Hasbro 2010 Annual Report Download - page 13

Download and view the complete annual report

Please find page 13 of the 2010 Hasbro annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 106

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106

U.S. and Canada
This segment engages in the marketing and sale of our product categories in the United States and
Canada. The U.S. and Canada segment’s strategy is based on promoting our brands through innovation and
reinvention of toys and games. This is accomplished through introducing new initiatives driven by consumer
and marketplace insights and leveraging opportunistic toy and game lines and licenses. This strategy leverages
off of efforts to increase consumer awareness of the Company’s core brands through entertainment experiences
such as motion pictures, television and publishing. Major 2010 brands and products included NERF, MARVEL
products, STAR WARS products, LITTLEST PET SHOP, TRANSFORMERS, PLAYSKOOL, MAGIC: THE
GATHERING, PLAY-DOH, FURREAL FRIENDS, and MONOPOLY.
International
The International segment engages in the marketing and sale of our product categories to retailers and
wholesalers in most countries in Europe, Asia Pacific and Latin and South America and through distributors in
those countries where we have no direct presence. In addition to growing core brands and leveraging
opportunistic toy lines and licenses, we seek to grow our international business by continuing to expand into
Eastern Europe and emerging markets in Asia and Latin and South America. In recent years, we expanded our
operations in Brazil, China, Russia, the Czech Republic, Romania and Korea. We will continue to expand
operations in emerging markets in future years through the establishment of subsidiaries or increased
involvement with our existing distributors. The Company began operations in Peru in 2010 and Colombia in
2011. Key international brands for 2010 included LITTLEST PET SHOP, NERF, TRANSFORMERS,
MONOPOLY, FURREAL FRIENDS, PLAY-DOH, PLAYSKOOL, STAR WARS, and BEYBLADE.
Entertainment and Licensing
Our Entertainment and Licensing segment includes our lifestyle licensing, digital licensing, movie,
television and online entertainment operations. Our lifestyle licensing category seeks to promote our brands
through the out-licensing of our intellectual properties to third parties for promotional and merchandising uses
in businesses which do not compete directly with our own product offerings, such as apparel, publishing, home
goods and electronics.
Our digital licensing category seeks to promote our brands through the out-licensing of our intellectual
properties in the digital area, such as for applications on mobile phones, personal computers, and video game
consoles. This is primarily done through our long-term strategic alliance with EA, which provides EA with the
exclusive worldwide rights to create digital games for all of these major platforms based on most of our toy
and game intellectual properties.
As noted above, we own a 50% interest in a joint venture with Discovery that operates a television
network in the United States, THE HUB, which debuted in October 2010. THE HUB is dedicated to providing
high-quality children’s and family entertainment and educational programming. To support our strategic
objective of further developing our brands through television entertainment, we established a wholly-owned
television studio, Hasbro Studios, that produces programming for distribution on THE HUB network in the
U.S. and for international distribution on other networks. The programming is primarily based on our brands,
but also includes third-party branded content. Hasbro Studios has a coordinated development process that
aligns with THE HUB.
In addition to the above, we also seek to promote and leverage our brands through major motion pictures.
In 2009, TRANSFORMERS: REVENGE OF THE FALLEN and G.I. JOE: THE RISE OF COBRA were released
based on our brands. In July 2011, TRANSFORMERS: DARK OF THE MOON is expected to be released. In
addition, we also have a long-term strategic relationship with Universal Pictures to produce at least three
motion pictures based on certain of our core brands, with an option to produce two additional movies. The
first movies under this relationship, BATTLESHIP and OUIJA, are expected to be released in 2012.
Promotion of our brands through major motion pictures and television programming provides our
consumers with the ability to experience our brands in a different format which we believe can result in
3