Hasbro 2006 Annual Report Download - page 62

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(3) Property, Plant and Equipment
2006 2005
Land and improvements ........................................ $ 6,623 6,836
Buildings and improvements ..................................... 186,519 174,183
Machinery and equipment ....................................... 318,835 296,607
511,977 477,626
Less accumulated depreciation.................................... 378,979 348,646
132,998 128,980
Tools, dies and molds, net of amortization ........................... 48,728 35,065
$181,726 164,045
Expenditures for maintenance and repairs which do not materially extend the life of the assets are charged
to operations.
(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 sheet.
The Company performs an annual impairment test for 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 31,
2006, no such events occurred. The Company completed its annual impairment tests in the fourth quarters of
2006, 2005 and 2004, which indicated that there was no impairment.
A portion of the Company’s goodwill and other intangible assets reside in the Corporate segment of the
business. For purposes of testing pursuant to Statement of Financial Accounting Standards No. 142, these
assets are allocated to the reporting units within the Company’s operating segments. In 2006, the Company
realigned its business, which resulted in a change in the Company’s operating segments (see note 15). The
Company has adjusted its prior year information to reflect the current reporting structure and reallocated
Corporate segment amounts. Changes in carrying amount of goodwill, by operating segment for the years
ended December 31, 2006 and December 25, 2005 are as follows:
North
America International Total
2006
Balance at December 25, 2005 ....................... $294,378 172,683 $467,061
Foreign exchange translation ......................... — 2,877 2,877
Balance at December 31, 2006 ....................... $294,378 175,560 $469,938
2005
Balance at December 26, 2004 ....................... $294,378 175,348 $469,726
Foreign exchange translation ......................... — (2,665) (2,665)
Balance at December 31, 2005 ....................... $294,378 172,683 $467,061
51
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)