’ toys, electronic toys and games, plush products, preschool toys and infant products, electronic interactive products, toy-related specialty products, traditional board games and puzzles, DVD-based games and trading card and role-playing games within the United States and Canada. Within the International segment, the Company markets and sells both toy and certain game products in markets outside of the U.S. and Canada, primarily the European, Asia Pacific, and Latin and South American regions. The Company’s Entertainment and Licensing segment includes the Company’s lifestyle licensing, digital gaming, movie, television and online entertainment operations. The Global Operations segment is responsible for manufacturing and sourcing finished product for the Company’s U.S. and Canada and International segments.

Segment performance is measured at the operating profit level. Included in Corporate and eliminations are certain corporate expenses, the elimination of intersegment transactions and certain assets benefiting more than one segment. Intersegment sales and transfers are reflected in management reports at amounts approximating cost. Certain shared costs, including global product development and marketing expenses, are allocated to segments based upon foreign exchange rates fixed at the beginning of the year, with adjustments to actual foreign exchange rates included in Corporate and eliminations. The accounting policies of the segments are the same as those referenced in Note 1.

Results shown for the quarter and six months are not necessarily representative of those which may be expected for the full year 2011, nor were those of the comparable 2010 periods representative of those actually experienced for the full year 2010. Similarly, such results are not necessarily those which would be achieved were each segment an unaffiliated business enterprise.

Information by segment and a reconciliation to reported amounts for the quarters and six months ended June 26, 2011 and June 27, 2010 are as follows.

	Quarter Ended
	------------------
	June 26, 2011		June 27, 2010
	-----------------		-----------------
	External	Affiliate	External	Affiliate
Net revenues	-----------	----------	-----------	---------
U.S. and Canada	$    504,950	5,659	444,520	3,590
International	374,471	16	261,411	6
Entertainment and Licensing	27,187	259	30,451	-
Global Operations (a)	1,846	353,492	1,409	381,895
Corporate and Eliminations	-	(359,426)	-	(385,491)
	------------	------------	------------	------------
	$    908,454	-	737,791	-
	=======	=======	=======	=======

	Six Months Ended
	------------------
	June 26, 2011		June 27, 2010
	-----------------		-----------------
	External	Affiliate	External	Affiliate
Net revenues	-----------	----------	-----------	---------
U.S. and Canada	$    896,102	9,184	869,230	6,314
International	628,803	99	483,130	30
Entertainment and Licensing	51,828	688	55,560	-
Global Operations (a)	3,707	605,347	2,242	627,955
Corporate and Eliminations	-	(615,318)	-	(634,299)
	------------	------------	------------	------------
	$  1,580,440	-	1,410,162	-
	=======	=======	=======	=======

	Quarter Ended ----------------------		Six Months Ended --------------------------
Operating profit (loss)	June 26, 2011 -------	June 27, 2010 -------	June 26, 2011 -------	June 27, 2010 -------
U.S. and Canada	$   57,725	58,741	98,737	119,872
International	33,750	11,596	32,017	9,166
Entertainment and Licensing	612	12,996	6,043	22,362
Global Operations (a)	(6,115)	2,645	(13,324)	(83)
Corporate and Eliminations (b)	(5,565)	(6,252)	5,857	(2,264)
	----------	---------	----------	---------
	$   80,407	79,726	129,330	149,053
	======	======	======	======

Total assets	June 26,     2011   -------------	June 27, 2010 -------------	Dec. 26,     2010     -------------
U.S. and Canada	$   4,818,551	3,851,316	4,571,597
International	1,742,702	1,378,335	1,672,326
Entertainment and Licensing	937,287	778,428	861,971
Global Operations	1,671,376	1,241,216	1,542,896
Corporate and Eliminations (b)	(5,229,171)	(3,275,619)	(4,555,564)
	--------------	-------------	-------------
	$   3,940,745	3,973,676	4,093,226
	========	========	========

(a) The Global Operations segment derives substantially all of its revenues, and thus its operating results, from intersegment activities.

(b) Certain intangible assets, primarily goodwill, which benefit multiple operating segments are reflected as Corporate assets for segment reporting purposes. In accordance with accounting standards related to impairment testing, these amounts have been allocated to the reporting unit which benefits from their use. In addition, allocations of certain expenses related to these assets to the individual operating segments are done at the beginning of the year based on budgeted amounts. Any difference between actual and budgeted amounts is reflected in Corporate and eliminations.

The following table presents consolidated net revenues by class of principal products for the quarters and six months ended June 26, 2011 and June 27, 2010.  Effective at the beginning of fiscal 2011, the Company has reclassified certain of its products from the Boys category to the Preschool category.  The table below presents the 2010 net revenues reclassified to reflect the 2011 product category classifications.

	Quarter Ended		Six Months Ended
	June 26, 2011 ---------	June 27, 2010 ---------	June 26, 2011 ---------	June 27, 2010 ---------
Boys	$ 460,446	234,458	750,678	466,580
Games and puzzles	231,272	262,247	431,624	489,271
Girls	119,143	133,214	232,299	262,599
Preschool	97,574	107,872	165,810	191,516
Other	19	-	29	196
	------------	------------	--------------	--------------
Net revenues	$ 908,454	737,791	1,580,440	1,410,162
	=======	=======	========	========