Segment Reporting

12 Months Ended

Dec. 30, 2012

Segment Reporting [Abstract]

Segment Reporting

(19)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, including substantially all costs incurred related to the 2012 business restructuring, 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 fiscal years 2012, 2011 and 2010 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
2012
U.S. and Canada	$	2,116,297		5,309			319,072			24,899		629		6,041,893
International		1,782,119		381			215,489			21,534		5,000		2,176,021
Entertainment and Licensing		181,430		10,559			53,191			16,123		1,064		1,164,715
Global Operations (a)		9,137		1,480,582			(15,964	)		66,053		61,770		2,493,976
Corporate and eliminations (b)		-		(1,496,831	)		(20,003	)		21,678		43,628		(7,551,218	)
Consolidated Total	$	4,088,983		-			551,785			150,287		112,091		4,325,387
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

(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 and Eliminations.

The following table represents consolidated International segment net revenues by major geographic region for the three fiscal years ended December 30, 2012.

	2012		2011		2010
Europe	$	1,154,310		1,254,427		1,057,937
Latin America		362,689		334,887		281,835
Asia Pacific		265,120		272,587		220,155
Net revenues	$	1,782,119		1,861,901		1,559,927

The following table presents consolidated net revenues by classes of principal products for the three fiscal years ended December 30, 2012. Certain amounts in 2011 and 2010 have been reclassified to conform to the 2012 presentation.

	2012		2011		2010
Boys	$	1,577,010		1,821,544		1,345,523
Games		1,192,090		1,169,672		1,293,772
Girls		792,292		741,394		830,383
Preschool		527,591		552,979		532,483
Net revenues	$	4,088,983		4,285,589		4,002,161

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:

	2012		2011		2010
Net revenues
United States	$	2,044,341		2,155,038		2,173,266
International		2,044,642		2,130,551		1,828,895
	$	4,088,983		4,285,589		4,002,161
Long-lived assets
United States	$	940,536		974,037		1,014,149
International		181,462		186,069		194,841
	$	1,121,998		1,160,106		1,208,990

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 17%, 11% and 10%, respectively, of consolidated revenues during 2012, 20%, 11% and 10%, respectively, of consolidated revenues during 2011 and 23%, 11% and 12%, respectively, of consolidated net revenues during 2010. 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.

The Company has agreements which allow it to develop and market products based on properties owned by third parties including its license with Marvel Entertainment, LLC and Marvel Characters B.V. (together "Marvel") and its license with Lucas Licensing Ltd. and Lucasfilm Ltd. (together "Lucas"). These licenses have mutli-year terms and provide the Company with the right to market and sell designated classes of products based on Marvel's portfolio of brands, including SPIDER-MAN and THE AVENGERS, and Lucas's STAR WARS brand. Hasbro's net revenues from these licenses can be significant in any given year based on the level of third party entertainment. Both Marvel and Lucas are owned by The Walt Disney Company.