Segment Reporting

9 Months Ended

Sep. 27, 2015

Segment Reporting (Thousands of Dollars) [Abstract]

Segment Reporting

(10) 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 spanning toys, games, licensed products ranging from traditional to high-tech and digital, and film and television entertainment. 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 action figures, arts and crafts and creative play products, electronic toys and related electronic interactive products, fashion and other dolls, infant products, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, as well as traditional board games and puzzles, and trading card and role-playing games primarily 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 and television 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. In fiscal September 2015, the company sold its remaining manufacturing operations and henceforth the Global Operations segment will only be responsible for sourcing product from third parties.

Segment performance is measured at the operating profit level. Included in Corporate and Eliminations are certain corporate expenses, including 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 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 and nine months are not necessarily representative of those which may be expected for the full year 2015, nor were those of the comparable 2014 period representative of those actually experienced for the full year 2014. 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 nine-month periods ended September 27, 2015 and September 28, 2014 are as follows.

	Quarter Ended
	September 27, 2015					September 28, 2014
Net revenues	External		Affiliate			External		Affiliate
U.S. and Canada	$	803,824		1,352			764,268		2,388
International		612,645		8			649,284		78
Entertainment and Licensing		52,139		7,604			53,378		7,362
Global Operations (a)		2,389		595,476			2,969		593,435
Corporate and Eliminations		-		(604,440	)		-		(603,263	)
	$	1,470,997		-			1,469,899		-

	Nine Months Ended
	September 27, 2015					September 28, 2014
Net revenues	External		Affiliate			External		Affiliate
U.S. and Canada	$	1,534,697		4,120			1,484,968		5,065
International		1,281,118		8			1,351,608		170
Entertainment and Licensing		160,410		15,038			135,915		14,100
Global Operations (a)		5,930		1,183,183			6,123		1,200,303
Corporate and Eliminations		-		(1,202,349	)		-		(1,219,638	)
	$	2,982,155		-			2,978,614		-

	Quarter Ended						Nine Months Ended
Operating profit (loss)	September 27, 2015			September 28, 2014			September 27, 2015			September 28, 2014
U.S. and Canada	$	187,052			169,850			275,622			252,541
International		114,206			116,451			141,470			148,097
Entertainment and Licensing		16,245			493			40,090			21,120
Global Operations (a)		13,805			15,704			12,042			15,770
Corporate and Eliminations (b)		(27,781	)		(16,684	)		(35,992	)		(25,702	)
	$	303,527			285,814			433,232			411,826

Total assets	September 27, 2015			September 28, 2014			December 28, 2014
U.S. and Canada	$	3,569,803			3,380,207			3,663,497
International		2,486,589			2,394,325			2,422,046
Entertainment and Licensing		727,002			754,575			783,878
Global Operations		2,431,866			2,293,319			2,433,888
Corporate and Eliminations (b)		(4,635,014	)		(4,313,624	)		(4,771,167	)
	$	4,580,246			4,508,802			4,532,142

(a) The Global Operations segment derives substantially all of its revenues, and thus its operating results, from intersegment activities.

(b) Certain long-term assets, including property, plant and equipment, goodwill and other intangibles, which benefit multiple operating segments, are included in Corporate and Eliminations. 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 differences between actual and budgeted amounts are reflected in Corporate and Eliminations because allocations are translated from the US Dollar to local currency at budget rates when recorded, and Corporate and Eliminations also includes the elimination of inter-company balance sheet amounts.

The following table represents consolidated International segment net revenues by major geographic region for the quarter and nine-month periods ended September 27, 2015 and September 28, 2014.

	Quarter Ended				Nine Months Ended
	September 27, 2015		September 28, 2014		September 27, 2015		September 28, 2014
Europe	$	389,024		403,602		770,555		827,412
Latin America		141,901		163,163		297,877		313,466
Asia Pacific		81,720		82,519		212,686		210,730
Net revenues	$	612,645		649,284		1,281,118		1,351,608

The following table presents consolidated net revenues by class of principal products for the quarter and nine-month periods ended September 27, 2015 and September 28, 2014.

	Quarter Ended				Nine Months Ended
	September 27, 2015		September 28, 2014		September 27, 2015		September 28, 2014
Boys	$	593,094		478,509		1,206,118		1,062,082
Games		363,470		395,221		810,748		841,449
Girls		294,785		407,718		539,401		710,235
Preschool		219,648		188,451		425,888		364,848
Net revenues	$	1,470,997		1,469,899		2,982,155		2,978,614