Goodwill and Intangibles

12 Months Ended

Dec. 30, 2012

(4) Goodwill and Intangibles

Goodwill and certain intangible assets relating to rights obtained in the Company's acquisition of Milton Bradley in 1984 and Tonka in 1991 are not amortized. These rights were determined to have indefinite lives and total approximately $75,700. The Company's other intangible assets are amortized over their remaining useful lives, and accumulated amortization of these other intangibles is reflected in other intangibles, net in the accompanying consolidated balance sheets.

The Company performs an annual impairment test on goodwill and intangible assets with indefinite lives. This annual impairment test is performed in the fourth quarter of the Company's fiscal year. In addition, if an event occurs or circumstances change that indicate that the carrying value may not be recoverable, the Company will perform an interim impairment test at that time. For the three fiscal years ended December 30, 2012, no such events occurred. The Company completed its annual impairment tests in the fourth quarters of 2012, 2011 and 2010 concluding that the fair value of each reporting unit substantially exceeded the carrying value and therefore, no goodwill impairment charges were taken in each of the three years.

A portion of the Company's goodwill and other intangible assets reside in the Corporate segment of the business. For purposes of impairment testing, these assets are allocated to the reporting units within the Company's operating segments. Changes in the carrying amount of goodwill, by operating segment, for the years ended December 30, 2012 and December 25, 2011 are as follows:

	U.S. and Canada		International			Entertainment and Licensing		Total
2012
Balance at December 25, 2011	$	296,978		171,318			6,496		474,792
Foreign exchange translation		-		133			-		133
Balance at December 30, 2012	$	296,978		171,451			6,496		474,925

2011
Balance at December 26, 2010	$	296,978		171,339			6,496		474,813
Foreign exchange translation		-		(21	)		-		(21	)
Balance at December 25, 2011	$	296,978		171,318			6,496		474,792

A summary of the Company's other intangibles, net at December 30, 2012 and December 25, 2011 is as follows:

	2012			2011
Acquired product rights	$	751,016			757,531
Licensed rights of entertainment properties		256,555			256,555
Accumulated amortization		(666,650	)		(622,531	)
Amortizable intangible assets		340,921			391,555
Product rights with indefinite lives		75,738			75,738
Total other intangibles, net	$	416,659			467,293

The Company will continue to incur amortization expense related to the use of acquired and licensed rights to produce various products. The amortization of these product rights will fluctuate depending on brand activation related revenues during an annual period, as well as rights reaching the end of their useful lives. The Company currently estimates amortization expense related to the above intangible assets for the next five years to be approximately:

2013	$	50,000
2014		52,000
2015		46,000
2016		36,000
2017		36,000

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References+ Details