Hasbro 2007 Annual Report Download - page 60

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segments. Changes in carrying amount of goodwill, by operating segment for the years ended December 30,
2007 and December 31, 2006 are as follows:
North
America International Total
2007
Balance at December 31, 2006 . . ...................... $294,378 175,560 469,938
Foreign exchange translation .......................... — 1,239 1,239
Balance at December 30, 2007 . . ...................... $294,378 176,799 471,177
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
A summary of the Company’s other intangibles, net at December 30, 2007 and December 31, 2006 is as
follows:
2007 2006
Acquired product rights ....................................... $925,092 903,182
Licensed rights of entertainment properties ......................... 211,555 211,555
Accumulated amortization...................................... (726,153) (658,218)
Amortizable intangible assets . . ................................. 410,494 456,519
Product rights with indefinite lives ............................... 75,738 75,738
$ 486,232 532,257
In July 2007, with the exception of rights to DUNGEONS & DRAGONS, the Company reacquired the
remaining digital gaming rights for its owned or controlled properties held by Infogrames Entertainment SA
(Infogrames). The acquisition price of $19,000 included $18,000 in cash and $1,000 of non-cash consideration
in the form of the return of 39 shares of preferred stock held by the Company in a subsidiary of Infogrames.
These rights were previously held by Infogrames on an exclusive basis as a result of a license agreement. The
consideration to reacquire these rights, which represents fair value, is included as a component of other
intangible assets in the consolidated balance sheet and is being amortized over a period of approximately
5 years.
The Company will continue to incur amortization expense related to the use of acquired and licensed
rights to produce various products. The amortization of these product rights will fluctuate depending on related
projected revenues during an annual period, as well as rights reaching the end of their useful lives. The
Company currently estimates continuing amortization expense for the next five years to be approximately:
2008 ................................................................ $71,000
2009 ................................................................ 69,000
2010 ................................................................ 42,000
2011 ................................................................ 40,100
2012 ................................................................ 40,200
Subsequent to December 30, 2007, the Company announced that it had agreed to acquire Cranium, Inc.
(“Cranium”) for a base purchase price of $77,500, subject to adjustment based on the preliminary amount of
52
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)