Segment Reporting

6 Months Ended

Jul. 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 and six months 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 and six months ended July 1, 2012 and June 26, 2011 are as follows.

	Quarter Ended
	------------------
	July 1, 2012		June 26, 2011
	-----------------		-----------------
	External	Affiliate	External	Affiliate
Net revenues	-----------	----------	-----------	---------
U.S. and Canada	$ 406,588	1,294	504,950	5,659
International	360,493	26	374,471	16
Entertainment and Licensing	43,216	1,513	27,187	259
Global Operations (a)	1,170	298,500	1,846	353,492
Corporate and Eliminations	-	(301,333)	-	(359,426)
	------------	------------	------------	------------
	$ 811,467	-	908,454	-
	=======	=======	=======	=======

	Six Months Ended
	------------------
	July 1, 2012		June 26, 2011
	-----------------		-----------------
	External	Affiliate	External	Affiliate
Net revenues	-----------	----------	-----------	---------
U.S. and Canada	$  735,573	2,262	896,102	9,184
International	650,222	175	628,803	99
Entertainment and Licensing	72,552	2,830	51,828	688
Global Operations (a)	1,970	556,199	3,707	605,347
Corporate and Eliminations	-	(561,466)	-	(615,318)
	------------	------------	------------	------------
	$1,460,317	-	1,580,440	-
	=======	=======	=======	=======

	Quarter Ended ----------------------		Six Months Ended --------------------------
Operating profit (loss)	July 1, 2012 -------	June 26, 2011 -------	July 1, 2012 -------	June 26, 2011 -------
U.S. and Canada	$  60,928	57,725	75,339	98,737
International	29,851	33,750	24,767	32,017
Entertainment and Licensing	8,192	612	15,930	6,043
Global Operations (a)	(8,983)	(6,115)	(21,716)	(13,324)
Corporate and Eliminations (b)	(3,706)	(5,565)	7,688	5,857
	----------	-----------	-----------	------------
	$  86,282	80,407	102,008	129,330
	======	======	======	======

Total assets	July 1,     2012   -------------	June 26,     2011   -------------	Dec. 25,     2011     -------------
U.S. and Canada	$  5,476,742	4,818,551	5,225,099
International	1,845,126	1,742,702	2,062,928
Entertainment and Licensing	1,090,416	937,287	1,022,008
Global Operations	2,188,285	1,671,376	1,974,951
Corporate and Eliminations (b)	(6,585,848)	(5,229,171)	(6,154,212)
	--------------	--------------	--------------
	$  4,014,721	3,940,745	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 and six months ended July 1, 2012 and June 26, 2011.

	Quarter Ended ----------------------		Six Months Ended --------------------------
	July 1, 2012 -------	June 26, 2011 -------	July 1, 2012 -------	June 26, 2011 -------
Europe	$ 198,153	221,654	406,266	406,552
Latin America	82,779	72,226	121,748	103,924
Asia Pacific	79,561	80,591	122,208	118,327
	------------	------------	------------	----------
Net revenues	$ 360,493	374,471	650,222	628,803
	=======	=======	=======	=======

The following table presents consolidated net revenues by class of principal products for the quarters and six months ended July 1, 2012 and June 26, 2011.

	Quarter Ended		Six Months Ended
	July 1, 2012 ---------	June 26, 2011 ---------	July 1, 2012 ---------	June 26, 2011 ---------
Boys	$ 389,062	460,446	691,821	750,678
Games	213,830	231,272	395,746	431,624
Girls	104,191	119,143	197,427	232,299
Preschool	103,372	97,574	173,311	165,810
Other	1,012	19	2,012	29
	------------	------------	--------------	--------------
Net revenues	$ 811,467	908,454	1,460,317	1,580,440
	=======	=======	========	========