Hasbro 2006 Annual Report Download - page 78

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Expected benefit payments under the international defined benefit pension plans for the five years
subsequent to 2006 and in the aggregate for the following five years are as follows:
2007 ................................................................ $ 949
2008 ................................................................ 1,027
2009 ................................................................ 1,075
2010 ................................................................ 1,294
2011 ................................................................ 1,367
2012-2016 ............................................................ 11,655
Postemployment Benefits
Hasbro has several plans covering certain groups of employees, which may provide benefits to such
employees following their period of active employment but prior to their retirement. These plans include
certain severance plans which provide benefits to employees involuntarily terminated and certain plans which
continue the Company’s health and life insurance contributions for employees who have left Hasbro’s employ
under terms of its long-term disability plan.
(12) Leases
Hasbro occupies certain offices and uses certain equipment under various operating lease arrangements.
The rent expense under such arrangements, net of sublease income which is not material, for 2006, 2005, and
2004 amounted to $34,603, $35,570, and $36,576, respectively.
Minimum rentals, net of minimum sublease income, which is not material, under long-term operating
leases for the five years subsequent to 2006 and in the aggregate are as follows:
2007 ............................................................... $ 28,149
2008 ............................................................... 25,529
2009 ............................................................... 21,733
2010 ............................................................... 10,979
2011 ............................................................... 10,487
Later years ........................................................... 22,914
$119,791
All leases expire prior to the end of 2018. Real estate taxes, insurance and maintenance expenses are
generally obligations of the Company. It is expected that in the normal course of business, leases that expire
will be renewed or replaced by leases on other properties; thus, it is anticipated that future minimum lease
commitments will not be less than the amounts shown for 2006.
In addition, Hasbro leases certain facilities which, as a result of restructurings, are no longer in use.
Future costs relating to such facilities were accrued as a component of the original charge and are not included
in the table above.
(13) Derivative Financial Instruments
Hasbro uses foreign currency forwards and options, generally purchased for terms of not more than
eighteen months, to reduce the impact of currency rate fluctuations on firmly committed and projected future
foreign currency transactions.
67
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)