XML 27 R15.htm IDEA: XBRL DOCUMENT v3.7.0.1
Segment Reporting
 3 Months Ended
Apr. 02, 2017
Segment Reporting (Thousands of Dollars) [Abstract]  
Segment Reporting

(9) Segment Reporting

Hasbro is a global play and entertainment company 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 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 are not necessarily representative of those which may be expected for the full year 2017, nor were those of the comparable 2016 period representative of those actually experienced for the full year 2016. 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 quarters ended April 2, 2017 and March 27, 2016 are as follows:

Quarter Ended
April 2, 2017March 27, 2016
Net revenuesExternalAffiliateExternalAffiliate
U.S. and Canada$451,5772,391443,6481,444
International345,281-345,037-
Entertainment and Licensing52,7293,50242,4954,701
Global Operations (a)76260,229-297,189
Corporate and Eliminations-(266,122)-(303,334)
$849,663-831,180-

Quarter Ended
April 2,March 27,
Operating profit (loss)20172016
U.S. and Canada$64,75478,335
International5442,853
Entertainment and Licensing11,3465,442
Global Operations (a)8333,444
Corporate and Eliminations (b)866(4,158)
$78,34385,916

April 2,March 27,December 25,
Total assets201720162016
U.S. and Canada$2,618,8082,751,5042,559,792
International1,964,3431,983,7472,368,761
Entertainment and Licensing763,988614,003692,898
Global Operations2,218,8172,423,8112,326,566
Corporate and Eliminations (b)(2,920,086)(3,408,370)(2,856,651)
$4,645,8704,364,6955,091,366

(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. 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 quarters ended April 2, 2017 and March 27, 2016.

Quarter Ended
April 2,March 27,
20172016
Europe$216,120224,123
Latin America64,75655,596
Asia Pacific64,40565,318
Net revenues$345,281345,037

The following table presents consolidated net revenues by brand portfolio for the quarters ended April 2, 2017 and March 27, 2016.

Quarter Ended
April 2,March 27,
20172016
Franchise Brands$423,603416,374
Partner Brands212,962258,225
Hasbro Gaming142,913100,228
Emerging Brands70,18556,353
Total$849,663831,180

Hasbro's total gaming category, including the Hasbro Gaming portfolio as reported above and all other gaming revenue, most notably MAGIC: THE GATHERING and MONOPOLY, which are included in the Franchise Brands portfolio, totaled $253,289 for the first quarter of 2017, up 10%, from revenues of $231,147 for the first quarter of 2016. Hasbro believes its gaming portfolio is a competitive differentiator and views it in its entirety.