Segment Reporting

9 Months Ended

Sep. 30, 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 nine 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 nine months ended September 30, 2012 and September 25, 2011 are as follows.

	Quarter Ended
	------------------
	Sept. 30, 2012		Sept. 25, 2011
	-----------------		-----------------
	External	Affiliate	External	Affiliate
Net revenues	-----------	----------	-----------	---------
U.S. and Canada	$      774,539	1,814	764,562	4,554
International	524,144	110	563,310	9
Entertainment and Licensing	43,066	3,179	46,316	1,047
Global Operations (a)	3,388	578,528	1,623	635,081
Corporate and Eliminations	-	(583,631)	-	(640,691)
	------------	------------	------------	------------
	$   1,345,137	-	1,375,811	-
	=======	=======	=======	=======

	Nine Months Ended
	------------------
	Sept. 30, 2012		Sept. 25, 2011
	-----------------		-----------------
	External	Affiliate	External	Affiliate
Net revenues	-----------	----------	-----------	---------
U.S. and Canada	$   1,510,112	4,076	1,660,664	13,738
International	1,174,366	285	1,192,113	108
Entertainment and Licensing	115,618	6,009	98,144	1,735
Global Operations (a)	5,358	1,134,727	5,330	1,240,428
Corporate and Eliminations	-	(1,145,097)	-	(1,256,009)
	------------	------------	------------	------------
	$   2,805,454	-	2,956,251	-
	=======	=======	=======	=======

	Quarter Ended ----------------------		Nine Months Ended --------------------------
Operating profit (loss)	Sept. 30, 2012 -------	Sept. 25, 2011 -------	Sept. 30, 2012 -------	Sept. 25, 2011 -------
U.S. and Canada	$   154,239	128,789	229,578	227,526
International	85,498	100,739	110,265	132,756
Entertainment and Licensing	10,722	15,251	26,652	21,294
Global Operations (a)	8,720	8,802	(12,996)	(4,522)
Corporate and Eliminations (b)	(9,557)	(5,509)	(1,869)	348
	----------	-----------	-----------	------------
	$   249,622	248,072	351,630	377,402
	======	======	======	======

Total assets	Sept. 30,     2012   -------------	Sept. 25,     2011   -------------	Dec. 25,     2011     -------------
U.S. and Canada	$     5,888,392	5,159,977	5,225,099
International	2,161,186	1,969,676	2,062,928
Entertainment and Licensing	1,127,569	1,003,345	1,022,008
Global Operations	2,336,528	1,832,306	1,974,951
Corporate and Eliminations (b)	(7,067,388)	(5,880,578)	(6,154,212)
	--------------	--------------	--------------
	$     4,446,287	4,084,726	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 nine months ended September 30, 2012 and September 25, 2011.

	Quarter Ended ----------------------		Nine Months Ended --------------------------
	Sept. 30, 2012 -------	Sept. 25, 2011 -------	Sept. 30, 2012 -------	Sept. 25, 2011 -------
Europe	$ 345,281	383,734	751,547	790,286
Latin America	115,342	105,696	237,090	209,620
Asia Pacific	63,521	73,880	185,729	192,207
	------------	------------	------------	------------
Net revenues	$ 524,144	563,310	1,174,366	1,192,113
	=======	=======	=======	=======

The following table presents consolidated net revenues by class of principal products for the quarters and nine months ended September 30, 2012 and September 25, 2011. Effective for the second half of fiscal 2012, the Company has reclassified certain of its products from the Other category to the Boys and Games categories. The table below presents the 2011 net revenues reclassified to reflect the 2012 product category classifications.

	Quarter Ended ----------------------		Nine Months Ended --------------------------
	Sept. 30, 2012 ---------	Sept. 25, 2011 ---------	Sept. 30, 2012 ---------	Sept. 25, 2011 ---------
Boys	$    471,125	534,595	1,162,958	1,285,273
Games	365,714	364,740	763,460	796,393
Girls	302,304	259,113	499,731	491,412
Preschool	205,994	217,363	379,305	383,173
	------------	------------	--------------	--------------
Net revenues	$ 1,345,137	1,375,811	2,805,454	2,956,251
	=======	=======	========	========