Segment Reporting

9 Months Ended

Sep. 29, 2013

Segment Reporting (Thousands of Dollars) [Abstract]

Segment Reporting

(12) 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 as well as the operations of Backflip. 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.

HASBRO, INC. AND SUBSIDIARIES

Condensed Notes to Consolidated Financial Statements (continued)

(Thousands of Dollars and Shares Except Per Share Data)

(Unaudited)

Information by segment and a reconciliation to reported amounts for the quarter and nine-month periods ended September 29, 2013 and September 30, 2012 are as follows.

	Quarter Ended
	September 29, 2013					September 30, 2012
Net revenues	External		Affiliate			External		Affiliate
U.S. and Canada	$	735,619		1,290			774,539		1,814
International		582,676		55			524,144		110
Entertainment and Licensing		48,637		6,806			43,066		3,179
Global Operations (a)		3,416		591,867			3,388		578,528
Corporate and Eliminations		-		(600,018	)		-		(583,631	)
	$	1,370,348		-			1,345,137		-

	Nine Months Ended
	September 29, 2013					September 30, 2012
Net revenues	External		Affiliate			External		Affiliate
U.S. and Canada	$	1,466,921		3,384			1,510,112		4,076
International		1,212,665		280			1,174,366		285
Entertainment and Licensing		114,747		12,328			115,618		6,009
Global Operations (a)		6,051		1,097,852			5,358		1,134,727
Corporate and Eliminations		-		(1,113,844	)		-		(1,145,097	)
	$	2,800,384		-			2,805,454		-

	Quarter Ended						Nine Months Ended
Operating profit (loss)	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
U.S. and Canada	$	146,991			154,239			243,738			229,578
International		105,663			85,498			115,951			110,265
Entertainment and Licensing		7,625			10,722			16,622			26,652
Global Operations (a)		17,578			8,720			3,638			(12,996	)
Corporate and Eliminations (b)		(79,151	)		(9,557	)		(96,528	)		(1,869	)
	$	198,706			249,622			283,421			351,630

Total assets	September 29, 2013			September 30, 2012			December 30, 2012
U.S. and Canada	$	6,564,121			5,888,392			6,041,893
International		2,290,130			2,161,186			2,176,021
Entertainment and Licensing		1,383,554			1,127,569			1,164,715
Global Operations		2,755,595			2,336,528			2,493,976
Corporate and Eliminations (b)		(8,403,255	)		(7,067,388	)		(7,551,218	)
	$	4,590,145			4,446,287			4,325,387

(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.

HASBRO, INC. AND SUBSIDIARIES

Condensed Notes to Consolidated Financial Statements (continued)

(Thousands of Dollars and Shares Except Per Share Data)

(Unaudited)

Restructuring charges for the quarter and nine-month periods ended September 29, 2013 and September 30, 2012 were included by segment as follows:

	Quarter Ended				Nine Months Ended
	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
U.S. and Canada	$	-		-		-		2,444
International		-		-		-		1,628
Entertainment and Licensing		-		-		1,729		555
Global Operations		-		-		-		4,307
Corporate and Eliminations		4,093		-		33,752		2,196
Total Charges	$	4,093		-		35,481		11,130

The following table represents consolidated International segment net revenues by major geographic region for the quarter and nine-month periods ended September 29, 2013 and September 30, 2012.

	Quarter Ended				Nine Months Ended
	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Europe	$	376,648		345,281		755,097		751,547
Latin America		131,914		115,342		260,443		237,090
Asia Pacific		74,114		63,521		197,125		185,729
Net revenues	$	582,676		524,144		1,212,665		1,174,366

The following table presents consolidated net revenues by class of principal products for the quarter and nine-month periods ended September 29, 2013 and September 30, 2012.

	Quarter Ended				Nine Months Ended
	September 29, 2013		September 30, 2012		September 29, 2013		September 30, 2012
Boys	$	392,014		471,125		888,494		1,162,958
Games		387,450		365,714		873,774		763,460
Girls		388,696		302,304		652,889		499,731
Preschool		202,188		205,994		385,227		379,305
Net revenues	$	1,370,348		1,345,137		2,800,384		2,805,454