Segment Reporting

3 Months Ended

Apr. 01, 2018

Segment Reporting (Thousands of Dollars) [Abstract]

(10) 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 2018, nor were those of the comparable 2017 period representative of those actually experienced for the full year 2017. 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 1, 2018 and April 2, 2017 are as follows:

	Quarter Ended
	April 1, 2018				April 2, 2017
Net revenues	External		Affiliate		External		Affiliate
U.S. and Canada	$	364,297		2,133		451,577		2,391
International		287,945		62		345,281		-
Entertainment and Licensing		64,021		3,576		52,729		3,502
Global Operations (a)		78		253,320		76		260,229
Corporate and Eliminations(b)		-		(259,091)		-		(266,122)
	$	716,341		-		849,663		-

	Quarter Ended
	April 1,		April 2,
Operating profit (loss)	2018		2017
U.S. and Canada	$	(23,383)		64,754
International		(56,088)		544
Entertainment and Licensing		13,906		11,346
Global Operations (a)		2,176		833
Corporate and Eliminations (b)		(17,030)		866
	$	(80,419)		78,343

	April 1,		April 2,		December 31,
Total assets	2018		2017		2017
U.S. and Canada	$	2,745,209		2,618,808		2,749,384
International		2,033,928		1,964,343		2,499,985
Entertainment and Licensing		673,248		763,988		626,193
Global Operations		3,293,265		2,218,817		2,819,768
Corporate and Eliminations (b)		(4,016,578)		(2,920,086)		(3,405,347)
	$	4,729,072		4,645,870		5,289,983

(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 ended April 1, 2018 and April 2, 2017.

	Quarter Ended
	April 1,		April 2,
	2018		2017
Europe	$	155,562		216,120
Latin America		65,961		64,756
Asia Pacific		66,422		64,405
Net revenues	$	287,945		345,281

The following table presents consolidated net revenues by brand portfolio for the quarters ended April 1, 2018 and April 2, 2017.

	Quarter Ended
	April 1,		April 2,
	2018		2017
Franchise Brands	$	361,706		449,160
Partner Brands		200,592		212,962
Hasbro Gaming		105,227		135,766
Emerging Brands		48,816		51,775
Total	$	716,341		849,663

Franchise and Emerging Brands net revenues for the first quarter of 2017 have been restated to reflect the move of BABY ALIVE from Emerging Brands to Franchise Brands and the move of LITTLEST PET SHOP from Franchise Brands to Emerging Brands.

Hasbro's total gaming category, including all gaming revenue, most notably MAGIC: THE GATHERING and MONOPOLY, totaled $203,542 for the first quarter of 2018, compared to revenues of $253,289 for the first quarter of 2017.