Segment Reporting

12 Months Ended

Dec. 25, 2011

Segment Reporting [Abstract]

Segment Reporting

(18)           Segment Reporting

Segment and Geographic Information

Hasbro is a worldwide leader in children’s and family leisure time products and services, including toys, games and licensed products ranging from traditional to high-tech and digital. 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 boys' action figures, vehicles and playsets, girls' toys, electronic toys and games, plush products, preschool toys and infant products, electronic interactive products, toy-related specialty products, traditional board games and puzzles, DVD-based games and trading card and role-playing games within the United States and Canada. Within the International segment, the Company markets and sells both toy and certain game products in markets outside of the U.S. and Canada, primarily the European, Asia Pacific, and Latin and South American regions. The Company’s Entertainment and Licensing segment includes the Company’s lifestyle licensing, digital gaming, movie, television and online entertainment operations. The Global Operations segment is responsible for manufacturing and 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, 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 foreign exchange rates fixed at the beginning of the year, with adjustments to actual 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 fiscal years 2011, 2010 and 2009 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise.

Information by segment and a reconciliation to reported amounts are as follows:

	Revenues from External Customers	Affiliate Revenue	Operating Profit (Loss)	Depreciation and Amortization	Capital Additions	Total Assets
	---------------	------------	----------	---------------	------------	----------
2011
U.S. and Canada	$2,253,458	16,259	278,356	24,389	1,199	5,225,099
International	1,861,901	201	270,578	21,348	4,296	2,062,928
Entertainment and Licensing	162,233	883	42,784	13,822	3,365	1,022,008
Global Operations (a)	7,997	1,628,852	(7,948)	77,883	70,956	1,974,951
Corporate and eliminations (b)	-	(1,646,195)	10,211	23,026	19,586	(6,154,212)
	-------------	-------------	------------	-----------	------------	--------------
Consolidated Total	$4,285,589	-	593,981	160,468	99,402	4,130,774
	========	========	=======	======	=======	========
2010
U.S. and Canada	$2,299,547	16,124	349,594	25,508	1,473	4,571,597
International	1,559,927	69	209,704	20,378	5,554	1,672,326
Entertainment and Licensing	136,488	-	43,234	11,047	8,888	861,971
Global Operations (a)	6,199	1,727,133	18,741	64,123	75,015	1,542,896
Corporate and eliminations (b)	-	(1,743,326)	(33,414)	25,274	21,667	(4,555,564)
	-------------	-------------	------------	-----------	------------	--------------
Consolidated Total	$4,002,161	-	587,859	146,330	112,597	4,093,226
	========	========	=======	======	=======	========
2009
U.S. and Canada	$2,447,943	10,502	380,580	52,161	2,060	3,901,598
International	1,459,476	165	162,159	28,201	4,339	1,519,542
Entertainment and Licensing	155,013	-	65,572	16,656	1,002	711,631
Global Operations (a)	5,515	1,503,622	9,172	69,764	67,661	1,012,597
Corporate and eliminations (b)	-	(1,514,289)	(28,885)	14,181	29,067	(3,248,476)
	-------------	-------------	------------	-----------	------------	--------------
Consolidated Total	$4,067,947	-	588,598	180,963	104,129	3,896,892
	========	========	=======	======	=======	========

(a) The Global Operations segment derives substantially all of its revenues, and thus its operating results, from intersegment activities.

(b) Certain intangible assets, primarily goodwill, which benefit multiple operating segments are reflected as Corporate assets for segment reporting purposes. In accordance with accounting standards related to impairment testing, these amounts have been allocated to the reporting unit which benefits from their use. In addition, 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 the Corporate segment.

The following table represents consolidated International segment net revenues by major geographic region for the three fiscal years ended December 25, 2011.

	2011	2010	2009
	-------	-------	-------
Europe	$1,254,427	1,057,937	1,032,096
Latin America/Mexico	334,887	281,835	226,532
Asia Pacific	272,587	220,155	200,848
	--------------	--------------	--------------
Net revenues	$1,861,901	1,559,927	1,459,476
	========	========	========

The following table presents consolidated net revenues by classes of principal products for the three fiscal years ended December 25, 2011.

	2011	2010	2009
	-------	-------	-------
Boys	$1,821,544	1,344,899	1,452,444
Games and puzzles	1,166,977	1,293,772	1,340,886
Girls	741,394	830,383	790,817
Preschool	552,979	532,483	469,932
Other	2,695	624	13,868
	--------------	--------------	--------------
Net revenues	$4,285,589	4,002,161	4,067,947
	========	========	========

During 2011, revenues from TRANSFORMERS and BEYBLADE products accounted for 11.3% and 11.1% of consolidated net revenues, respectively. During 2010, revenues from NERF products accounted for 10.3% of consolidated net revenues. During 2009, revenues from TRANSFORMERS products accounted for 14.5% of consolidated net revenues. No other individual product lines accounted for 10% or more of consolidated net revenues in 2011, 2010 or 2009.

Information as to Hasbro’s operations in different geographical areas is presented below on the basis the Company uses to manage its business. Net revenues are categorized based on location of the customer, while long-lived assets (property, plant and equipment, goodwill and other intangibles) are categorized based on their location:

	2011	2010	2009
	--------	--------	--------
Net revenues
United States	$ 2,155,038	2,173,266	2,363,559
International	2,130,551	1,828,895	1,704,388
	-------------	-------------	-------------
	$ 4,285,589	4,002,161	4,067,947
	========	========	=======
Long-lived assets
United States	$   974,037	1,014,149	1,059,304
International	186,069	194,841	191,900
	-------------	-------------	-------------
	$ 1,160,106	1,208,990	1,251,204
	========	========	=======

Principal international markets include Europe, Canada, Mexico and Latin America, Australia, and Hong Kong.

Other Information

Hasbro markets its products primarily to customers in the retail sector. Although the Company closely monitors the creditworthiness of its customers, adjusting credit policies and limits as deemed appropriate, a substantial portion of its customers' ability to discharge amounts owed is generally dependent upon the overall retail economic environment.

Sales to the Company's three largest customers, Wal-Mart Stores, Inc., Toys “R” Us, Inc. and Target Corporation, amounted to 20%, 11% and 10%, respectively, of consolidated revenues during 2011, 23%, 11% and 12%, respectively, of consolidated net revenues during 2010 and 25%, 11% and 13%, respectively during 2009. These net revenues were primarily within the U.S. and Canada segment.

Hasbro purchases certain components used in its manufacturing process and certain finished products from manufacturers in the Far East. The Company's reliance on external sources of manufacturing can be shifted, over a period of time, to alternative sources of supply for products it sells, should such changes be necessary. However, if the Company were prevented from obtaining products from a substantial number of its current Far East suppliers due to political, labor or other factors beyond its control, the Company's operations would be disrupted, potentially for a significant period of time, while alternative sources of product were secured. The imposition of trade sanctions, quotas or other protectionist measures by the United States or the European Union against a class of products imported by Hasbro from, or the loss of “normal trade relations" status with, China could significantly increase the cost of the Company’s products imported into the United States or Europe.