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Segment Reporting
6 Months Ended
Jul. 01, 2018
Segment Reporting (Thousands of Dollars) [Abstract]  
Segment Reporting

(11) 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 six months 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 quarter and six-month periods ended July 1, 2018 and July 2, 2017 are as follows.

Quarter Ended
July 1, 2018July 2, 2017
Net revenuesExternalAffiliateExternalAffiliate
U.S. and Canada$459,3322,596494,4272,455
International380,444226426,56415
Entertainment and Licensing64,6513,09051,4943,511
Global Operations (a)31342,48221403,541
Corporate and Eliminations(b)-(348,394)-(409,522)
$904,458-972,506-

Six Months Ended
July 1, 2018July 2, 2017
Net revenuesExternalAffiliateExternalAffiliate
U.S. and Canada$823,6294,729946,0044,846
International668,389288771,84515
Entertainment and Licensing128,6726,666104,2237,013
Global Operations (a)109595,80297663,770
Corporate and Eliminations(b)-(607,485)-(675,644)
$1,620,799-1,822,169-

Quarter EndedSix Months Ended
July 1,July 2,July 1,July 2,
Operating profit (loss)2018201720182017
U.S. and Canada$76,23181,55752,848146,311
International17316,884(55,915)17,428
Entertainment and Licensing18,62711,32432,53322,670
Global Operations (a)(9,978)(7,607)(7,802)(6,774)
Corporate and Eliminations (b)2,535(2,174)(14,495)(1,308)
$87,58899,9847,169178,327

July 1,July 2,December 31,
Total assets201820172017
U.S. and Canada$2,912,8252,799,9602,749,384
International2,048,1222,132,9922,499,985
Entertainment and Licensing794,799827,185626,193
Global Operations3,689,7212,502,5462,819,768
Corporate and Eliminations (b)(4,331,611)(3,349,940)(3,405,347)
$5,113,8564,912,7435,289,983

(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 budgeted 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 six-month periods ended July 1, 2018 and July 2, 2017.

Quarter EndedSix Months Ended
July 1,July 2,July 1,July 2,
2018201720182017
Europe$199,575237,607355,137453,727
Latin America96,40199,869162,362164,625
Asia Pacific84,46889,088150,890153,493
Net revenues$380,444426,564668,389771,845

The following table presents consolidated net revenues by brand portfolio for the quarters and six-month periods ended July 1, 2018 and July 2, 2017.

Quarter EndedSix Months Ended
July 1,July 2,July 1,July 2,
2018201720182017
Franchise brands$506,535552,435868,2411,001,594
Partner brands208,005230,015408,597442,977
Hasbro gaming134,275133,872239,502269,639
Emerging brands55,64356,184104,459107,959
Net revenues$904,458972,5061,620,7991,822,169

For the quarter and six months ended July 2, 2017, revenues of $6,717 and $25,132, respectively, were reclassified from Emerging Brands to Franchise Brands to conform to the presentation for the quarter and six months ended July 1, 2018.

Hasbro's total gaming category, including all gaming net revenues, most notably MAGIC: THE GATHERING and MONOPOLY, totaled $312,773 and $516,315 for the quarter and six-months ended July 1, 2018, respectively. For the quarter and six-months ended July 2, 2017, total gaming net revenues were $273,261 and $526,550, respectively.