Hasbro 2007 Annual Report Download - page 59

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Components of accumulated other comprehensive earnings at December 30, 2007 and December 31, 2006
are as follows:
2007 2006
Foreign currency translation adjustments ............................ $104,872 68,984
Changes in value of available-for-sale securities, net of tax ............... 1,489 1,932
Gains (losses) on cash flow hedging activities, net of tax ................ (11,080) (2,116)
Unrecognized pension and postretirement amounts, net of tax ............. (20,343) (57,614)
$ 74,938 11,186
(3) Property, Plant and Equipment
2007 2006
Land and improvements ........................................ $ 6,940 6,623
Buildings and improvements ..................................... 192,928 186,519
Machinery and equipment ....................................... 344,967 318,835
544,835 511,977
Less accumulated depreciation.................................... 401,272 378,979
143,563 132,998
Tools, dies and molds, net of amortization ........................... 44,397 48,728
$187,960 181,726
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 sheets.
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 30,
2007, no such events occurred. The Company completed its annual impairment tests in the fourth quarters of
2007, 2006 and 2005, 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, “Goodwill
and Other Intangible Assets”, these assets are allocated to the reporting units within the Company’s operating
51
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)