Hasbro 2009 Annual Report Download - page 67

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Company’s operating segments. Changes in the carrying amount of goodwill, by operating segment, for the
years ended December 27, 2009 and December 28, 2008 are as follows:
U.S. and Canada International
Entertainment and
Licensing Total
2009
Balance at December 28, 2008 ...... $300,496 174,001 — 474,497
Foreign exchange translation........ — 1,593 — 1,593
Disposal....................... — (159) — (159)
Reallocation .................... (3,518) (2,978) 6,496 —
Balance at December 27, 2009 ...... $296,978 172,457 6,496 475,931
2008
Balance at December 30, 2007 ...... $293,891 177,286 — 471,177
Goodwill acquired ............... 6,605 2,217 — 8,822
Foreign exchange translation........ — (5,502) — (5,502)
Balance at December 28, 2008 ...... $300,496 174,001 — 474,497
In January 2008 the Company acquired Cranium, Inc. (“Cranium”), a developer and marketer of
children’s and adult board games, in order to supplement its existing game portfolio, for a total cost of
approximately $68,000. Based on the allocation of the purchase price, property rights related to acquired
product lines of approximately $68,500 were recorded as intangible assets in connection with the acquisition.
These property rights are being amortized over a fifteen year estimated useful life. Goodwill of $8,822 was
also recorded as a result of the transaction. The consolidated statement of operations of the Company for 2008
includes the operations of Cranium from the closing date of January 25, 2008.
A summary of the Company’s other intangibles, net at December 27, 2009 and December 28, 2008 is as
follows:
2009 2008
Acquired product rights ...................................... $1,099,541 1,080,628
Licensed rights of entertainment properties ........................ 256,555 211,555
Accumulated amortization . . . ................................. (877,267) (799,509)
Amortizable intangible assets . ................................. 478,829 492,674
Product rights with indefinite lives .............................. 75,738 75,738
$ 554,567 568,412
In May 2009 the Company amended its license agreement with Lucas Licensing, Ltd. (“Lucas”) related
to the STAR WARS brand. The amendment included the extension of the term of the license for an additional
two years, from the end of 2018 to the end of 2020. In connection with the extension of the license rights,
$45,000 was recorded as an intangible asset during 2009 and will be amortized over the term of the extension.
The amendment also provided for the settlement of certain royalty audit issues, primarily related to contractual
interpretations associated with the computation of royalties dating back to 1999, and the clarification of certain
terms and interpretations of the agreement on a prospective basis through the end of the term, including the
scope of licensed rights to future developed properties by Lucas.
In the second quarter of fiscal 2008, the Company purchased all of the intellectual property rights related
to the TRIVIAL PURSUIT brand from Horn Abbot Ltd. and Horn Abbot International Limited (together the
57
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)