Hasbro 2009 Annual Report Download - page 72

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on the Company’s common stock price, the Company had the right to call the debentures under this provision.
As of December 27, 2009, the Company had the right to call the debentures. The holders of these debentures
may also put the notes back to Hasbro in December 2011 and December 2016. At these times, the purchase
price may be paid in cash, shares of common stock or a combination of the two, at the discretion of the
Company.
At December 27, 2009, as detailed above, the Company’s 6.125% Notes mature in 2014. All of the
Company’s other long-term borrowings have contractual maturities that occur subsequent to 2014.
At December 27, 2009, the fair values of the 6.125% Notes, 6.30% Notes, 2.75% Convertible Debentures
and the 6.60% Debentures were approximately $465,545, $375,585, $373,515 and $110,697, respectively. At
December 28, 2008, the fair values of the 6.30% Notes, 2.75% Convertible Debentures and the 6.60% Deben-
tures were approximately $335,000, $334,200 and $100,300, respectively. The fair value of the convertible
debt is based on an average of the prices of trades occurring around the balance sheet date. The fair values of
the Company’s other long-term borrowings are measured using a combination of broker quotations when
available and discounted future cash flows. The fair value of the interest rate swaps are measured based on the
present value of future cash flows using the swap curve as of the date of valuation.
(9) Income Taxes
Income taxes attributable to earnings before income taxes are:
2009 2008 2007
Current
United States ...................................... $ 87,053 68,514 42,613
State and local ..................................... 4,142 251 5,497
International....................................... 44,436 40,530 43,691
135,631 109,295 91,801
Deferred
United States ...................................... 17,387 22,917 33,707
State and local ..................................... 993 1,964 2,889
International....................................... 756 113 982
19,136 24,994 37,578
$154,767 134,289 129,379
Certain income tax (benefits) expenses, not reflected in income taxes in the consolidated statements of
operations totaled $(2,905) in 2009, $(29,287) in 2008, and $2,542 in 2007. These income tax (benefits)
expenses relate primarily to derivative and pension amounts recorded in AOCE and stock options. In 2009,
2008, and 2007, the deferred tax portion of the total (benefit) expense was $(1,041), $(26,555), and $20,163,
respectively.
62
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)