(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 marketed across toys, games and 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 puzzles, 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 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. During the third quarter of 2015, the company sold its remaining manufacturing operations in East Longmeadow, Massachusetts and Waterford, Ireland.

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 recent 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 2015, 2014 and 2013 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

2015
U.S. and Canada	$	2,225,518	5,339	430,707	14,946	3,508	2,654,270
International		1,971,875	15	255,365	20,434	7,029	2,345,847
Entertainment and Licensing		244,685	23,144	76,868	16,251	387	567,753
Global Operations (a)		5,431	1,583,665	12,022	70,794	83,304	2,410,142
Corporate and eliminations (b)		-	(1,612,163)	(83,029)	32,902	47,794	(3,257,295)
Consolidated Total	$	4,447,509	-	691,933	155,327	142,022	4,720,717

2014
U.S. and Canada	$	2,022,443	5,957	334,702	20,689	1,131	3,663,497
International		2,022,997	170	270,505	23,086	3,063	2,422,046
Entertainment and Licensing		219,465	22,401	60,550	21,827	807	783,878
Global Operations (a)		12,302	1,564,654	15,767	69,442	71,763	2,433,888
Corporate and eliminations (b)		-	(1,593,182)	(46,149)	22,922	36,624	(4,785,209)
Consolidated Total	$	4,277,207	-	635,375	157,966	113,388	4,518,100

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	(3,770,806)
Consolidated Total	$	4,082,157	-	467,093	180,985	112,031	4,393,221

(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. Furthermore, Corporate and eliminations includes elimination of inter-company income statement transactions. One such example includes licensing and service arrangements with affiliates. Payments received in advance from affiliates are recognized as revenue and eliminated in consolidation as earned and payment becomes assured over the life of the contract. During 2015 and 2014, affiliate licensing and service fees of $265,595 and $541,036, respectively,that were received in 2014 and 2013, respectively, were recognized as revenue and eliminated in consolidation. 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 three fiscal years ended December 27, 2015.

	2015		2014	2013

Europe	$	1,236,846	1,258,078	1,190,350
Latin America		426,109	463,512	407,710
Asia Pacific		308,920	301,407	274,920
Net revenues	$	1,971,875	2,022,997	1,872,980

The following table presents consolidated net revenues by classes of principal products for the three fiscal years ended December 27, 2015.

	2015		2014	2013

Boys	$	1,775,917	1,483,952	1,237,611
Games		1,276,532	1,259,782	1,311,205
Girls		798,240	1,022,633	1,001,704
Preschool		596,820	510,840	531,637
Net revenues	$	4,447,509	4,277,207	4,082,157

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.

	2015		2014		2013
Net revenues
United States	$	2,278,613		2,040,476		1,960,477
International		2,168,896		2,236,731		2,121,680
	$	4,447,509		4,277,207		4,082,157

Long-lived assets¹
United States	$	932,790		977,035		1,021,063
International		178,239		178,420		185,520
	$	1,111,029		1,155,455		1,206,583

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%, 9% and 9%, respectively, of consolidated net revenues during 2015, 16%, 9% and 8%, respectively, of consolidated net revenues during 2014 and 16%, 10% and 9%, respectively, of consolidated net revenues during 2013. These sales 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' 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.