(19) Segment Reporting

Segment and Geographic Information

Hasbro is a worldwide leader in children's and family leisure time products and services with a broad portfolio of brands and entertainment properties across 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 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 lifestyle licensing, digital gaming, movie and television 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 2013, 2012 and 2011 business restructurings, 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 2013, 2012 and 2011 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

2013
U.S. and Canada	$	2,006,079		4,412			313,746			21,459		553		3,066,301
International		1,872,980		401			235,482			25,036		13,908		2,233,115
Entertainment and Licensing		190,955		20,521			45,476			22,647		468		691,795
Global Operations (a)		12,143		1,508,303			6,712			65,477		62,696		2,172,816
Corporate and eliminations (b)		-		(1,533,637	)		(134,323	)		46,366		34,406		(3,761,760	)
Consolidated Total	$	4,082,157		-			467,093			180,985		112,031		4,402,267

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

(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. Corporate and eliminations also includes the elimination of inter-company balance sheet amounts. During 2013, certain inter-company balances were settled between each of the U.S. and Canada segment, Entertainment and Licensing segement and Corporate and eliminations. This reduced the amount of reported total assets of the U.S. and Canada and Entertainment and Licensing segments and increased the amount reported in Corporate and eliminations at year-end 2013 compared to year-end 2012 and 2011.

The following table represents consolidated International segment net revenues by major geographic region for the three fiscal years ended December 29, 2013.

	2013		2012		2011

Europe	$	1,190,350		1,154,310		1,254,427
Latin America		407,710		362,689		334,887
Asia Pacific		274,920		265,120		272,587
Net revenues	$	1,872,980		1,782,119		1,861,901

The following table presents consolidated net revenues by classes of principal products for the three fiscal years ended December 29, 2013.

	2013		2012		2011

Boys	$	1,237,611		1,577,010		1,821,544
Games		1,311,205		1,192,090		1,169,672
Girls		1,001,704		792,292		741,394
Preschool		531,637		527,591		552,979
Net revenues	$	4,082,157		4,088,983		4,285,589

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.

	2013		2012		2011
Net revenues
United States	$	1,960,477		2,044,341		2,155,038
International		2,121,680		2,044,642		2,130,551
	$	4,082,157		4,088,983		4,285,589

Long-lived assets
United States	$	1,021,063		940,536		974,037
International		185,520		181,462		186,069
	$	1,206,583		1,121,998		1,160,106

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 16%, 10% and 9%, respectively, of consolidated revenues during 2013, 17%, 11% and 10%, respectively, of consolidated revenues during 2012 and 20%, 11% and 10%, respectively, of consolidated net revenues during 2011. 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 multi-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.