Segment Reporting

9 Months Ended

Sep. 25, 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 nine 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 nine months ended September 25, 2011 and September 26, 2010 are as follows.

	Quarter Ended
	------------------
	Sept. 25, 2011		Sept. 26, 2010
	-----------------		-----------------
	External	Affiliate	External	Affiliate
Net revenues	-----------	----------	-----------	---------
U.S. and Canada	$    764,562	4,554	825,483	5,942
International	563,310	9	458,917	29
Entertainment and Licensing	46,316	1,047	27,478	-
Global Operations (a)	1,623	635,081	1,424	667,017
Corporate and Eliminations	-	(640,691)	-	(672,988)
	------------	------------	------------	------------
	$ 1,375,811	-	1,313,302	-
	=======	=======	=======	=======

	Nine Months Ended
	------------------
	Sept. 25, 2011		Sept. 26, 2010
	-----------------		-----------------
	External	Affiliate	External	Affiliate
Net revenues	-----------	----------	-----------	---------
U.S. and Canada	$  1,660,664	13,738	1,694,713	12,256
International	1,192,113	108	942,047	59
Entertainment and Licensing	98,144	1,735	83,038	-
Global Operations (a)	5,330	1,240,428	3,666	1,294,972
Corporate and Eliminations	-	(1,256,009)	-	(1,307,287)
	------------	------------	------------	------------
	$  2,956,251	-	2,723,464	-
	=======	=======	=======	=======

	Quarter Ended ----------------------		Nine Months Ended --------------------------
Operating profit (loss)	Sept. 25, 2011 -------	Sept. 26, 2010 -------	Sept. 25, 2011 -------	Sept. 26, 2010 -------
U.S. and Canada	$   128,789	158,763	227,526	278,635
International	100,739	70,818	132,756	79,984
Entertainment and Licensing	15,251	5,918	21,294	28,280
Global Operations (a)	8,802	25,298	(4,522)	25,215
Corporate and Eliminations (b)	(5,509)	(23,040)	348	(25,304)
	----------	-----------	----------	------------
	$  248,072	237,757	377,402	386,810
	======	======	======	======

Total assets	Sept. 25,     2011   -------------	Sept. 26, 2010 -------------	Dec. 26,     2010     -------------
U.S. and Canada	$    5,159,977	4,335,848	4,571,597
International	1,969,676	1,610,002	1,672,326
Entertainment and Licensing	1,003,345	818,409	861,971
Global Operations	1,832,306	1,360,879	1,542,896
Corporate and Eliminations (b)	(5,880,578)	(3,909,521)	(4,555,564)
	--------------	--------------	--------------
	$    4,084,726	4,215,617	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 nine months ended September 25, 2011 and September 26, 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		Nine Months Ended
	Sept. 25, 2011 ---------	Sept. 26, 2010 ---------	Sept. 25, 2011 ---------	Sept. 26, 2010 ---------
Boys	534,595	463,697	1,285,273	930,277
Games and puzzles	364,740	387,041	796,364	876,312
Girls	259,113	269,069	491,412	531,668
Preschool	217,363	193,262	383,173	384,778
Other	-	233	29	429
	------------	------------	------------	------------
Net revenues	1,375,811	1,313,302	2,956,251	2,723,464
	========	=======	========	=======