Segment Reporting

6 Months Ended

Jun. 26, 2016

Segment Reporting (Thousands of Dollars) [Abstract]

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 consumer products licensing, digital gaming, movie and television entertainment operations. The Global Operations segment is responsible for 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, 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 six months are not necessarily representative of those which may be expected for the full year 2016, nor were those of the comparable 2015 period representative of those actually experienced for the full year 2015. 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 26, 2016 and June 28, 2015 are as follows.

	Quarter Ended
	June 26, 2016				June 28, 2015
Net revenues	External		Affiliate		External		Affiliate
U.S. and Canada	$	425,899		1,552		385,183		1,718
International		401,129		261		362,760		(96)
Entertainment and Licensing		51,896		4,100		47,640		4,025
Global Operations (a)		21		372,058		2,075		350,864
Corporate and Eliminations		-		(377,971)		-		(356,511)
	$	878,945		-		797,658		-

	Six Months Ended
	June 26, 2016				June 28, 2015
Net revenues	External		Affiliate		External		Affiliate
U.S. and Canada	$	869,547		2,996		730,873		2,768
International		746,166		261		668,473		-
Entertainment and Licensing		94,391		8,801		108,271		7,434
Global Operations (a)		21		669,247		3,541		587,707
Corporate and Eliminations		-		(681,305)		-		(597,909)
	$	1,710,125		-		1,511,158		-

	Quarter Ended				Six Months Ended
	June 26,		June 28,		June 26,		June 28,
Operating profit (loss)	2016		2015		2016		2015
U.S. and Canada	$	57,953		47,147		136,288		88,570
International		29,654		25,361		32,507		27,264
Entertainment and Licensing		13,830		7,443		19,272		23,845
Global Operations (a)		(2,868)		2,019		576		(1,763)
Corporate and Eliminations (b)		(13,695)		(6,470)		(17,853)		(8,211)
	$	84,874		75,500		170,790		129,705

	June 26,		June 28,		December 27,
Total assets	2016		2015		2015
U.S. and Canada	$	2,400,243		3,095,862		2,654,270
International		1,982,740		2,164,440		2,345,847
Entertainment and Licensing		524,962		675,082		567,753
Global Operations		2,401,676		2,334,761		2,410,142
Corporate and Eliminations (b)		(2,965,236)		(4,052,456)		(3,257,295)
	$	4,344,385		4,217,689		4,720,717

(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 six-month periods ended June 26, 2016 and June 28, 2015.

	Quarter Ended				Six Months Ended
	June 26,		June 28,		June 26,		June 28,
	2016		2015		2016		2015
Europe	$	228,124		185,660		452,247		381,531
Latin America		97,368		98,368		152,964		155,976
Asia Pacific		75,637		78,732		140,955		130,966
Net revenues	$	401,129		362,760		746,166		668,473

	Quarter Ended				Six Months Ended
	June 26,		June 28,		June 26,		June 28,
	2016		2015		2016		2015
Boys	$	355,051		340,426		691,906		613,024
Games		227,703		211,629		458,845		447,278
Girls		172,326		127,489		337,679		244,616
Preschool		123,865		118,114		221,695		206,240
Net revenues	$	878,945		797,658		1,710,125		1,511,158