XML 26 R15.htm IDEA: XBRL DOCUMENT v3.8.0.1
Segment Reporting
9 Months Ended
Oct. 01, 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 licensing and gaming, and 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 nine months 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 quarter and nine-month periods ended October 1, 2017 and September 25, 2016 are as follows.

Quarter Ended
October 1, 2017September 25, 2016
Net revenuesExternalAffiliateExternalAffiliate
U.S. and Canada$993,8332,201932,8442,392
International739,229198690,745417
Entertainment and Licensing58,4407,71456,1307,806
Global Operations (a)-665,74638629,090
Corporate and Eliminations-(675,859)-(639,705)
$1,791,502-1,679,757-

Nine Months Ended
October 1, 2017September 25, 2016
Net revenuesExternalAffiliateExternalAffiliate
U.S. and Canada$1,939,8377,0471,802,3915,388
International1,511,0742131,436,911678
Entertainment and Licensing162,66314,727150,52116,607
Global Operations (a)971,329,516591,298,337
Corporate and Eliminations-(1,351,503)-(1,321,010)
$3,613,671-3,389,882-

Quarter EndedNine Months Ended
October 1,September 25,October 1,September 25,
Operating profit (loss)2017201620172016
U.S. and Canada$217,278228,034363,589364,322
International132,007133,075149,435165,582
Entertainment and Licensing16,91014,09539,58033,367
Global Operations (a)11,49724,8524,72325,428
Corporate and Eliminations (b)(16,748)(37,955)(18,056)(55,808)
$360,944362,101539,271532,891

October 1,September 25,December 25,
Total assets201720162016
U.S. and Canada$3,423,2132,316,6242,559,792
International2,524,8212,261,7422,368,761
Entertainment and Licensing884,014632,933692,898
Global Operations3,080,5732,038,7362,326,566
Corporate and Eliminations (b)(4,367,973)(2,294,888)(2,856,651)
$5,544,6484,955,1475,091,366

(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 U.S. 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 and nine-month periods ended October 1, 2017 and September 25, 2016.

Quarter EndedNine Months Ended
October 1,September 25,October 1,September 25,
2017201620172016
Europe$467,740452,834921,467905,081
Latin America174,446154,985339,071307,949
Asia Pacific97,04382,926250,536223,881
Net revenues$739,229690,7451,511,0741,436,911

The following table presents consolidated net revenues by brand portfolio for the quarters and nine-month periods ended October 1, 2017 and September 25, 2016.

Quarter EndedNine Months Ended
October 1,September 25,October 1,September 25,
2017201620172016
Franchise brands$827,282773,4151,803,7441,642,057
Partner brands485,747493,738928,724979,051
Hasbro gaming280,097229,850549,736456,516
Emerging brands198,376182,754331,467312,258
Net revenues$1,791,5021,679,7573,613,6713,389,882

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 $424,836 and $951,386 for the quarter and nine months ended October 1, 2017, respectively. For the quarter and nine months ended September 25, 2016, revenues were $409,528 and $868,373, respectively. Hasbro believes its gaming portfolio is a competitive differentiator and views it in its entirety.