Hasbro 2010 Annual Report Download - page 65

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(3) Property, Plant and Equipment
2010 2009
Land and improvements ........................................ $ 6,726 6,766
Buildings and improvements ..................................... 197,494 199,595
Machinery, equipment and software ................................ 398,896 393,678
603,116 600,039
Less accumulated depreciation.................................... 430,193 431,564
172,923 168,475
Tools, dies and molds, net of accumulated depreciation ................. 60,657 52,231
$233,580 220,706
Expenditures for maintenance and repairs which do not materially extend the life of the assets are charged
to operations as incurred.
(4) Goodwill and Intangibles
Goodwill and certain intangible assets relating to rights obtained in the Company’s acquisition of Milton
Bradley in 1984 and Tonka in 1991 are not amortized. These rights were determined to have indefinite lives
and total approximately $75,700. The Company’s other intangible assets are amortized over their remaining
useful lives, and accumulated amortization of these other intangibles is reflected in other intangibles, net in the
accompanying consolidated balance sheets.
The Company performs an annual impairment test on goodwill and intangible assets with indefinite lives.
This annual impairment test is performed in the fourth quarter of the Company’s fiscal year. In addition, if an
event occurs or circumstances change that indicate that the carrying value may not be recoverable, the
Company will perform an interim impairment test at that time. For the three fiscal years ended December 26,
2010, no such events occurred. The Company completed its annual impairment tests in the fourth quarters of
2010, 2009 and 2008 and had no impairment charges.
A portion of the Company’s goodwill and other intangible assets reside in the Corporate segment of the
business. For purposes of impairment testing, these assets are allocated to the reporting units within the
Company’s operating segments. Changes in the carrying amount of goodwill, by operating segment, for the
years ended December 26, 2010 and December 27, 2009 are as follows:
U.S. and Canada International
Entertainment and
Licensing Total
2010
Balance at December 27, 2009 ...... $296,978 172,457 6,496 475,931
Foreign exchange translation........ — (1,118) — (1,118)
Balance at December 26, 2010 ...... $296,978 171,339 6,496 474,813
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
55
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)