Rhode Island
|
05-0155090
|
(State of Incorporation)
|
(I.R.S. Employer Identification No.)
|
1027 Newport Avenue, Pawtucket, Rhode Island 02862
|
(Address of Principal Executive Offices, Including Zip Code)
|
|
(401) 431-8697
|
(Registrant's Telephone Number, Including Area Code)
|
PART I. FINANCIAL INFORMATION
|
HASBRO, INC. AND SUBSIDIARIES
|
Consolidated Balance Sheets
|
(Thousands of Dollars Except Share Data)
|
(Unaudited)
|
|
||||||||||||
|
June 30, 2013
|
July 1, 2012
|
December 30, 2012
|
|||||||||
ASSETS
|
||||||||||||
Current assets
|
||||||||||||
Cash and cash equivalents
|
$
|
1,022,345
|
779,931
|
849,701
|
||||||||
Accounts receivable, less allowance for doubtful accounts of $20,500, $24,300 and $19,600
|
640,503
|
651,410
|
1,029,959
|
|||||||||
Inventories
|
359,969
|
416,905
|
316,049
|
|||||||||
Prepaid expenses and other current assets
|
343,385
|
297,580
|
312,493
|
|||||||||
Total current assets
|
2,366,202
|
2,145,826
|
2,508,202
|
|||||||||
|
||||||||||||
Property, plant and equipment, less accumulated depreciation of $496,800, $472,000 and $481,500
|
237,774
|
223,383
|
230,414
|
|||||||||
|
||||||||||||
Other assets
|
||||||||||||
Goodwill
|
474,773
|
474,608
|
474,925
|
|||||||||
Other intangibles, less accumulated amortization of $690,100, $638,300 and $666,700
|
393,206
|
445,073
|
416,659
|
|||||||||
Other
|
706,344
|
725,831
|
695,187
|
|||||||||
Total other assets
|
1,574,323
|
1,645,512
|
1,586,771
|
|||||||||
|
||||||||||||
Total assets
|
$
|
4,178,299
|
4,014,721
|
4,325,387
|
HASBRO, INC. AND SUBSIDIARIES
|
Consolidated Balance Sheets (continued)
|
(Thousands of Dollars Except Share Data)
|
(Unaudited)
|
|
||||||||||||
|
June 30, 2013
|
July 1, 2012
|
December 30, 2012
|
|||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
|
||||||||||||
Current liabilities
|
||||||||||||
Short-term borrowings
|
$
|
192,918
|
220,605
|
224,365
|
||||||||
Current portion of long-term debt
|
432,458
|
-
|
-
|
|||||||||
Accounts payable
|
199,784
|
161,785
|
139,906
|
|||||||||
Accrued liabilities
|
471,562
|
456,303
|
596,164
|
|||||||||
Total current liabilities
|
1,296,722
|
838,693
|
960,435
|
|||||||||
|
||||||||||||
Long-term debt
|
959,895
|
1,399,557
|
1,396,421
|
|||||||||
Other liabilities
|
465,656
|
376,981
|
461,152
|
|||||||||
Total liabilities
|
2,722,273
|
2,615,231
|
2,818,008
|
|||||||||
|
||||||||||||
Shareholders' equity
|
||||||||||||
Preference stock of $2.50 par value. Authorized 5,000,000 shares; none issued
|
-
|
-
|
-
|
|||||||||
Common stock of $.50 par value. Authorized 600,000,000 shares; issued 209,694,630
|
104,847
|
104,847
|
104,847
|
|||||||||
Additional paid-in capital
|
694,771
|
641,012
|
655,943
|
|||||||||
Retained earnings
|
3,280,215
|
3,152,647
|
3,354,545
|
|||||||||
Accumulated other comprehensive loss
|
(77,866
|
)
|
(39,643
|
)
|
(72,307
|
)
|
||||||
Treasury stock, at cost; 79,718,124 shares at June 30, 2013, 79,440,495 at July 1, 2012 and 80,754,417 at December 30, 2012
|
(2,545,941
|
)
|
(2,459,373
|
)
|
(2,535,649
|
)
|
||||||
Total shareholders' equity
|
1,456,026
|
1,399,490
|
1,507,379
|
|||||||||
|
||||||||||||
Total liabilities and shareholders' equity
|
$
|
4,178,299
|
4,014,721
|
4,325,387
|
HASBRO, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Thousands of Dollars Except Per Share Data)
(Unaudited)
|
||||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
|
Quarter Ended
|
Six Months Ended
|
||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
June 30, 2013
|
July 1, 2012
|
||||||||||||
Net revenues
|
$
|
766,342
|
811,467
|
1,430,036
|
1,460,317
|
|||||||||||
Costs and expenses:
|
||||||||||||||||
Cost of sales
|
300,570
|
311,984
|
568,142
|
569,020
|
||||||||||||
Royalties
|
50,229
|
70,893
|
99,621
|
123,327
|
||||||||||||
Product development
|
47,904
|
50,113
|
95,089
|
95,039
|
||||||||||||
Advertising
|
73,657
|
79,297
|
140,791
|
144,342
|
||||||||||||
Amortization of intangibles
|
12,037
|
11,501
|
23,453
|
22,156
|
||||||||||||
Program production cost amortization
|
10,309
|
10,018
|
16,032
|
13,156
|
||||||||||||
Selling, distribution and administration
|
197,548
|
191,379
|
402,193
|
391,269
|
||||||||||||
Total costs and expenses
|
692,254
|
725,185
|
1,345,321
|
1,358,309
|
||||||||||||
Operating profit
|
74,088
|
86,282
|
84,715
|
102,008
|
||||||||||||
Non-operating (income) expense:
|
||||||||||||||||
Interest expense
|
22,225
|
22,413
|
45,204
|
45,525
|
||||||||||||
Interest income
|
(1,432
|
)
|
(1,689
|
)
|
(2,913
|
)
|
(4,164
|
)
|
||||||||
Other (income) expense, net
|
2,219
|
5,899
|
7,841
|
5,854
|
||||||||||||
Total non-operating expense, net
|
23,012
|
26,623
|
50,132
|
47,215
|
||||||||||||
Earnings before income taxes
|
51,076
|
59,659
|
34,583
|
54,793
|
||||||||||||
Income tax expense
|
14,596
|
16,232
|
4,774
|
13,945
|
||||||||||||
Net earnings
|
$
|
36,480
|
43,427
|
29,809
|
40,848
|
|||||||||||
|
||||||||||||||||
Net earnings per common share:
|
||||||||||||||||
Basic
|
$
|
0.28
|
0.33
|
0.23
|
0.31
|
|||||||||||
Diluted
|
$
|
0.28
|
0.33
|
0.23
|
0.31
|
|||||||||||
Cash dividends declared per common share
|
$
|
0.40
|
0.36
|
0.80
|
0.72
|
HASBRO, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Earnings
(Thousands of Dollars)
(Unaudited)
|
||||||||||||||||
|
||||||||||||||||
|
||||||||||||||||
|
Quarter Ended
|
Six Months Ended
|
||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
June 30, 2013
|
July 1, 2012
|
||||||||||||
Net earnings
|
$
|
36,480
|
43,427
|
29,809
|
40,848
|
|||||||||||
Other comprehensive earnings (loss):
|
||||||||||||||||
Foreign currency translation adjustments
|
(14,525
|
)
|
(30,173
|
)
|
(21,873
|
)
|
(7,907
|
)
|
||||||||
Net gains on cash flow hedging activities, net of tax
|
1,606
|
16,252
|
12,382
|
6,963
|
||||||||||||
Reclassifications to earnings, net of tax:
|
||||||||||||||||
Net gains on cash flow hedging activities
|
(498
|
)
|
(1,492
|
)
|
(1,040
|
)
|
(2,756
|
)
|
||||||||
Unrecognized pension and postretirement amounts
|
3,717
|
-
|
4,972
|
-
|
||||||||||||
Total other comprehensive loss, net of tax
|
(9,700
|
)
|
(15,413
|
)
|
(5,559
|
)
|
(3,700
|
)
|
||||||||
Total comprehensive earnings
|
$
|
26,780
|
28,014
|
24,250
|
37,148
|
HASBRO, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Thousands of Dollars)
(Unaudited)
|
||||||||
|
Six Months Ended
|
|||||||
|
June 30, 2013
|
July 1, 2012
|
||||||
Cash flows from operating activities:
|
||||||||
Net earnings
|
$
|
29,809
|
40,848
|
|||||
Adjustments to reconcile net earnings to net cash provided by operating activities:
|
||||||||
Depreciation of plant and equipment
|
43,181
|
43,739
|
||||||
Amortization of intangibles
|
23,453
|
22,156
|
||||||
Program production cost amortization
|
16,032
|
13,156
|
||||||
Deferred income taxes
|
(9,362
|
)
|
912
|
|||||
Stock-based compensation
|
12,001
|
12,557
|
||||||
Change in operating assets and liabilities:
|
||||||||
Decrease in accounts receivable
|
360,737
|
391,369
|
||||||
Increase in inventories
|
(52,585
|
)
|
(86,533
|
)
|
||||
Decrease (increase) in prepaid expenses and other current assets
|
3,132
|
(59,683
|
)
|
|||||
Program production costs
|
(23,490
|
)
|
(25,085
|
)
|
||||
Decrease in accounts payable and accrued liabilities
|
(105,267
|
)
|
(159,804
|
)
|
||||
Other, including long-term advances
|
495
|
7,149
|
||||||
Net cash provided by operating activities
|
298,136
|
200,781
|
||||||
Cash flows from investing activities:
|
||||||||
Additions to property, plant and equipment
|
(53,555
|
)
|
(50,084
|
)
|
||||
Other
|
4,459
|
5,941
|
||||||
Net cash utilized by investing activities
|
(49,096
|
)
|
(44,143
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net (repayments of) proceeds from short-term borrowings
|
(31,147
|
)
|
39,756
|
|||||
Purchases of common stock
|
(55,932
|
)
|
(9,926
|
)
|
||||
Stock option transactions
|
62,465
|
33,422
|
||||||
Excess tax benefits from stock-based compensation
|
9,600
|
7,980
|
||||||
Dividends paid
|
(52,125
|
)
|
(85,317
|
)
|
||||
Net cash utilized by financing activities
|
(67,139
|
)
|
(14,085
|
)
|
||||
Effect of exchange rate changes on cash
|
(9,257
|
)
|
(4,310
|
)
|
||||
Increase in cash and cash equivalents
|
172,644
|
138,243
|
||||||
Cash and cash equivalents at beginning of year
|
849,701
|
641,688
|
||||||
Cash and cash equivalents at end of period
|
$
|
1,022,345
|
779,931
|
|||||
|
||||||||
Supplemental information
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
45,128
|
47,213
|
|||||
Income taxes
|
$
|
32,738
|
40,066
|
|
||||||||||||||||
|
2013
|
2012
|
||||||||||||||
Quarter
|
Basic
|
Diluted
|
Basic
|
Diluted
|
||||||||||||
Net earnings
|
$
|
36,480
|
36,480
|
43,427
|
43,427
|
|||||||||||
|
||||||||||||||||
Average shares outstanding
|
130,323
|
130,323
|
130,294
|
130,294
|
||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Options and other share-based awards
|
-
|
1,657
|
-
|
1,824
|
||||||||||||
Equivalent Shares
|
130,323
|
131,980
|
130,294
|
132,118
|
||||||||||||
|
||||||||||||||||
Net earnings per common share
|
$
|
0.28
|
0.28
|
0.33
|
0.33
|
|
||||||||||||||||
|
2013
|
2012
|
||||||||||||||
Six Months
|
Basic
|
Diluted
|
Basic
|
Diluted
|
||||||||||||
Net earnings
|
$
|
29,809
|
29,809
|
40,848
|
40,848
|
|||||||||||
|
||||||||||||||||
Average shares outstanding
|
129,831
|
129,831
|
129,918
|
129,918
|
||||||||||||
Effect of dilutive securities:
|
||||||||||||||||
Options and other share-based awards
|
-
|
1,606
|
-
|
1,907
|
||||||||||||
Equivalent Shares
|
129,831
|
131,437
|
129,918
|
131,825
|
||||||||||||
|
||||||||||||||||
Net earnings per common share
|
$
|
0.23
|
0.23
|
0.31
|
0.31
|
|
Pension and Postretirement Amounts
|
Gains (Losses) on Derivative Instruments
|
Foreign Currency Translation Adjustments
|
Total Accumulated Other Comprehensive Earnings (Loss)
|
||||||||||||
2013
|
||||||||||||||||
Balance at Dec. 30, 2012
|
$
|
(120,422
|
)
|
(1,008
|
)
|
49,123
|
(72,307
|
)
|
||||||||
Current period other comprehensive earnings (loss)
|
4,972
|
11,342
|
(21,873
|
)
|
(5,559
|
)
|
||||||||||
Balance at June 30, 2013
|
$
|
(115,450
|
)
|
10,334
|
27,250
|
(77,866
|
)
|
|||||||||
|
||||||||||||||||
2012
|
||||||||||||||||
Balance at Dec. 25, 2011
|
$
|
(86,822
|
)
|
10,081
|
40,798
|
(35,943
|
)
|
|||||||||
Current period other comprehensive earnings (loss)
|
-
|
4,207
|
(7,907
|
)
|
(3,700
|
)
|
||||||||||
Balance at July 1, 2012
|
$
|
(86,822
|
)
|
14,288
|
32,891
|
(39,643
|
)
|
|
June 30, 2013
|
July 1, 2012
|
December 30, 2012
|
|||||||||||||||||||||
|
Carrying
Cost
|
Fair
Value
|
Carrying
Cost
|
Fair
Value
|
Carrying
Cost
|
Fair
Value
|
||||||||||||||||||
6.35% Notes Due 2040
|
$
|
500,000
|
548,600
|
500,000
|
582,250
|
500,000
|
615,650
|
|||||||||||||||||
6.125% Notes Due 2014
|
432,458
|
443,445
|
439,662
|
460,020
|
436,526
|
455,175
|
||||||||||||||||||
6.30% Notes Due 2017
|
350,000
|
401,520
|
350,000
|
400,015
|
350,000
|
399,700
|
||||||||||||||||||
6.60% Debentures
Due 2028
|
109,895
|
124,049
|
109,895
|
123,038
|
109,895
|
129,687
|
||||||||||||||||||
Total long-term debt
|
1,392,353
|
1,517,614
|
1,399,557
|
1,565,323
|
1,396,421
|
1,600,212
|
||||||||||||||||||
Less: Current portion
|
432,458
|
443,445
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Long-term debt excluding current portion
|
$
|
959,895
|
1,074,169
|
1,399,557
|
1,565,323
|
1,396,421
|
1,600,212
|
|
Fair Value Measurements Using:
|
|||||||||||||||
|
Fair
Value
|
Quoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
June 30, 2013
|
||||||||||||||||
Assets:
|
||||||||||||||||
Available-for-sale securities
|
$
|
23,641
|
8
|
18,244
|
5,389
|
|||||||||||
Derivatives
|
16,890
|
-
|
15,900
|
990
|
||||||||||||
Total assets
|
$
|
40,531
|
8
|
34,144
|
6,379
|
|||||||||||
|
||||||||||||||||
Liabilities:
|
||||||||||||||||
Derivatives
|
$
|
1,235
|
-
|
1,235
|
-
|
|||||||||||
|
||||||||||||||||
July 1, 2012
|
||||||||||||||||
Assets:
|
||||||||||||||||
Available-for-sale securities
|
$
|
19,871
|
12
|
19,859
|
-
|
|||||||||||
Derivatives
|
33,045
|
-
|
29,719
|
3,326
|
||||||||||||
Total assets
|
$
|
52,916
|
12
|
49,578
|
3,326
|
|||||||||||
|
||||||||||||||||
Liabilities:
|
||||||||||||||||
Derivatives
|
$
|
765
|
-
|
765
|
-
|
|||||||||||
|
||||||||||||||||
December 30, 2012
|
||||||||||||||||
Assets:
|
||||||||||||||||
Available-for-sale securities
|
$
|
24,099
|
8
|
18,986
|
5,105
|
|||||||||||
Derivatives
|
4,254
|
-
|
1,741
|
2,513
|
||||||||||||
Total assets
|
$
|
28,353
|
8
|
20,727
|
7,618
|
|||||||||||
|
||||||||||||||||
Liabilities:
|
||||||||||||||||
Derivatives
|
$
|
3,461
|
-
|
3,461
|
-
|
|
2013
|
2012
|
||||||
Balance at beginning of year
|
$
|
7,618
|
3,724
|
|||||
Loss from change in fair value
|
(1,239
|
)
|
(398
|
)
|
||||
Balance at end of second quarter
|
$
|
6,379
|
3,326
|
|
Quarter Ended
|
|||||||||||||||
|
Pension
|
Postretirement
|
||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
June 30, 2013
|
July 1, 2012
|
||||||||||||
Service cost
|
$
|
1,508
|
1,081
|
187
|
184
|
|||||||||||
Interest cost
|
4,803
|
5,052
|
345
|
440
|
||||||||||||
Expected return on assets
|
(5,550
|
)
|
(5,232
|
)
|
-
|
-
|
||||||||||
Net amortization and deferrals
|
2,396
|
1,761
|
(65
|
)
|
20
|
|||||||||||
Curtailment/settlement losses
|
2,462
|
-
|
-
|
-
|
||||||||||||
Net periodic benefit cost
|
$
|
5,619
|
2,662
|
467
|
644
|
|
Six Months Ended
|
|||||||||||||||
|
Pension
|
Postretirement
|
||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
June 30, 2013
|
July 1, 2012
|
||||||||||||
Service cost
|
$
|
3,010
|
2,279
|
375
|
368
|
|||||||||||
Interest cost
|
9,598
|
10,546
|
690
|
880
|
||||||||||||
Expected return on assets
|
(11,091
|
)
|
(10,903
|
)
|
-
|
-
|
||||||||||
Net amortization and deferrals
|
4,788
|
3,669
|
(130
|
)
|
40
|
|||||||||||
Curtailment/settlement losses
|
5,421
|
-
|
-
|
-
|
||||||||||||
Net periodic benefit cost
|
$
|
11,726
|
5,591
|
935
|
1,288
|
|
||||||||||||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
December 30, 2012
|
|||||||||||||||||||||
Hedged transaction
|
Notional Amount
|
Fair
Value
|
Notional
Amount
|
Fair
Value
|
Notional
Amount
|
Fair
Value
|
||||||||||||||||||
Inventory purchases
|
$
|
342,616
|
8,295
|
374,658
|
13,387
|
397,770
|
(2,638
|
)
|
||||||||||||||||
Intercompany royalty
transactions
|
118,116
|
2,154
|
126,276
|
4,272
|
131,693
|
(1,168
|
)
|
|||||||||||||||||
Sales
|
112,278
|
4,193
|
85,693
|
(2,840
|
)
|
92,761
|
2,458
|
|||||||||||||||||
Other
|
25,102
|
(349
|
)
|
18,131
|
19
|
2,420
|
(45
|
)
|
||||||||||||||||
Total
|
$
|
598,112
|
14,293
|
604,758
|
14,838
|
624,644
|
(1,393
|
)
|
|
June 30, 2013
|
July 1, 2012
|
Dec. 30, 2012
|
|||||||||
Prepaid expenses and other current assets
|
||||||||||||
Unrealized gains
|
$
|
13,907
|
14,113
|
2,802
|
||||||||
Unrealized losses
|
(1,540
|
)
|
(4,250
|
)
|
(1,073
|
)
|
||||||
Net unrealized gain
|
12,367
|
9,863
|
1,729
|
|||||||||
|
||||||||||||
Other assets
|
||||||||||||
Unrealized gains
|
1,926
|
5,066
|
12
|
|||||||||
Unrealized losses
|
-
|
(70
|
)
|
-
|
||||||||
Net unrealized gain
|
1,926
|
4,996
|
12
|
|||||||||
|
||||||||||||
Total asset derivatives
|
$
|
14,293
|
14,859
|
1,741
|
||||||||
|
||||||||||||
Accrued liabilities
|
||||||||||||
Unrealized gains
|
$
|
1
|
3
|
1,466
|
||||||||
Unrealized losses
|
(1
|
)
|
(18
|
)
|
(4,245
|
)
|
||||||
Net unrealized loss
|
-
|
(15
|
)
|
(2,779
|
)
|
|||||||
|
||||||||||||
Other liabilities
|
||||||||||||
Unrealized gains
|
-
|
-
|
20
|
|||||||||
Unrealized losses
|
-
|
(6
|
)
|
(375
|
)
|
|||||||
Net unrealized loss
|
-
|
(6
|
)
|
(355
|
)
|
|||||||
|
||||||||||||
Total liability derivatives
|
$
|
-
|
(21
|
)
|
(3,134
|
)
|
|
Quarter Ended
|
Six Months Ended
|
||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
June 30, 2013
|
July 1, 2012
|
||||||||||||
Statements of Operations Classification
|
||||||||||||||||
Cost of sales
|
$
|
(306
|
)
|
1,675
|
36
|
2,941
|
||||||||||
Royalties
|
97
|
864
|
(44
|
)
|
1,006
|
|||||||||||
Sales
|
1,060
|
(644
|
)
|
1,535
|
(643
|
)
|
||||||||||
Net realized gains
|
$
|
851
|
1,895
|
1,527
|
3,304
|
|
June 30, 2013
|
July 1, 2012
|
Dec. 30, 2012
|
|||||||||
Prepaid expenses and other current assets
|
||||||||||||
Unrealized gains
|
$
|
1,625
|
720
|
-
|
||||||||
Unrealized losses
|
(18
|
)
|
(522
|
)
|
-
|
|||||||
Net unrealized gain
|
1,607
|
198
|
-
|
|||||||||
|
||||||||||||
Accrued liabilities
|
||||||||||||
Unrealized gains
|
-
|
-
|
469
|
|||||||||
Unrealized losses
|
-
|
-
|
(796
|
)
|
||||||||
Net unrealized loss
|
-
|
-
|
(327
|
)
|
||||||||
|
||||||||||||
Other liabilities
|
||||||||||||
Net unrealized loss
|
(1,235
|
)
|
(744
|
)
|
-
|
|||||||
|
||||||||||||
Total unrealized gain (loss), net
|
$
|
372
|
(546
|
)
|
(327
|
)
|
Balance at December 30, 2012
|
$
|
34,888
|
||
2013 Charges
|
24,238
|
|||
Payments
|
(16,145
|
)
|
||
Balance at June 30, 2013
|
$
|
42,981
|
|
Quarter Ended
|
|||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
||||||||||||||
Net revenues
|
External
|
Affiliate
|
External
|
Affiliate
|
||||||||||||
U.S. and Canada
|
$
|
389,243
|
1,065
|
406,588
|
1,294
|
|||||||||||
International
|
340,176
|
26
|
360,493
|
26
|
||||||||||||
Entertainment and Licensing
|
35,336
|
3,301
|
43,216
|
1,513
|
||||||||||||
Global Operations (a)
|
1,587
|
291,699
|
1,170
|
298,500
|
||||||||||||
Corporate and Eliminations
|
-
|
(296,091
|
)
|
-
|
(301,333
|
)
|
||||||||||
|
$
|
766,342
|
-
|
811,467
|
-
|
|
Six Months Ended
|
|||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
||||||||||||||
Net revenues
|
External
|
Affiliate
|
External
|
Affiliate
|
||||||||||||
U.S. and Canada
|
$
|
731,302
|
2,094
|
735,573
|
2,262
|
|||||||||||
International
|
629,989
|
225
|
650,222
|
175
|
||||||||||||
Entertainment and Licensing
|
66,110
|
5,522
|
72,552
|
2,830
|
||||||||||||
Global Operations (a)
|
2,635
|
505,985
|
1,970
|
556,199
|
||||||||||||
Corporate and Eliminations
|
-
|
(513,826
|
)
|
-
|
(561,466
|
)
|
||||||||||
|
$
|
1,430,036
|
-
|
1,460,317
|
-
|
|
Quarter Ended
|
Six Months Ended
|
||||||||||||||
Operating profit (loss)
|
June 30, 2013
|
July 1, 2012
|
June 30, 2013
|
July 1, 2012
|
||||||||||||
U.S. and Canada
|
$
|
59,004
|
60,928
|
96,747
|
75,339
|
|||||||||||
International
|
14,793
|
29,851
|
10,288
|
24,767
|
||||||||||||
Entertainment and Licensing
|
3,712
|
8,192
|
8,997
|
15,930
|
||||||||||||
Global Operations (a)
|
(4,357
|
)
|
(8,983
|
)
|
(13,940
|
)
|
(21,716
|
)
|
||||||||
Corporate and Eliminations (b)
|
936
|
(3,706
|
)
|
(17,377
|
)
|
7,688
|
||||||||||
|
$
|
74,088
|
86,282
|
84,715
|
102,008
|
Total assets
|
June 30, 2013
|
July 1, 2012
|
Dec. 30, 2012
|
|||||||||
U.S. and Canada
|
$
|
6,220,141
|
5,476,742
|
6,041,893
|
||||||||
International
|
1,915,951
|
1,845,126
|
2,176,021
|
|||||||||
Entertainment and Licensing
|
1,206,380
|
1,090,416
|
1,164,715
|
|||||||||
Global Operations
|
2,626,250
|
2,188,285
|
2,493,976
|
|||||||||
Corporate and Eliminations (b)
|
(7,790,423
|
)
|
(6,585,848
|
)
|
(7,551,218
|
)
|
||||||
|
$
|
4,178,299
|
4,014,721
|
4,325,387
|
|
Quarter Ended
|
Six Months Ended
|
||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
June 30, 2013
|
July 1, 2012
|
||||||||||||
U.S. and Canada
|
$
|
-
|
-
|
-
|
2,444
|
|||||||||||
International
|
-
|
-
|
-
|
1,628
|
||||||||||||
Entertainment and Licensing
|
-
|
-
|
1,729
|
555
|
||||||||||||
Global Operations
|
-
|
-
|
-
|
4,307
|
||||||||||||
Corporate and Eliminations
|
2,462
|
-
|
29,659
|
2,196
|
||||||||||||
Total Charges
|
$
|
2,462
|
-
|
31,388
|
11,130
|
|
Quarter Ended
|
Six Months Ended
|
||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
June 30, 2013
|
July 1, 2012
|
||||||||||||
Europe
|
$
|
185,860
|
198,153
|
378,449
|
406,266
|
|||||||||||
Latin America
|
82,816
|
82,779
|
128,529
|
121,748
|
||||||||||||
Asia Pacific
|
71,500
|
79,561
|
123,011
|
122,208
|
||||||||||||
Net revenues
|
$
|
340,176
|
360,493
|
629,989
|
650,222
|
|
Quarter Ended
|
Six Months Ended
|
||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
June 30, 2013
|
July 1, 2012
|
||||||||||||
Boys
|
$
|
253,684
|
389,062
|
496,480
|
691,821
|
|||||||||||
Games
|
255,409
|
214,842
|
486,324
|
397,758
|
||||||||||||
Girls
|
149,419
|
104,191
|
264,193
|
197,427
|
||||||||||||
Preschool
|
107,830
|
103,372
|
183,039
|
173,311
|
||||||||||||
Net revenues
|
$
|
766,342
|
811,467
|
1,430,036
|
1,460,317
|
|
Quarter Ended
|
Six Months Ended
|
||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
June 30, 2013
|
July 1, 2012
|
||||||||||||
Net revenues
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
100.0
|
%
|
||||||||
Costs and expenses:
|
||||||||||||||||
Cost of sales
|
39.2
|
38.5
|
39.7
|
39.0
|
||||||||||||
Royalties
|
6.6
|
8.7
|
7.0
|
8.4
|
||||||||||||
Product development
|
6.2
|
6.2
|
6.6
|
6.5
|
||||||||||||
Advertising
|
9.6
|
9.8
|
9.9
|
9.9
|
||||||||||||
Amortization of intangibles
|
1.6
|
1.4
|
1.7
|
1.5
|
||||||||||||
Program production cost amortization
|
1.3
|
1.2
|
1.1
|
0.9
|
||||||||||||
Selling, distribution and administration
|
25.8
|
23.6
|
28.1
|
26.8
|
||||||||||||
Operating profit
|
9.7
|
10.6
|
5.9
|
7.0
|
||||||||||||
Interest expense
|
2.9
|
2.7
|
3.2
|
3.1
|
||||||||||||
Interest income
|
(0.2
|
)
|
(0.2
|
)
|
(0.2
|
)
|
(0.3
|
)
|
||||||||
Other (income) expense, net
|
0.3
|
0.7
|
0.5
|
0.4
|
||||||||||||
Earnings before income taxes
|
6.7
|
7.4
|
2.4
|
3.8
|
||||||||||||
Income tax expense
|
1.9
|
2.0
|
0.3
|
1.0
|
||||||||||||
Net earnings
|
4.8
|
%
|
5.4
|
%
|
2.1
|
%
|
2.8
|
%
|
|
Quarter Ended
|
Six Months Ended
|
||||||||||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
%
Change
|
June 30, 2013
|
July 1, 2012
|
%
Change
|
||||||||||||||||||
Boys
|
$
|
253,684
|
389,062
|
-35
|
%
|
496,480
|
691,821
|
-28
|
%
|
|||||||||||||||
Games
|
255,409
|
214,842
|
19
|
%
|
486,324
|
397,758
|
22
|
%
|
||||||||||||||||
Girls
|
149,419
|
104,191
|
43
|
%
|
264,193
|
197,427
|
34
|
%
|
||||||||||||||||
Preschool
|
107,830
|
103,372
|
4
|
%
|
183,039
|
173,311
|
6
|
%
|
||||||||||||||||
Net revenues
|
$
|
766,342
|
811,467
|
1,430,036
|
1,460,317
|
|
Quarter Ended
|
Six Months Ended
|
||||||||||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
% Change
|
June 30, 2013
|
July 1, 2012
|
% Change
|
||||||||||||||||||
Net Revenues
|
||||||||||||||||||||||||
U.S. and Canada segment
|
$
|
389,243
|
406,588
|
-4
|
%
|
731,302
|
735,573
|
-1
|
%
|
|||||||||||||||
International segment
|
340,176
|
360,493
|
-6
|
%
|
629,989
|
650,222
|
-3
|
%
|
||||||||||||||||
Entertainment and Licensing segment
|
35,336
|
43,216
|
-18
|
%
|
66,110
|
72,552
|
-9
|
%
|
||||||||||||||||
|
||||||||||||||||||||||||
Operating Profit
|
||||||||||||||||||||||||
U.S. and Canada segment
|
$
|
59,004
|
60,928
|
-3
|
%
|
96,747
|
75,339
|
28
|
%
|
|||||||||||||||
International segment
|
14,793
|
29,851
|
-50
|
%
|
10,288
|
24,767
|
-58
|
%
|
||||||||||||||||
Entertainment and Licensing segment
|
3,712
|
8,192
|
-55
|
%
|
8,997
|
15,930
|
-44
|
%
|
|
Quarter Ended
|
Six Months Ended
|
||||||||||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
%
Change
|
June 30, 2013
|
July 1, 2012
|
% Change
|
||||||||||||||||||
Europe
|
$
|
185,860
|
198,153
|
-6
|
%
|
378,449
|
406,266
|
-7
|
%
|
|||||||||||||||
Latin America
|
82,816
|
82,779
|
0
|
%
|
128,529
|
121,748
|
6
|
%
|
||||||||||||||||
Asia Pacific
|
71,500
|
79,561
|
-10
|
%
|
123,011
|
122,208
|
1
|
%
|
||||||||||||||||
Net revenues
|
$
|
340,176
|
360,493
|
629,989
|
650,222
|
|
Quarter Ended
|
|
Six Months Ended
|
||||
|
June 30, 2013
|
|
July 1, 2012
|
|
June 30, 2013
|
|
July 1, 2012
|
Cost of sales
|
39.2%
|
|
38.5%
|
|
39.7%
|
|
39.0%
|
Royalties
|
6.6
|
|
8.7
|
|
7.0
|
|
8.4
|
Product development
|
6.2
|
|
6.2
|
|
6.6
|
|
6.5
|
Advertising
|
9.6
|
|
9.8
|
|
9.9
|
|
9.9
|
Amortization of intangibles
|
1.6
|
|
1.4
|
|
1.7
|
|
1.5
|
Program production cost amortization
|
1.3
|
|
1.2
|
|
1.1
|
|
0.9
|
Selling, distribution and administration
|
25.8
|
|
23.6
|
|
28.1
|
|
26.8
|
|
Quarter Ended
|
Six Months Ended
|
||||||||||||||
|
June 30, 2013
|
July 1, 2012
|
June 30, 2013
|
July 1, 2012
|
||||||||||||
Cost of sales
|
$
|
-
|
-
|
8,493
|
2,764
|
|||||||||||
Product development
|
-
|
-
|
3,515
|
2,479
|
||||||||||||
Selling, distribution and administration
|
2,462
|
-
|
19,380
|
5,887
|
||||||||||||
Total
|
$
|
2,462
|
-
|
31,388
|
11,130
|
·
|
the Company's ability to successfully re-imagine, re-invent and re-ignite its existing products and product lines, including through the use of immersive entertainment experiences, to maintain and further their success;
|
·
|
the Company's ability to successfully design, develop, produce and introduce innovative new brands, products and product lines which achieve and sustain interest from retailers and consumers and keep pace with changes in consumer preferences and lifestyles;
|
·
|
the Company's ability to offer products that expand consumer demand for its product offerings and do not significantly compete with the Company's existing product offerings;
|
·
|
the Company's ability to manufacture, source and ship new and continuing products in a timely and cost-effective manner and customers' and consumers' acceptance and purchase of those products in quantities and at prices that will be sufficient to profitably recover development, manufacturing, marketing, royalty and other costs;
|
·
|
recessions or other economic downturns affecting the U.S., Europe, or any of the Company's other major markets which can negatively impact the retail and credit markets, and the financial health of the Company's retail customers and consumers, and which can result in lower employment levels, less consumer disposable income, lower consumer confidence and, as a consequence, lower consumer spending, including lower spending on purchases of the Company's products;
|
·
|
potential difficulties or delays the Company may experience in implementing cost savings and efficiency enhancing initiatives, or the realization of fewer benefits than are expected from such initiatives;
|
·
|
currency fluctuations, including movements in foreign exchange rates, which can lower the Company's net revenues and earnings, and significantly impact the Company's costs;
|
·
|
other economic and public health conditions in the various markets in which the Company and its customers and suppliers operate throughout the world, which impact the Company's ability and cost to manufacture and deliver products, such as higher fuel and other commodity prices, higher labor costs, higher transportation costs, outbreaks of diseases which affect public health and the movement of people and goods, and other factors, including government regulations, which can create potential manufacturing and transportation delays or impact costs;
|
·
|
delays, increased costs or difficulties associated with the development and offering of media initiatives based on the Company's brands;
|
·
|
the concentration of the Company's retail customers, potentially increasing the negative impact to the Company of difficulties experienced by any of the Company's retail customers or changes by the Company's retail customers in their purchasing or selling patterns;
|
·
|
the Company's ability to generate sales during the fourth quarter, particularly during the relatively brief holiday shopping season, which is the period in which the Company derives a substantial portion of its revenues and earnings;
|
·
|
the inventory policies of the Company's retail customers, including the retailers' potential decisions to lower the inventories they are willing to carry, even if it results in lost sales, as well as the concentration of the Company's revenues in the second half and fourth quarter of the year, which coupled with reliance by retailers on quick response inventory management techniques, increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve compressed shipping schedules;
|
·
|
work stoppages, slowdowns or strikes, which may impact the Company's ability to manufacture or deliver product in a timely and cost-effective manner;
|
·
|
concentration of manufacturing of the substantial majority of the Company's products by third party vendors in the People's Republic of China and the associated impact to the Company of health conditions and other factors affecting social and economic activity in China, affecting the movement of people and products into and out of China, impacting the cost of producing products in China and the cost of exporting them to the Company's other markets or affecting the exchange rates for the Chinese Renminbi, including, without limitation, the impact of tariffs or other trade restrictions being imposed upon goods manufactured in China;
|
·
|
consumer interest in and acceptance of The Hub Network, the Company's cable television joint venture with Discovery Communications, the programming appearing on The Hub Network, products related to The Hub Network's programming, and other factors impacting the financial performance of The Hub Network;
|
·
|
consumer interest in and acceptance of programming and entertainment created by Hasbro Studios, as well as products related to Hasbro Studios' programming and entertainment;
|
·
|
the ability of the Company to hire and retain key officers and employees who are critical to the Company's success;
|
·
|
the costs of complying with product safety and consumer protection requirements worldwide, including the risk that greater regulation in the future may increase such costs, may require changes in the Company's products and/or may impact the Company's ability to sell some products in particular markets in the absence of making changes to such products;
|
·
|
the risk that one of the Company's third-party manufacturers will not comply with applicable labor, consumer protection, product safety or other laws or regulations, or with aspects of the Company's Global Business Ethics Principles, and that such noncompliance will not be promptly detected, either of which could cause damage to the Company's reputation, harm sales of its products and potentially create liability for the Company;
|
·
|
an adverse change in purchasing policies or promotional programs or the bankruptcy or other economic difficulties or lack of success of one or more of the Company's significant retailers comprising its relatively concentrated retail customer base, which could negatively impact the Company's revenues or bad debt exposure;
|
·
|
the risk that the market appeal of the Company's licensed products will be less than expected or that sales revenue generated by these products will be insufficient to cover the minimum guaranteed royalties;
|
·
|
the risk that the Company may face product recalls or product liability suits relating to products it manufactures or distributes which may have significant direct costs to the Company and which may also harm the reputation of the Company and its products, potentially harming future product sales;
|
·
|
the impact of competition on revenues, margins and other aspects of the Company's business, including the ability to secure, maintain and renew popular licenses and the ability to attract and retain employees in a competitive environment;
|
·
|
the risk that anticipated benefits of acquisitions may not occur or be delayed or reduced in their realization;
|
·
|
the Company's ability to obtain and enforce intellectual property rights both in the United States and other worldwide territories;
|
·
|
the risk that any litigation or arbitration disputes or regulatory investigations could entail significant expense and result in significant fines or other harm to the Company's business;
|
·
|
the Company's ability to maintain or obtain external financing on terms acceptable to it in order to meet working capital needs;
|
·
|
the risk that one or more of the counterparties to the Company's financing arrangements may experience financial difficulties or otherwise be unable or unwilling to allow the Company to access financing under such arrangements;
|
·
|
the Company's ability to generate sufficient available cash flow to service its outstanding debt;
|
·
|
restrictions that the Company is subject to under its credit agreement;
|
·
|
unforeseen circumstances, such as severe softness in or collapse of the retail environment that may result in a significant decline in revenues and operating results of the Company, thereby causing the Company to be in non-compliance with its debt covenants and the Company being unable to utilize borrowings under its revolving credit facility, a circumstance likely to occur when operating shortfalls would result in the Company being in the greatest need of such supplementary borrowings;
|
·
|
market conditions, third party actions or approvals, the impact of competition and other factors that could delay or increase the cost of implementation of the Company's programs, or alter the Company's actions and reduce actual results;
|
·
|
the risk that the Company may be subject to governmental sanctions for failure to comply with applicable regulations;
|
·
|
failure to operate our information systems and implement new technology effectively, as well as maintain the systems and processes designed to protect our electronic data;
|
·
|
the risk that the Company's reported goodwill may become impaired, requiring the Company to take a charge against its income; or
|
·
|
other risks and uncertainties as are or may be detailed from time to time in the Company's public announcements and filings with the SEC, such as filings on Forms 8-K, 10-Q and 10-K.
|
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds.
|
|
|
|
Period |
(a) Total Number of Shares (or Units) Purchased
|
(b) Average Price Paid per Share (or Unit)
|
(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs
|
(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
|
April 2013
4/1/13 – 4/28/13 |
-
|
-
|
-
|
$107,115,703
|
May 2013
4/29/13 – 6/2/13 |
401,650
|
$47.13
|
401,650
|
$88,184,342
|
June 2013
6/3/13 – 6/30/13
|
369,561
|
$44.40
|
369,561
|
$71,776,804
|
Total
|
771,211
|
$45.82
|
771,211
|
$71,776,804
|
|
||
Item 6. Exhibits.
|
||
|
||
|
3.1
|
Restated Articles of Incorporation of the Company. (Incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)
|
|
|
|
|
3.2
|
Amendment to Articles of Incorporation, dated June 28, 2000. (Incorporated by reference to Exhibit 3.4 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)
|
|
|
|
|
3.3
|
Amendment to Articles of Incorporation, dated May 19, 2003. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q for the period ended June 29, 2003, File No. 1-6682.)
|
|
|
|
|
3.4
|
Amended and Restated Bylaws of the Company, as amended. (Incorporated by reference to Exhibit 3(d) to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006, File No. 1-6682.)
|
|
|
|
|
3.5
|
Certificate of Designations of Series C Junior Participating Preference Stock of Hasbro, Inc. dated June 29, 1999. (Incorporated by reference to Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)
|
|
|
|
|
3.6
|
Certificate of Vote(s) authorizing a decrease of class or series of any class of shares. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No 1-6682.)
|
|
|
|
|
4.1
|
Indenture, dated as of July 17, 1998, by and between the Company and Citibank, N.A. as Trustee. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated July 14, 1998, File No. 1-6682.)
|
|
|
|
|
4.2
|
Indenture, dated as of March 15, 2000, by and between the Company and the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4(b)(i) to the Company's Annual Report on Form 10-K for the fiscal year ended December 26, 1999, File No. 1-6682.)
|
|
|
|
|
4.3
|
First Supplemental Indenture, dated as of September 17, 2007, between the Company and the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed September 17, 2007, File No. 1-6682.)
|
|
||
|
4.4
|
Second Supplemental Indenture, dated as of May 13, 2009, between the Company and the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 13, 2009, File No. 1-6682.)
|
|
|
|
|
4.5
|
Third Supplemental Indenture, dated as of March 11, 2010, between the Company and the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed March 11, 2010, File No. 1-6682.)
|
|
|
|
|
10.1
|
Form of Fair Market Value Stock Option Agreement under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan. (Applicable to Duncan Billing, John Frascotti, Wiebe Tinga and Deborah Thomas and certain other employees of the Company.)
|
|
|
|
|
10.2
|
Form of Fair Market Value Stock Option Agreement under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan.
|
|
|
|
|
10.3
|
Form of Contingent Stock Performance Award under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan. (Applicable to Duncan Billing, John Frascotti, Wiebe Tinga and Deborah Thomas and certain other employees of the Company.)
|
|
|
|
|
10.4
|
Form of Contingent Stock Performance Award for Brian Goldner under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan.
|
|
|
|
|
10.5
|
Form of Restricted Stock Unit Agreement under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan. (Applicable to Duncan Billing, John Frascotti, Wiebe Tinga and Deborah Thomas and certain other employees of the Company.)
|
|
|
|
|
10.6
|
Form of Restricted Stock Unit Agreement for Brian Goldner under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan.
|
|
|
|
|
10.7
|
Form of Non-Competition, Non-Solicitation and Confidentiality Agreement. (Applicable to Duncan Billing, John Frascotti, Wiebe Tinga and Deborah Thomas and certain other employees of the Company.)
|
|
|
|
|
31.1
|
Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
|
|
|
|
|
31.2
|
Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
|
|
|
|
|
32.1*
|
Certification of the Chief Executive Officer Pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934.
|
|
|
|
|
32.2*
|
Certification of the Chief Financial Officer Pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934.
|
|
|
|
|
101.INS
|
XBRL Instance Document
|
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document
|
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
* Furnished herewith.
|
|
HASBRO, INC.
|
|
(Registrant)
|
|
|
|
|
Date: July 31, 2013
|
By: /s/ Deborah Thomas
|
|
Deborah Thomas
|
|
|
|
Executive Vice President and
|
|
Chief Financial Officer
|
|
(Duly Authorized Officer and
|
|
Principal Financial Officer)
|
Exhibit
|
|
|
No.
|
Exhibits
|
|
|
|
|
|
|
|
3.1
|
Restated Articles of Incorporation of the Company. (Incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)
|
|
|
|
|
3.2
|
Amendment to Articles of Incorporation, dated June 28, 2000. (Incorporated by reference to Exhibit 3.4 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)
|
|
|
|
|
3.3
|
Amendment to Articles of Incorporation, dated May 19, 2003. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q for the period ended June 29, 2003, File No. 1-6682.)
|
|
|
|
|
3.4
|
Amended and Restated Bylaws of the Company, as amended. (Incorporated by reference to Exhibit 3(d) to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006, File No. 1-6682.)
|
|
|
|
|
3.5
|
Certificate of Designations of Series C Junior Participating Preference Stock of Hasbro, Inc. dated June 29, 1999. (Incorporated by reference to Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)
|
|
|
|
|
3.6
|
Certificate of Vote(s) authorizing a decrease of class or series of any class of shares. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No 1-6682.)
|
|
|
|
|
4.1
|
Indenture, dated as of July 17, 1998, by and between the Company and Citibank, N.A. as Trustee. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated July 14, 1998, File No. 1-6682.)
|
|
|
|
|
4.2
|
Indenture, dated as of March 15, 2000, by and between the Company and the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4(b)(i) to the Company's Annual Report on Form 10-K for the year ended December 26, 1999, File No. 1-6682.)
|
|
|
|
|
4.3
|
First Supplemental Indenture, dated as of September 17, 2007, between the Company and the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed September 17, 2007, File No. 1-6682.)
|
|
|
||
4.4
|
Second Supplemental Indenture, dated as of May 13, 2009, between the Company and the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 13, 2009, File No. 1-6682.)
|
|
|
|
|
4.5
|
Third Supplemental Indenture, dated as of March 11, 2010, between the Company and the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed March 11, 2010, File No. 1-6682.)
|
|
|
|
|
10.1
|
Form of Fair Market Value Stock Option Agreement under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan. (Applicable to Duncan Billing, John Frascotti, Wiebe Tinga and Deborah Thomas and certain other employees of the Company.)
|
|
|
|
|
10.2
|
Form of Fair Market Value Stock Option Agreement under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan.
|
|
|
|
|
10.3
|
Form of Contingent Stock Performance Award under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan. (Applicable to Duncan Billing, John Frascotti, Wiebe Tinga and Deborah Thomas and certain other employees of the Company.)
|
|
|
|
|
10.4
|
Form of Contingent Stock Performance for Brian Goldner Award under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan.
|
|
|
|
|
10.5
|
Form of Restricted Stock Unit Agreement under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan. (Applicable to Duncan Billing, John Frascotti, Wiebe Tinga and Deborah Thomas and certain other employees of the Company.)
|
|
|
|
|
10.6
|
Form of Restricted Stock Unit Agreement for Brian Goldner under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan.
|
|
|
|
|
10.7
|
Form of Non-Competition, Non-Solicitation and Confidentiality Agreement. (Applicable to Duncan Billing, John Frascotti, Wiebe Tinga and Deborah Thomas and certain other employees of the Company.)
|
|
|
|
|
31.1
|
Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
|
|
|
|
|
31.2
|
Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
|
|
|
|
|
32.1*
|
Certification of the Chief Executive Officer Pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934.
|
|
|
|
|
32.2*
|
Certification of the Chief Financial Officer Pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934.
|
|
|
|
|
101.INS
|
XBRL Instance Document
|
|
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
|
|
101.CAL
|
XBRL Taxonomy Calculation Linkbase Document
|
|
|
|
|
101.LAB
|
XBRL Taxonomy Extension Labels Linkbase Document
|
|
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
|
|
|
* Furnished herewith.
|
Period |
Cumulative
Percent of Option
Exercisable
|
|
[ ] to [ ] | 0% | |
[ ] to [ ] | 33 1/3% | |
[ ] to [ ] | 66 2/3% | |
[ ] to [ ] | 100% |
Period |
Cumulative
Percent of Option
Exercisable
|
|
[ ] to [ ] | 0% | |
[ ] to [ ] | 33 1/3% | |
[ ] to [ ] | 66 2/3% | |
[ ] to [ ] | 100% |
EPS | $[ ] | |
Revenue | $[ ] |
Cumulative
EPS
|
Achievement as a Percentage of Target
|
Percentage of Target Shares Earned
|
Cumulative
Revenues
(000,000's)
|
Achievement as a Percentage of Target
|
Percentage of Target Shares Earned
|
EPS | $[ ] | |
Revenue | $[ ] |
Cumulative
EPS
|
Achievement as a Percentage of Target
|
Percentage of Target Shares Earned
|
Cumulative
Revenues
(000,000's)
|
Achievement as a Percentage of Target
|
Percentage of Target Shares Earned
|
Company's Relative TSR Performance as compared
to the S&P 500 Index over the Performance Period
|
Award Multiplier
|
≥75th percentile of companies in the S&P 500 Index
|
2.0x Award Otherwise Earned
|
≥ 65th percentile but <75th percentile
|
1.5x Award Otherwise Earned
|
≥ 25th percentile but <65th percentile
|
1.0x Award Otherwise Earned
|
<25th percentile
|
0.75x Award Otherwise Earned
|
Stock Price Hurdle |
Percentage of Shares
Subject to Hurdle
|
|
$45 | 25% | |
$52 | 25% | |
$56 | 25% | |
$60 | 25% |
(a)
|
You will always preserve as confidential all Confidential Information, and will never use it for your own benefit or for the benefit of others.
|
(b)
|
You will not disclose, divulge, or communicate Confidential Information to any unauthorized person, business or corporation during or after the termination of your employment with the Company. You will use your best efforts and exercise due diligence to protect, to not disclose and to keep as confidential all Confidential Information.
|
(c)
|
You will abide by all applicable Company written policies and procedures regarding data or information security.
|
(d)
|
Upon the earlier of request or termination of employment, you agree to return to the Company, or if so directed by the Company, destroy any and all copies of materials in your possession containing Confidential Information.
|
(a)
|
In consideration of the Award, you agree that while employed by Hasbro (including any of its affiliates) and for a period of one (1) year after your Date of Termination (as defined below) (including any of its affiliates), you will not, in the geographical area in which Hasbro or any of its affiliates does business or has done business, engage in any business or enterprise that would be competitive with any business of Hasbro in existence as of the Date of Termination. This obligation shall preclude any such involvement, whether on a direct or indirect basis, and whether as an owner, partner, officer, director, employee, consultant, investor, lender or otherwise, except as the holder of not more than 1% of the outstanding stock of a publicly held company.
|
(b)
|
The geographic area to which the restrictions of Section 2 (a) shall apply shall be limited to the geographic area in which the Company does business, has done business, or plans to do business as of your Date of Termination.
|
(c)
|
You agree that while employed by the Company and for a period of one (1) year after your Date of Termination, you shall not directly or indirectly solicit, induce or attempt to induce (other than a general solicitation not directed at the employees of the Company) either alone or in association with others, any employee or independent contractor of the Company to terminate his or her employment or his, her or its relationship with the Company or in any way assist or enable another person or entity, directly or indirectly, to solicit, induce or attempt to induce any individual, employee or independent contractor of the Company to terminate his/her employment or his, her or its relationship with the Company.
|
(d)
|
You agree that while employed by the Company and for a period of one (1) year after your Date of Termination, you shall not, directly or indirectly, acting alone or in association with others, solicit, divert or take away or attempt to solicit, divert or take away, the business of any current or prospective customers, accounts or business partners that were contacted, solicited or served by the Company while you were employed by the Company.
|
(e)
|
You acknowledge that the restrictions set forth in this Section 2 are necessary for the protection of the business and goodwill of the Company and its Subsidiaries and are material and integral to the Award. You further acknowledge that the restrictions contained herein are reasonable for the protection of the business and good will of the Company and its Subsidiaries. You agree that any breach, or threatened breach, of this Agreement is likely to cause the Company substantial and irrevocable harm. In the event of any breach or threatened breach, you agree that the Company, in addition to such other remedies which may be available, shall be entitled to specific performance and other injunctive relief without posting a bond or other security. You also waive the adequacy of a remedy at law as a defense to such relief.
|
(f)
|
You agree that if you violate any of the provisions of this Section 2, you shall continue to be bound by the restrictions set forth herein until a period of one (1) year has expired without any violation of this Section 2. You further agree that in the event you violate any of the provisions of this Section 2, and you are receiving any severance pay or benefits from the Company, the Company shall have no obligation to continue paying or providing to you any such severance pay or benefits and may recover from you the severance pay and benefits you previously received.
|
(g)
|
If any restriction set forth in this Section 2 is found by any court of competent jurisdiction to be unenforceable because it extends for too long a period of time or over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.
|
|
HASBRO, INC.
|
Date: ______________________
|
By:____________________________
|
|
EMPLOYEE
|
Date:_______________________
|
_______________________________
Print Name
_______________________________
Signature |
I, Brian Goldner, certify that:
|
|||
|
|
||
1. I have reviewed this quarterly report on Form 10-Q of Hasbro, Inc.;
|
|||
|
|
||
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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Date: July 31, 2013
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/s/ Brian Goldner
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Brian Goldner
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President and Chief
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Executive Officer
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I, Deborah Thomas, certify that:
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1. I have reviewed this quarterly report on Form 10-Q of Hasbro, Inc.;
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2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
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3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
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4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
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a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
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b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
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c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
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d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
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5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):
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a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and
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b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
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Date: July 31, 2013
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/s/ Deborah Thomas
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Deborah Thomas
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Executive Vice President and
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Chief Financial Officer
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1)
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the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, as filed with the Securities and Exchange Commission (the "10-Q Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2)
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the information contained in the Company's 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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1)
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the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2013, as filed with the Securities and Exchange Commission (the "10-Q Report"), fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
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2)
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the information contained in the Company's 10-Q Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
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Segment Reporting
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Segment Reporting (Thousands of Dollars) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting | (11) Segment Reporting Hasbro is a worldwide leader in children's and family leisure time products and services with a broad portfolio of brands and entertainment properties across 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 game products in markets outside of the U.S. and Canada, primarily in 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 products 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, certain restructuring charges, 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 and corporate administration, are allocated to segments based upon expenses and foreign exchange rates fixed at the beginning of the year, with adjustments to actual expenses and 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 2013, nor were those of the comparable 2012 period representative of those actually experienced for the full year 2012. 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 quarter and six-month periods ended June 30, 2013 and July 1, 2012 are as follows.
(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. Restructuring charges for the quarter and six-month periods ended June 30, 2013 and July 1, 2012 were included by segment as follows:
The following table represents consolidated International segment net revenues by major geographic region for the quarter and six-month periods ended June 30, 2013 and July 1, 2012.
The following table presents consolidated net revenues by class of principal products for the quarter and six-month periods ended June 30, 2013 and July 1, 2012. The Company has reclassified $1,012 and $2,012 of net revenues for the quarter and six-month periods ended July 1, 2012 previously reported in the Other category to the Games category.
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Consolidated Statements of Operations (Unaudited) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
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Jun. 30, 2013
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Jul. 01, 2012
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Jun. 30, 2013
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Jul. 01, 2012
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Consolidated Statements of Operations (Unaudited) [Abstract] | ||||
Net revenues | $ 766,342 | $ 811,467 | $ 1,430,036 | $ 1,460,317 |
Costs and expenses | ||||
Cost of sales | 300,570 | 311,984 | 568,142 | 569,020 |
Royalties | 50,229 | 70,893 | 99,621 | 123,327 |
Product development | 47,904 | 50,113 | 95,089 | 95,039 |
Advertising | 73,657 | 79,297 | 140,791 | 144,342 |
Amortization of intangibles | 12,037 | 11,501 | 23,453 | 22,156 |
Program production cost amortization | 10,309 | 10,018 | 16,032 | 13,156 |
Selling, distribution and administration | 197,548 | 191,379 | 402,193 | 391,269 |
Total costs and expenses | 692,254 | 725,185 | 1,345,321 | 1,358,309 |
Operating profit | 74,088 | 86,282 | 84,715 | 102,008 |
Non-operating (income) expense | ||||
Interest expense | 22,225 | 22,413 | 45,204 | 45,525 |
Interest income | (1,432) | (1,689) | (2,913) | (4,164) |
Other (income) expense, net | 2,219 | 5,899 | 7,841 | 5,854 |
Total non-operating expense, net | 23,012 | 26,623 | 50,132 | 47,215 |
Earnings before income taxes | 51,076 | 59,659 | 34,583 | 54,793 |
Income tax expense | 14,596 | 16,232 | 4,774 | 13,945 |
Net earnings | $ 36,480 | $ 43,427 | $ 29,809 | $ 40,848 |
Net loss per common share | ||||
Basic | $ 0.28 | $ 0.33 | $ 0.23 | $ 0.31 |
Diluted | $ 0.28 | $ 0.33 | $ 0.23 | $ 0.31 |
Cash dividends declared per common share | $ 0.40 | $ 0.36 | $ 0.80 | $ 0.72 |
Financial Instruments
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3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Financial Instruments (Thousands of Dollars) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments | (4) Financial Instruments Hasbro's financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain accrued liabilities. At June 30, 2013, July 1, 2012 and December 30, 2012, the carrying cost of these instruments approximated their fair value. The Company's financial instruments at June 30, 2013, July 1, 2012 and December 30, 2012 also include certain assets and liabilities measured at fair value (see Notes 6 and 8) as well as long-term borrowings. The carrying costs and fair values of the Company's long-term borrowings as of June 30, 2013, July 1, 2012 and December 30, 2012 are as follows:
The carrying cost of the 6.125% Notes Due 2014 includes principal amounts of $425,000 as well as fair value adjustments of $7,458, $14,662, and $11,526 at June 30, 2013, July 1, 2012 and December 30, 2012, respectively, related to interest rate swaps. The interest rate swaps were terminated in November 2012 and the fair value adjustment at June 30, 2013 and December 30, 2012 represent the unamortized portions of the fair value of the interest rate swaps at the date of termination. At June 30, 2013 the principal amount and fair value adjustment associated with the 6.125% Notes Due 2014, totaling $432,458, were included in the current portion of long-term debt. All other carrying costs represent principal amounts and were included in long-term debt excluding the current portion at June 30, 2013. The total principal amount of long-term debt, including the current portion, at June 30, 2013, July 1, 2012 and December 30, 2012 was $1,384,895. The fair values of the Company's long-term debt are considered Level 3 fair values (see Note 6 for further discussion of the fair value hierarchy) and are measured using the discounted future cash flows method. In addition to the debt terms, the valuation methodology includes an assumption of a discount rate that approximates the current yield on a similar debt security. This assumption is considered an unobservable input in that it reflects the Company's own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that this is the best information available for use in the fair value measurement. The Company was party to a series of interest rate swap agreements to adjust the amount of debt that is subject to fixed interest rates. The interest rate swaps were matched with a portion of the 6.125% Notes Due 2014 and accounted for as fair value hedges of those notes. The interest rate swaps had a total notional amount of $400,000 with maturities in 2014 which matched the maturity date of the related notes. In each of the contracts, the Company received payments based upon a fixed interest rate of 6.125%, which matched the interest rate of the notes being hedged, and made payments based upon a floating rate based on Libor. These contracts were designated and effective as hedges of the changes in the fair value of the associated debt. In November 2012, these interest rate swap agreements were terminated. The fair value was recorded as an adjustment to long-term debt and is being amortized through the statement of operations over the life of the related debt using a straight-line method. At June 30, 2013 and December 30, 2012, this adjustment to total long-term debt was $7,458 and $11,526, respectively. At July 1, 2012, the fair value of these contracts was an asset of $14,662 which was recorded in other assets with a corresponding fair value adjustment to increase long-term debt. The Company recorded losses of $1,385 and $1,315 for the quarter and six-month periods ended July 1, 2012, respectively, on these instruments in other (income) expense, net relating to the change in fair value of such derivatives, wholly offsetting (gains) losses from the change in fair value of the associated long-term debt, also included in other (income) expense. |
Derivative Financial Instruments (Tables)
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Derivative Financial Instruments (Thousands of Dollars) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Cash Flow Hedging Instruments | At June 30, 2013, July 1, 2012 and December 30, 2012, the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows.
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Derivatives Fair Value by Balance Sheet Location | The Company has a master agreement with each of its counterparties that allows for the netting of outstanding forward contracts. The fair values of the Company's foreign currency forward contracts designated as cash flow hedges are recorded in the consolidated balance sheets at June 30, 2013, July 1, 2012 and December 30, 2012 as follows:
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Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations [Table Text Block] | Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings to net earnings for the quarter and six-month periods ended June 30, 2013 and July 1, 2012 as follows:
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Fair values of undesignated derivative financial instruments | At June 30, 2013, July 1, 2012 and December 30, 2012, the fair values of the Company's undesignated derivative financial instruments were recorded in the consolidated balance sheets as follows:
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Subsequent Events
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3 Months Ended |
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Jun. 30, 2013
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Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | (12) Subsequent Events On July 8, 2013, the Company acquired a majority interest in Backflip Studios, LLC ("Backflip"), a mobile game developer based in Boulder, Colorado. The Company paid cash of $112,000 to acquire a 70% interest in Backflip, and will be required to purchase the remaining 30% in the future contingent upon if Backflip achieves certain predetermined financial performance metrics. The Company will account for this investment using the acquisition method and will consolidate the financial statements of Backflip commencing as of the acquisition date and report the 30% minority share as a non-controlling interest. On July 22, 2013 the Company announced that it had entered into amended agreements related to its MARVEL and STAR WARS licenses with The Walt Disney Company ("Disney"). The term of the MARVEL agreement was extended through 2020 and the amendment requires an additional $80,000 of guaranteed royalties, contingent on the quantity and type of theatrical movie releases. In anticipation of Disney's release of the next three STAR WARS sequel motion pictures, as well as other anticipated entertainment, the amended agreement for STAR WARS provides for guaranteed payments of $225,000, of which $75,000 is expected to be paid during the third quarter of 2013. |
Segment Reporting (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
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Jul. 01, 2012
|
Jun. 30, 2013
|
Jul. 01, 2012
|
Dec. 30, 2012
|
||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||
Net revenues, external | $ 766,342 | $ 811,467 | $ 1,430,036 | $ 1,460,317 | ||||||||||
Net revenues, affliates | 0 | 0 | 0 | 0 | ||||||||||
Operating Profit (Loss) | 74,088 | 86,282 | 84,715 | 102,008 | ||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||||||||
Total assets | 4,178,299 | 4,014,721 | 4,178,299 | 4,014,721 | 4,325,387 | |||||||||
Segment Reporting, Restructuring Charges Reconciling Item [Line Items] | ||||||||||||||
Restructuring Charges | 2,462 | 0 | 31,388 | 11,130 | ||||||||||
U.S. and Canada [Member]
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||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||
Net revenues, external | 389,243 | 406,588 | 731,302 | 735,573 | ||||||||||
Net revenues, affliates | 1,065 | 1,294 | 2,094 | 2,262 | ||||||||||
Operating Profit (Loss) | 59,004 | 60,928 | 96,747 | 75,339 | ||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||||||||
Total assets | 6,220,141 | 5,476,742 | 6,220,141 | 5,476,742 | 6,041,893 | |||||||||
Segment Reporting, Restructuring Charges Reconciling Item [Line Items] | ||||||||||||||
Restructuring Charges | 0 | 0 | 0 | 2,444 | ||||||||||
International [Member]
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||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||
Net revenues, external | 340,176 | 360,493 | 629,989 | 650,222 | ||||||||||
Net revenues, affliates | 26 | 26 | 225 | 175 | ||||||||||
Operating Profit (Loss) | 14,793 | 29,851 | 10,288 | 24,767 | ||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||||||||
Total assets | 1,915,951 | 1,845,126 | 1,915,951 | 1,845,126 | 2,176,021 | |||||||||
Segment Reporting, Restructuring Charges Reconciling Item [Line Items] | ||||||||||||||
Restructuring Charges | 0 | 0 | 0 | 1,628 | ||||||||||
Entertainment and Licensing [Member]
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Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||
Net revenues, external | 35,336 | 43,216 | 66,110 | 72,552 | ||||||||||
Net revenues, affliates | 3,301 | 1,513 | 5,522 | 2,830 | ||||||||||
Operating Profit (Loss) | 3,712 | 8,192 | 8,997 | 15,930 | ||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||||||||
Total assets | 1,206,380 | 1,090,416 | 1,206,380 | 1,090,416 | 1,164,715 | |||||||||
Segment Reporting, Restructuring Charges Reconciling Item [Line Items] | ||||||||||||||
Restructuring Charges | 0 | 0 | 1,729 | 555 | ||||||||||
Global Operations [Member]
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Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||
Net revenues, external | 1,587 | [1] | 1,170 | [1] | 2,635 | [1] | 1,970 | [1] | ||||||
Net revenues, affliates | 291,699 | [1] | 298,500 | [1] | 505,985 | [1] | 556,199 | [1] | ||||||
Operating Profit (Loss) | (4,357) | (8,983) | (13,940) | (21,716) | ||||||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||||||||
Total assets | 2,626,250 | 2,188,285 | 2,626,250 | 2,188,285 | 2,493,976 | |||||||||
Segment Reporting, Restructuring Charges Reconciling Item [Line Items] | ||||||||||||||
Restructuring Charges | 0 | 0 | 0 | 4,307 | ||||||||||
Corporate and Eliminations [Member]
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||||||||||||||
Segment Reporting, Revenue Reconciling Item [Line Items] | ||||||||||||||
Net revenues, external | 0 | 0 | 0 | 0 | ||||||||||
Net revenues, affliates | (296,091) | (301,333) | (513,826) | (561,466) | ||||||||||
Operating Profit (Loss) | 936 | [2] | (3,706) | [2] | (17,377) | [2] | 7,688 | [2] | ||||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||||||||||||
Total assets | (7,790,423) | [2] | (6,585,848) | [2] | (7,790,423) | [2] | (6,585,848) | [2] | (7,551,218) | [2] | ||||
Segment Reporting, Restructuring Charges Reconciling Item [Line Items] | ||||||||||||||
Restructuring Charges | $ 2,462 | $ 0 | $ 29,659 | $ 2,196 | ||||||||||
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Earnings Per Share (Details) (USD $)
In Thousands, except Per Share data, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jul. 01, 2012
|
Jun. 30, 2013
|
Jul. 01, 2012
|
|
Earnings Per Share (Thousands of Dollars and Shares Except Per Share Data) [Abstract] | ||||
Net earnings | $ 36,480 | $ 43,427 | $ 29,809 | $ 40,848 |
Basic [Abstract] | ||||
Average Shares Outstanding | 130,323 | 130,294 | 129,831 | 129,918 |
Equivalent shares (basic) (in shares) | 130,323 | 130,294 | 129,831 | 129,918 |
Net earnings per common share-basic (in dollars per share) | $ 0.28 | $ 0.33 | $ 0.23 | $ 0.31 |
Diluted [Abstract] | ||||
Average Shares Outstanding | 130,323 | 130,294 | 129,831 | 129,918 |
Effect of dilutive securities: | ||||
Options and other share-based awards (in shares) | 1,657 | 1,824 | 1,606 | 1,907 |
Equivalent shares (diluted) (in shares) | 131,980 | 132,118 | 131,437 | 131,825 |
Net earnings per common share-diluted (in dollars per share) | $ 0.28 | $ 0.33 | $ 0.23 | $ 0.31 |
Options to acquire shares totaling excluded as antidilutive | 1,849 | 3,504 | 1,511 | 3,523 |
Segment Reporting (Tables)
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3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Segment Reporting (Thousands of Dollars) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net revenues by segment |
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[1] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating profit (loss) by segments |
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[1],[2] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets by segments |
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[2] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring Charges Reported by Segment |
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Schedule of net revenues by international region |
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Net revenues by product category |
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Derivative Financial Instruments, Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) (USD $)
In Thousands, unless otherwise specified |
Jun. 30, 2013
|
Dec. 30, 2012
|
Jul. 01, 2012
|
---|---|---|---|
Derivatives, Fair Value [Line Items] | |||
Total assets derivatives, cash flow hedges | $ 14,293 | $ 1,741 | $ 14,859 |
Total liability derivatives, cash flow hedges | 0 | (3,134) | (21) |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other current assets [Member]
|
|||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 13,907 | 2,802 | 14,113 |
Unrealized losses | (1,540) | (1,073) | (4,250) |
Net unrealized gain (loss) | 12,367 | 1,729 | 9,863 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member]
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|||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 1,926 | 12 | 5,066 |
Unrealized losses | 0 | 0 | (70) |
Net unrealized gain (loss) | 1,926 | 12 | 4,996 |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Accrued liabilities [Member]
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|||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 1 | 1,466 | 3 |
Unrealized losses | (1) | (4,245) | (18) |
Net unrealized gain (loss) | 0 | (2,779) | (15) |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Other liabilities [Member]
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Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 0 | 20 | 0 |
Unrealized losses | 0 | (375) | (6) |
Net unrealized gain (loss) | 0 | (355) | (6) |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Prepaid expenses and other current assets [Member]
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Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 1,625 | 0 | 720 |
Unrealized losses | (18) | 0 | (522) |
Net unrealized gain (loss) | 1,607 | 0 | 198 |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Accrued liabilities [Member]
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|||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 0 | 469 | 0 |
Unrealized losses | 0 | (796) | 0 |
Net unrealized gain (loss) | 0 | (327) | 0 |
Foreign Exchange Forward [Member] | Not Designated as Hedging Instrument [Member] | Other liabilities [Member]
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|||
Derivatives, Fair Value [Line Items] | |||
Net unrealized gain (loss) | $ (1,235) | $ 0 | $ (744) |
Segment Reporting, Revenue by Products (Details) (USD $)
In Thousands, unless otherwise specified |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2013
|
Jul. 01, 2012
|
Jun. 30, 2013
|
Jul. 01, 2012
|
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Revenue from External Customer [Line Items] | ||||
Net revenue | $ 766,342 | $ 811,467 | $ 1,430,036 | $ 1,460,317 |
Reclassification from Other Category to Games Category | 1,012 | 2,012 | ||
Boys [Member]
|
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Revenue from External Customer [Line Items] | ||||
Net revenue | 253,684 | 389,062 | 496,480 | 691,821 |
Games [Member]
|
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Revenue from External Customer [Line Items] | ||||
Net revenue | 255,409 | 214,842 | 486,324 | 397,758 |
Girls [Member]
|
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Revenue from External Customer [Line Items] | ||||
Net revenue | 149,419 | 104,191 | 264,193 | 197,427 |
Preschool [Member]
|
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Revenue from External Customer [Line Items] | ||||
Net revenue | $ 107,830 | $ 103,372 | $ 183,039 | $ 173,311 |
Consolidation Program and Restructuring Charge (Tables)
|
3 Months Ended | ||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2013
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Consolidation Program and Restructuring Charge [Abstract] | |||||||||||||||||||||
Schedule of Restructuring and Related Costs [Table Text Block] | The following is a summary of the severance and other personnel charges related to the Company's cost savings initiative included in accrued liabilities as of June 30, 2013:
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Earnings Per Share
|
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Earnings Per Share (Thousands of Dollars and Shares Except Per Share Data) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share | (2) Earnings Per Share Net earnings per share data for the quarter and six-month periods ended June 30, 2013 and July 1, 2012 were computed as follows:
For the quarters ended June 30, 2013 and July 1, 2012, options and restricted stock unit awards totaling 1,849 and 3,504, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been antidilutive. For the six-month periods ended June 30, 2013 and July 1, 2012, options and restricted stock unit awards totaling 1,511 and 3,523, respectively, were excluded from the calculation of diluted earnings per share because to included them would have been antidilutive. |
Income Taxes
|
3 Months Ended |
---|---|
Jun. 30, 2013
|
|
Income Taxes (Thousands of Dollars) [Abstract] | |
Income Taxes | (5) Income Taxes The Company and its subsidiaries file income tax returns in the United States and various state and international jurisdictions. In the normal course of business, the Company is regularly audited by U.S. federal, state and local and international tax authorities in various tax jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years before 2008. With few exceptions, the Company is no longer subject to U.S. state or local and non-U.S. income tax examinations by tax authorities in its major jurisdictions for years before 2006. The U.S. Internal Revenue Service has nearly completed an examination related to the 2008 and 2009 U.S. federal income tax returns. The Company is also under income tax examination in several U.S. state and local and non-U.S. jurisdictions. In connection with the Mexican tax examinations for the years 2000 to 2007, the Company has received tax assessments totaling approximately $245,130 (at June 30, 2013 exchange rates), which include interest, penalties and inflation updates, related to transfer pricing which the Company is vigorously defending. In order to continue the process of defending its position, the Company was required to guarantee the amount of the assessments for the years 2000 to 2004, as is usual and customary in Mexico with respect to these matters. Accordingly, as of June 30, 2013, bonds totaling approximately $184,990 (at June 30, 2013 exchange rates) have been provided to the Mexican government related to the 2000 to 2004 assessments, allowing the Company to defend its positions. The Company is not currently required to guarantee the amounts of the 2005, 2006 and 2007 assessments. The Company expects to be successful in sustaining its position with respect to these assessments as well as similar positions that may be taken by the Mexican tax authorities for periods subsequent to 2007. At June 30, 2013, the Company has liabilities for unrecognized tax benefits of $123,085 which are included as a component of other liabilities in the consolidated balance sheets. The Company believes that it is reasonably possible that certain tax examinations may be concluded and statutes of limitations will expire within the next twelve months, and that these liabilities , inclusive of potential interest and penalties, may decrease by up to approximately $68,000. This may result in the recognition of an income tax benefit of up to $24,000 and the reversal of approximately $16,000 of deferred tax assets, and an increase to accrued income taxes of $28,000. The unrecognized tax benefits primarily relate to both the timing and the nature of the deductibility of certain expenses, as well as the tax treatment of certain subsidiary and other transactions. |
Other Comprehensive Loss
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3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2013
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Other Comprehensive Earnings (Thousands of Dollars) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Earnings (Loss) | (3) Other Comprehensive Earnings (Loss) Components of other comprehensive earnings are presented within the consolidated statements of comprehensive earnings (loss). The related tax expenses of gains on cash flow hedging activities within other comprehensive earnings were $1,260 and $2,971 for the quarter and six-month periods ended June 30, 2013, respectively. The income tax expense related to reclassification adjustments of net gains on cash flow hedging activities from other comprehensive earnings were $286 and $419 for the quarter and six-month periods ended June 30, 2013, respectively. The income tax benefit related to the reclassification of amortization of unrecognized pension and postretirement amounts was $712 and $1,424 for the quarter and six months ended June 30, 2013. The related tax expense of gains on cash flow hedging activities within other comprehensive earnings was $3,201 and $1,861 for the quarter and six-month periods ended July 1, 2012, respectively. The income tax expense related to reclassification adjustments of net gains on cash flow hedging activities from other comprehensive earnings was $419 and $562 for the quarter and six-month periods ended July 1, 2012, respectively. At June 30, 2013, the Company had remaining deferred gains on hedging instruments, net of tax, of $10,334 in accumulated other comprehensive earnings ("AOCE"). These instruments hedge payments related to inventory purchased during the second quarter of 2013 or forecasted to be purchased during the remainder of 2013 and 2014, intercompany expenses and royalty payments expected to be paid or received during the remainder of 2013 and 2014 as well as cash receipts for sales made during the second quarter of 2013 or forecasted to be made during the remainder of 2013. These amounts will be reclassified into the consolidated statement of operations upon the sale of the related inventory or recognition of the related sales, royalties or expenses. Of the amount included in AOCE at June 30, 2013, the Company expects approximately $8,553 to be reclassified to earnings within the next twelve months. However, the amount ultimately realized in earnings is dependent on the fair value of the contracts on the settlement dates. Changes in the components of accumulated other comprehensive earnings (loss) for the six months ended June 30, 2013 and July 1, 2012 are as follows:
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Subsequent Events (Details) (USD $)
In Thousands, unless otherwise specified |
0 Months Ended | ||
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Jul. 08, 2013
Acquisition of Majority Stake in Backflip Studios [Member]
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Jul. 22, 2013
Amendment to Royalty Agreement with The Walt Disney Company for MARVEL [Member]
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Jul. 22, 2013
Amendment to Royalty Agreement with The Walt Disney Company for STAR WARS [Member]
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Subsequent Event [Line Items] | |||
Subsequent Event, Date | Jul. 08, 2013 | Jul. 22, 2013 | Jul. 22, 2013 |
Subsequent Event, Description | the Company acquired a majority interest in Backflip Studios, LLC | Amended agreement with The Walt Disney Company to extend term through 2020. | Amended agreement with The Walt Disney Company to included Disney's release of the next three STAR WARS sequel motion pictures, as well as other anticipated entertainment |
Payments to Acquire Businesses, Gross | $ 112,000 | ||
Noncontrolling Interest, Ownership Percentage by Parent | 70.00% | ||
Noncontrolling Interest, Ownership Percentage by Noncontrolling Owners | 30.00% | ||
Business Combination, Contingent Consideration Arrangements, Description | The Company may be required to purchase the remaining 30% in the future contingent upon the achievement of predetermined financial performance. | ||
Royalty Guarantees, Commitments, Amount | 225,000 | ||
Royalty Guarantees, Commitments, Amount Expected to be Paid in the Third Quarter of 2013 | 75,000 | ||
Additional Royalty Guarantees, Commitments, Amount | $ 80,000 |
Contingencies (Details) (Unasserted Claim [Member], Pending Litigation [Member], USD $)
In Thousands, unless otherwise specified |
6 Months Ended |
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Jun. 30, 2013
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Unasserted Claim [Member] | Pending Litigation [Member]
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Loss Contingencies [Line Items] | |
Loss Contingency, Lawsuit Filing Date | February 2013 |
Loss Contingency, Allegations | contractual interpretation of products subject to license agreements between the inventor and the Company, and payment of royalties |
Loss Contingency, Damages Sought, Value | $ 90,000 |
Loss Contingency, Inestimable Loss | The Company currently cannot estimate a possible loss or range of loss. |