Segment Reporting

3 Months Ended

Apr. 01, 2012

Segment Reporting (Thousands of Dollars) [Abstract]

Segment Reporting

(9) Segment Reporting

Hasbro is a worldwide leader in children’s and family leisure time products with a broad portfolio of brands and entertainment properties. The Company earns revenue and generates cash primarily through the sale of a broad variety of toy and game products, distribution of television programming based on the Company’s properties, and through the out-licensing of rights for use of its properties in connection with complementary products, including digital media and games and lifestyle products, offered by third-parties. 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 develops, markets and sells both toy and game products in the U.S. and Canada. The International segment consists of the Company’s European, Asia Pacific and Latin and South American toy and game marketing and sales operations. 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 are not necessarily representative of those which may be expected for the full year 2012, nor were those of the comparable 2011 periods representative of those actually experienced for the full year 2011. 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 ended April 1, 2012 and March 27, 2011 are as follows.

	2012		2011
	-----------------		-----------------
	External	Affiliate	External	Affiliate
Net revenues	-----------	----------	-----------	---------
U.S. and Canada	$  328,985	968	391,152	3,525
International	289,729	149	254,332	83
Entertainment and Licensing	29,336	1,317	24,641	429
Global Operations (a)	800	257,699	1,861	251,855
Corporate and Eliminations	-	(260,133)	-	(255,892)
	------------	------------	------------	------------
	$  648,850	-	671,986	-
	=======	=======	=======	=======

	2012	2011
	---------------------	---------------------
Operating profit (loss)
U.S. and Canada	$ 14,411	41,012
International	(5,084)	(1,733)
Entertainment and Licensing	7,738	5,431
Global Operations (a)	(12,733)	(7,209)
Corporate and Eliminations (b)	11,394	11,422
	----------	----------
	$ 15,726	48,923
	======	======

Total assets	April 1, 2012 -------------	March 27, 2011 -------------	Dec. 25, 2011 -------------
U.S. and Canada	$   5,293,907	4,579,394	5,225,099
International	1,747,307	1,539,115	2,062,928
Entertainment and Licensing	1,069,369	905,640	1,022,008
Global Operations	2,065,881	1,573,368	1,974,951
Corporate and Eliminations (b)	(6,279,327)	(4,657,176)	(6,154,212)
	--------------	--------------	--------------
	$   3,897,137	3,940,341	4,130,774
	========	========	========

(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 represents consolidated International segment net revenues by major geographic region for the quarters ended April 1, 2012 and March 27, 2011.

	2012	2011
	-------	-------
Europe	$  208,113	184,898
Latin America	38,969	31,698
Asia Pacific	42,647	37,736
	--------------	--------------
Net revenues	$  289,729	254,332
	========	========

The following table presents consolidated net revenues by class of principal products for the quarters ended April 1, 2012 and March 27, 2011.

	2012	2011
	----------	---------
Boys	$  302,759	290,232
Games	181,916	200,352
Girls	93,236	113,156
Preschool	69,939	68,236
Other	1,000	10
	------------	------------
Net revenues	$  648,850	671,986
	=======	=======