Hasbro 2007 Annual Report Download - page 81

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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., Target Corporation and Toys “R”
Us, Inc., amounted to 24%, 12% and 11%, respectively, of consolidated net revenues during 2007, 24%, 13%
and 11% during 2006 and 24%, 12% and 12% during 2005. These net revenues were primarily related to the
North American 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 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 by, the People’s Republic of
China could significantly increase the cost of the Company’s products imported into the United States or
Europe.
73
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)