Derivative Financial Instruments (Tables)

9 Months Ended

Sep. 29, 2013

Derivative Financial Instruments (Thousands of Dollars) [Abstract]

Summary of Cash Flow Hedging Instruments

At September 29, 2013, September 30, 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.

	September 29, 2013					September 30, 2012					December 30, 2012
Hedged transaction	Notional Amount		Fair Value			Notional Amount		Fair Value			Notional Amount		Fair Value
Inventory purchases	$	525,911		(6,114	)		431,666		4,569			397,770		(2,638	)
Intercompany royalty transactions		174,974		(2,258	)		156,358		1,297			131,693		(1,168	)
Sales		232,709		497			152,763		(2,925	)		92,761		2,458
Other		27,148		1,000			9,956		273			2,420		(45	)
Total	$	960,742		(6,875	)		750,743		3,214			624,644		(1,393	)

HASBRO, INC. AND SUBSIDIARIES

Condensed Notes to Consolidated Financial Statements (continued)

(Thousands of Dollars and Shares Except Per Share Data)

(Unaudited)

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 September 29, 2013, September 30, 2012 and December 30, 2012 as follows:

	September 29, 2013			September 30, 2012			December 30, 2012
Prepaid expenses and other current assets
Unrealized gains	$	2,923			5,677			2,802
Unrealized losses		(1,572	)		(2,692	)		(1,073	)
Net unrealized gain	$	1,351			2,985			1,729
Other assets
Unrealized gains	$	109			2,448			12
Unrealized losses		(11	)		(360	)		-
Net unrealized gain	$	98			2,088			12
Accrued liabilities
Unrealized gains	$	3,023			2,816			1,466
Unrealized losses		(8,652	)		(4,617	)		(4,245	)
Net unrealized loss	$	(5,629	)		(1,801	)		(2,779	)
Other liabilities
Unrealized gains	$	191			104			20
Unrealized losses		(2,886	)		(162	)		(375	)
Net unrealized loss	$	(2,695	)		(58	)		(355	)

Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations

Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings to net earnings for the quarter and nine-month periods ended September 29, 2013 and September 30, 2012 as follows:

	Quarter Ended						Nine Months Ended
	September 29, 2013			September 30, 2012			September 29, 2013			September 30, 2012
Statements of Operations Classification
Cost of sales	$	1,614			3,431			1,650			6,372
Royalties		(303	)		824			(347	)		1,830
Sales		2,906			(2,178	)		4,441			(2,821	)
Net realized gains	$	4,217			2,077			5,744			5,381

Fair values of undesignated derivative financial instruments

At September 29, 2013, September 30, 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:

	September 29, 2013			September 30, 2012			December 30, 2012
Prepaid expenses and other current assets
Unrealized gains	$	1,761			1,119			-
Unrealized losses		(1,107	)		(504	)		-
Net unrealized gain		654			615			-
Other assets
Unrealized gains		298			-			-
Unrealized losses		(80	)		-			-
Net unrealized gain		218			-			-
Accrued liabilities
Unrealized gains		-			-			469
Unrealized losses		-			-			(796	)
Net unrealized gain		-			-			(327	)
Other liabilities
Unrealized gains		-			74			-
Unrealized losses		-			(527	)		-
Net unrealized loss		-			(453	)		-
Total unrealized gain (loss), net	$	872			162			(327	)