Hasbro 2008 Annual Report Download - page 61

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2007. Prior to their repurchase, the Company was required to assess if these warrants, classified as a liability,
had a more dilutive impact on earnings per share when treated as an equity contract. For the years ended
December 30, 2007 and December 31, 2006, the warrants had a more dilutive impact on earnings per share
assuming they were treated as a liability and no adjustments to net earnings or equivalent shares was required.
(2) Other Comprehensive Earnings
The Company’s other comprehensive earnings (loss) for the years 2008, 2007 and 2006 consist of the
following:
2008 2007 2006
Foreign currency translation adjustments . . . .................. $(33,555) 35,888 26,429
Changes in value of available-for-sale securities, net of tax ....... (3,037) 221 (2,497)
Gain (loss) on cash flow hedging activities, net of tax ........... 73,184 (15,851) (7,412)
Change in unrecognized pension and postretirement amounts, net of
tax............................................... (52,582) 27,393 —
Minimum pension liability adjustment, net of tax ............... — — 1,991
Reclassifications to earnings, net of tax:
Net losses on cash flow hedging activities .................. 1,409 6,887 1,448
(Gain) loss on available-for-sale securities .................. 897 (664) 2,629
Amortization of unrecognized pension and postretirement
amounts ......................................... 1,002 2,099 —
Other comprehensive earnings (loss) ........................ $(12,682) 55,973 22,588
The related tax benefit (expense) of other comprehensive earnings items was $16,022, $(16,064), and
$273 for the years 2008, 2007 and 2006, respectively. Income taxes related to reclassification adjustments from
other comprehensive earnings of $763, $1,412 and $85 in 2008, 2007 and 2006, respectively, were included in
these amounts.
In the first quarter of 2007, in accordance with SFAS No. 158, the Company changed its measurement
date for certain of its defined benefit pension plans and its postretirement plan from September 30 to the
Company’s fiscal year-end date. As a result of this change, the assets and liabilities of these plans were
remeasured as of December 31, 2006, the 2006 fiscal year-end date of the Company. This remeasurement
resulted in an adjustment to accumulated other comprehensive earnings of $7,779 net of taxes of $4,765,
during the first quarter of 2007.
At December 31, 2006, the Company adopted the recognition provisions of SFAS 158, which required the
Company to recognize the funded status of defined benefit pension and postretirement plans as an asset or
liability in its statement of financial position and to recognize changes in that funded status in the year in
which the changes occur through comprehensive income. The adoption of this statement resulted in an
adjustment of $(26,750), net of taxes of $12,645, to accumulated other comprehensive income at December 31,
2006.
51
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)