Hasbro 2011 Annual Report Download

Download and view the complete annual report

Please find the complete 2011 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.

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ƫƫ ƫƫƫƫƫ ƫƫƫƫ ƫƫċƫƫƫƫ ƫƫƫĒƫƫƫ ƫƫ ƫƫ ƫƫ ƫ
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ƫƫđƫƫƫƫđƫƫƫąƫƫđƫƫƫƫƫđƫƫƫƫƫđƫƫġƫƫđƫƫƫ
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Table of contents

  • Page 1
    Æ«Ä'Æ«Æ« Æ«Ä'Æ« Æ«Æ«Ä'Æ«Æ« Ä¡Æ«Æ«Ä'Æ«Æ« Ěƫ Æ«Æ«Ä'Æ«Æ«   Æ«Æ«Ä'Æ«Æ«Æ«Æ«Æ«Ä'Æ«Æ« Æ«Æ«Ä' Æ«Æ«Ä'Æ«Æ« Æ« Æ«Æ«Ä'Æ«Æ« Ä¡Æ«Æ«Ä'Æ«Æ« Æ«Ä'Æ« Æ«Æ«Ä'Æ«Æ« Æ«Æ«Ä'Æ«Æ« Æ«Æ«Ä'Æ«Æ«     ...

  • Page 2
    ... years, we have invested in the infrastructure to capitalize on our innovation all around the world. Through new o ces in emerging markets, strong execution in mature markets and the build-out of our brand blueprint globally including digital gaming, entertainment and licensing capabilities - Hasbro...

  • Page 3
    ... in our international business and overall solid revenue growth for Hasbro during the fourth quarter and full year 2011, we did not meet our expectations for growth in the U.S. and Canada segment, including in the Games and Puzzles category. When we look to our success internationally, we know - and...

  • Page 4
    ... we had year-over-year comparisons for THE HUB, and during the quarter THE HUB posted 31% gains in total day against Kids 2 to 11. The network posted growth throughout 2011 and Hasbro Studios programming accounted for five of the top ten series for the year. As we further develop our licensing and...

  • Page 5
    ... with Hasbro brands. Playing Right Hasbro's heritage of playing right - for our customers, our environment, our communities and our employees - is embedded in our culture. We believe it will be the companies that recognize, systematically address and sustain strong corporate social responsibility...

  • Page 6
    ... Edward M. Philip Managing General Partner Highland Consumer Fund cer cer Executive Officers Brian D. Goldner President and Chief Executive O David D. R. Hargreaves Chief Operating O cer Deborah M. Thomas Senior Vice President and Chief Financial O Duncan J. Billing Global Chief Development O cer...

  • Page 7
    ...2007 2008 2009 2010 2011 $100 $100 $100 $97 $106 $97 $111 $64 $59 $127 $84 $85 $197 $96 $108 $135 $99 $114 Note: Data reï¬,ects Hasbro's fiscal year ends. Source: Data provided by Zacks Investment Research, Inc. Copyright @2012, Standard & Poors. All rights reserved. Used with permission...

  • Page 8
    ... EXCHANGE ACT OF 1934 For the fiscal year ended December 25, 2011 Commission file number 1-6682 (Exact Name of Registrant, As Specified in its Charter) Hasbro, Inc. Rhode Island (State of Incorporation) 05-0155090 (I.R.S. Employer Identification No.) 1027 Newport Avenue, Pawtucket, Rhode Island...

  • Page 9
    ... with Accountants on Accounting and Financial Disclosure ...Item 9A. Controls and Procedures ...Item 9B. Other Information ...Item 10. Item 11. Item 12. Item 13. Item 14. Item 15. PART III Directors, Executive Officers and Corporate Governance ...Executive Compensation ...Security Ownership...

  • Page 10
    ... motion pictures, and licensed products, ranging from traditional to high-tech and digital, under well-known brand names such as TRANSFORMERS, PLAYSKOOL, NERF, LITTLEST PET SHOP, MY LITTLE PONY, G.I. JOE, TONKA, MILTON BRADLEY, PARKER BROTHERS, CRANIUM and WIZARDS OF THE COAST. Hasbro also seeks to...

  • Page 11
    ... play, the Company also develops and markets products designed for collectors, which has been a key component of the success of the STAR WARS brand. Our games and puzzles category includes several well known lines, including MILTON BRADLEY, PARKER BROTHERS and WIZARDS OF THE COAST. These brand...

  • Page 12
    ... by television programming on THE HUB beginning in the first quarter of 2012. In 2011, sales in our preschool category also benefited from the introduction of several educational and interactive products under our licensing agreement with Sesame Workshop that provides us with the licensed rights to...

  • Page 13
    ... operations in emerging markets in future years through continued investment. Key international brands for 2011 included BEYBLADE products, TRANSFORMERS, NERF, LITTLEST PET SHOP, PLAY-DOH, FURREAL FRIENDS, PLAYSKOOL, MONOPOLY, STAR WARS products and MAGIC: THE GATHERING. Entertainment and Licensing...

  • Page 14
    .... The toy and game business is also characterized by customer order patterns which vary from year to year largely because of differences each year in the degree of consumer acceptance of product lines, product availability, marketing strategies and inventory policies of retailers, the dates of...

  • Page 15
    ... that we plan to employ to promote sales in 2012 are substantially the same as those we employed in 2011. Historically, we commit to the majority of our inventory production and advertising and marketing expenditures for a given year prior to the peak third and fourth quarter retail selling season...

  • Page 16
    ... offer in those product groups as well. In addition, Hasbro Studios produces television entertainment based primarily on our brands which appears on THE HUB in the U.S. and on other major networks internationally. We introduce many of our new products to major customers during the year prior to the...

  • Page 17
    ...and game companies in our product categories, as well as many smaller United States and international toy and game designers, manufacturers and marketers. We also compete with companies that offer branded entertainment focused on children and their families. Competition is based primarily on meeting...

  • Page 18
    ..., Head of Corporate Finance from 2008 to 2009; prior thereto, Senior Vice President and Controller from 2003 to 2008. (4) Prior thereto, Chief Marketing Officer, U.S. Toy Group since 2004; prior thereto, General Manager, Big Kids Division, since 2002. (5) Prior thereto, Vice President, Employment...

  • Page 19
    ... depends on our successful ability to develop, market and sell innovative toys, games and other entertainment offerings, and license our brands for products which are sought after by consumers, including both children and their parents. We need to do this in an environment of rapidly evolving...

  • Page 20
    ...compete with the offerings of video game suppliers, consumer electronics companies, digital media and social media companies, and other businesses outside of the traditional toy and game industry. There is no guarantee that: • Any of our brands, products or product lines will achieve popularity or...

  • Page 21
    ...will continue to be, highly competitive. We compete domestically and internationally with a wide array of large and small manufacturers, marketers, and sellers of toys, games, video games, digital media and other entertainment and consumer products, as well as with retailers. We face competitors who...

  • Page 22
    ... Hasbro Studios, which is responsible for developing and producing television entertainment media, based on our owned and licensed brands. The television programming developed by Hasbro Studios is offered in the United States on THE HUB and is distributed on other networks internationally. THE HUB...

  • Page 23
    ... costs and/or lost sales for our products. Our substantial sales and manufacturing operations outside the United States subject us to risks associated with international operations. We operate facilities and sell products in numerous countries outside the United States. For the year ended December...

  • Page 24
    ... and buy products, and sell products, in many different jurisdictions with many different foreign currencies. As a result, if the exchange rate between the United States dollar and a local currency for an international market in which we have significant sales or operations changes, our financial...

  • Page 25
    ... or promotional policies or patterns of our major customers could have a significant impact on us. We depend upon a relatively small retail customer base to sell the majority of our products. For the fiscal year ended December 25, 2011, Wal-Mart Stores, Inc., Toys "R" Us, Inc. and Target Corporation...

  • Page 26
    ... retail customers could negatively impact our revenues and result in higher bad debt expense. Our use of third-party manufacturers to produce the majority of our toy products, as well as certain other products, presents risks to our business. We own and operate two game and puzzle manufacturing...

  • Page 27
    ...executing this strategy, in the second quarter of 2011 we announced our creation of a Gaming Center of Excellence in Rhode Island. Our strategy to drive our gaming business in the future involves substantial changes in how we market our gaming products to consumers and how we position them at retail...

  • Page 28
    ... us to offer higher interest rates in order to sell new debt securities. The failure to receive financing on desirable terms, or at all, could damage our ability to support our future operations or capital needs or engage in other business activities. As of December 25, 2011, we had $1,384,895 of...

  • Page 29
    .... In addition, any product recall, regardless of direct costs of the recall, may harm consumer perceptions of our products and have a negative impact on our future revenues and results of operations. Governments and regulatory agencies in the markets where we manufacture and sell products may enact...

  • Page 30
    ..., computer viruses, security breaches, catastrophic events such as hurricanes, fires, floods, earthquakes, tornadoes, acts of war or terrorism and usage errors by our employees. The efficient operation and successful growth of our business depends on these information systems, including our ability...

  • Page 31
    .... Hasbro owns its corporate headquarters in Pawtucket, Rhode Island consisting of approximately 343,000 square feet, which is used by the U.S. and Canada, Global Operations and Entertainment and Licensing segments as well as for corporate functions. The Company also owns an adjacent building...

  • Page 32
    We are currently party to certain other legal proceedings, none of which we believe to be material to our business or financial condition. Item 4. Mine Safety Disclosures. None. 23

  • Page 33
    ... 6, 2012 was 9,100. See Part III, Item 12 of this report for the information concerning the Company's "Equity Compensation Plans". Dividends Declaration of dividends is at the discretion of the Company's Board of Directors and will depend upon the earnings and financial condition of the Company and...

  • Page 34
    ... the price of the Company's stock. The Company may suspend or discontinue the program at any time and there is no expiration date. Item 6. Selected Financial Data. (Thousands of dollars and shares except per share data and ratios) 2011 2010 Fiscal Year 2009 2008 2007 Statement of Operations Data...

  • Page 35
    ... play through innovative toys and games, digital media, lifestyle licensing and publishing and entertainment, including television programming and motion pictures. The Company's focus remains on growing core owned and controlled brands, developing new and innovative products which respond to market...

  • Page 36
    ... release in future years. In addition to using motion pictures to provide entertainment experiences for its brands, the Company established Hasbro Studios, an internal wholly-owned production studio, in 2009. Hasbro Studios is responsible for the creation and development of television programming...

  • Page 37
    During 2011, the Company established Hasbro's Gaming Center for Excellence in Rhode Island to centralize games marketing and development while building on Hasbro's strategy of re-imagining, re-inventing and re-igniting core brands as well as inventing new brands. The Company's business is highly ...

  • Page 38
    ... with current year presentation. 2011 2010 2009 Net revenues ...Costs and expenses: Cost of sales ...Royalties ...Product development ...Advertising ...Amortization of intangibles ...Program production cost amortization ...Selling, distribution and administration ...Operating profit ...Interest...

  • Page 39
    ... sales of NERF products as well as increased sales of MARVEL products, which benefited from the theatrical release of IRON MAN 2 in May 2010. Boys' toys sales were also positively impacted by the reintroduction of BEYBLADE products in the second half of 2010. Net revenues in the games and puzzles...

  • Page 40
    ... and KRE-O products benefited from the theatrical release of TRANSFORMERS: DARK OF THE MOON during 2011. Increased sales in the boys' toys category were slightly offset by decreased sales in the preschool, girls' toys, and games and puzzles categories. Decreased sales of PLAYSKOOL and TONKA products...

  • Page 41
    ...'s operating expenses, stated as percentages of net revenues, are illustrated below for the three fiscal years ended December 25, 2011: 2011 2010 2009 Cost of sales ...Royalties ...Product development ...Advertising ...Amortization of intangibles ...Program production cost amortization ...Selling...

  • Page 42
    ...the reorganization of Company's games business. The remaining increase primarily reflects increased shipping costs related to higher revenues as well as increased expenses from the Company's investments in emerging markets, on-line operations, licensing, entertainment and its internal systems. These...

  • Page 43
    ... to the Company's purchase of a 50% interest in THE HUB. The remaining decrease relates to lower management incentive and other compensation expenses in 2010 partially offset by higher marketing and sales costs related to emerging markets and television initiatives. Interest Expense Interest expense...

  • Page 44
    ...27, 2009, respectively. Hasbro generated $396,069, $367,981 and $265,623 of cash from its operating activities in 2011, 2010 and 2009, respectively. Operating cash flows in 2011, 2010 and 2009 included $80,983, $52,047 and $1,837, respectively, of cash used for television program production. In 2012...

  • Page 45
    ...the STAR WARS brand and approximately $26,500 used to acquire certain other intellectual properties. There were no investments or acquisitions in 2010. The Company commits to inventory production, advertising and marketing expenditures prior to the peak third and fourth quarter retail selling season...

  • Page 46
    ..., 2011, the Company had notes outstanding with par value of approximately $166,500 related to the Program. The Company has a revolving credit agreement (the "Agreement") which provides it with a $500,000 committed borrowing facility through December of 2014. The Agreement contains certain financial...

  • Page 47
    ...Company's toy and game brands, including animated and live-action programs and game shows. These costs are capitalized as they are incurred and amortized using the individual-film-forecast method, whereby these costs are amortized in the proportion that the current year's revenues bear to management...

  • Page 48
    ...which are distributed on THE HUB, our ability to achieve broad distribution and viewer acceptance in international markets, and success of our program-related toy, game and other merchandise. For the year ended December 25, 2011 we have $80,600 of program production costs included in other assets in...

  • Page 49
    ... upon rates of return at the measurement date on high quality corporate bond investments currently available and expected to be available during the period to maturity of the pension benefits. The Company's discount rate for its U.S. plans used for the calculation of 2011 pension expense averaged...

  • Page 50
    ... gains, to fully realize the future deductions or capital losses. Deferred tax liabilities represent expenses recognized on the Company's income tax return that have not yet been recognized in the Company's financial statements or income recognized in the financial statements that has not yet been...

  • Page 51
    ... from operations and funds available through its commercial paper program or lines of credit will allow the Company to meet these and other obligations described above. Financial Risk Management The Company is exposed to market risks attributable to fluctuations in foreign currency exchange rates...

  • Page 52
    ... shipping schedules. The business of the Company is characterized by customer order patterns which vary from year to year largely because of differences in the degree of consumer acceptance of a product line, product availability, marketing strategies, inventory levels, policies of retailers...

  • Page 53
    ... their year-end inventory purchases during this holiday selling season as they had anticipated, their demand for additional product earlier in the following fiscal year may be curtailed, thus negatively impacting the Company's future revenues. In addition, the bankruptcy or other lack of success of...

  • Page 54
    ...of the Company's management. Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with the standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and...

  • Page 55
    ... 600,000,000 shares; issued 209,694,630 shares in 2011 and 2010 ...Additional paid-in capital ...Retained earnings ...Accumulated other comprehensive (loss) earnings ...Treasury stock, at cost, 81,061,373 shares in 2011 and 72,278,515 shares in 2010 ...Total shareholders' equity ...Total liabilities...

  • Page 56
    ... Statements of Operations Fiscal Years Ended in December (Thousands of Dollars Except Per Share Data) 2011 2010 2009 Net revenues ...Costs and expenses Cost of sales ...Royalties ...Product development ...Advertising ...Amortization of intangibles ...Program production cost amortization ...Selling...

  • Page 57
    HASBRO, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows Fiscal Years Ended in December (Thousands of Dollars) 2011 2010 2009 Cash flows from operating activities Net earnings ...Adjustments to reconcile net earnings to net cash provided by operating activities: Depreciation of plant and...

  • Page 58
    HASBRO, INC. AND SUBSIDIARIES Consolidated Statements of Shareholders' Equity (Thousands of Dollars) Accumulated Other Comprehensive (Loss) Earnings Common Stock Additional Paid-in Capital Retained Earnings Treasury Stock Total Shareholders' Equity Balance, December 28, 2008 ...Net earnings ...

  • Page 59
    ... of certain of its accounts, including letters of credit, credit insurance, and requiring cash in advance of shipping. The Company records an allowance for doubtful accounts based on management's assessment of the business environment, customers' financial condition, historical collection experience...

  • Page 60
    ... trademarks, copyrights, patents, license agreements and other product-related rights. These rights were valued on their acquisition date based on the anticipated future cash flows from the underlying product line. The Company has certain intangible assets related to the Tonka and Milton Bradley...

  • Page 61
    ... consolidated statements of operations. Costs of Sales Cost of sales primarily consists of purchased materials, labor, manufacturing overheads and other inventoryrelated costs such as obsolescence. Royalties The Company enters into license agreements with inventors, designers and others for the use...

  • Page 62
    ... future use of the rights obtained under license, the non-recoverable portion of the guaranty is charged to expense at that time. Advertising Production costs of commercials are expensed in the fiscal year during which the production is first aired. The costs of other advertising and promotion...

  • Page 63
    ... in pension expense. Hasbro has a contributory postretirement health and life insurance plan covering substantially all employees who retire under any of its United States defined benefit pension plans and meet certain age and length of service requirements. The cost of providing these benefits on...

  • Page 64
    .... These hedges are considered to be perfectly effective under current accounting guidance. The interest rate swap contracts are with a number of major financial institutions in order to minimize counterparty credit risk. The Company believes that it is unlikely that any of its counterparties will...

  • Page 65
    HASBRO, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements - (Continued) (Thousands of Dollars and Shares Except Per Share Data) A reconciliation of net earnings and average number of shares for each of the three fiscal years ended December 25, 2011 is as follows: 2011 Basic Diluted ...

  • Page 66
    ... Notes to Consolidated Financial Statements - (Continued) (Thousands of Dollars and Shares Except Per Share Data) The related tax benefit of other comprehensive earnings items was $8,581, $5,327 and $1,322 for the years 2011, 2010 and 2009, respectively. Income tax expense (benefit) related to...

  • Page 67
    ... years ended December 25, 2011, no such events occurred. The Company completed its annual impairment tests in the fourth quarters of 2011, 2010 and 2009 and had no impairment charges. A portion of the Company's goodwill and other intangible assets reside in the Corporate segment of the business...

  • Page 68
    ... that it does not meet the control requirements to consolidate THE HUB, and accounts for the investment using the equity method of accounting. The Company's share in the loss (earnings) of THE HUB for the years ended December 25, 2011, December 26, 2010 and December 27, 2009 totaled $7,290, $9,323...

  • Page 69
    HASBRO, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements - (Continued) (Thousands of Dollars and Shares Except Per Share Data) Based on management's total revenue estimates at December 25, 2011, all of the unamortized television programming costs relating to released productions are ...

  • Page 70
    HASBRO, INC. AND SUBSIDIARIES Notes to Consolidated Financial Statements - (Continued) (Thousands of Dollars and Shares Except Per Share Data) (8) Accrued Liabilities Components of accrued liabilities are as follows: 2011 2010 Royalties ...Advertising ...Payroll and management incentives ...Non-...

  • Page 71
    ... United States ...State and local ...International ... (1,973) (68) (880) (2,921) Total incomes taxes ... $101,026 Certain income tax benefits, not reflected in income taxes in the consolidated statements of operations totaled $18,266 in 2011, $87,367 in 2010 and $2,905 in 2009. In 2011 and 2009...

  • Page 72
    ... Notes to Consolidated Financial Statements - (Continued) (Thousands of Dollars and Shares Except Per Share Data) A reconciliation of the statutory United States federal income tax rate to Hasbro's effective income tax rate is as follows: 2011 2010 2009 Statutory income tax rate ...State and local...

  • Page 73
    ... and liabilities at December 25, 2011 and December 26, 2010 are: 2011 2010 Deferred tax assets: Accounts receivable ...Inventories ...Loss carryforwards ...Operating expenses ...Pension ...Other compensation ...Postretirement benefits ...Tax sharing agreement ...Other ...Gross deferred tax assets...

  • Page 74
    ... statements of operations. At December 25, 2011, December 26, 2010 and December 27, 2009, the Company had accrued potential interest and penalties of $13,847, $14,466 and $17,938, respectively. The Company and its subsidiaries file income tax returns in the United States and various state...

  • Page 75
    ... Notes to Consolidated Financial Statements - (Continued) (Thousands of Dollars and Shares Except Per Share Data) During 2010, as a result of the completion of an examination related to the 2004 and 2005 U.S. federal income tax returns by the U.S. Internal Revenue Service, the Company recognized...

  • Page 76
    ...exchanges to measure the fair value of these securities. Certain other available-for-sale securities held by the Company are valued at the net asset value which is quoted on a private market that is not active; however, the unit price is predominantly based on underlying investments which are traded...

  • Page 77
    ... three and five years. During 2011, 2010 and 2009, the Company recognized compensation expense, net of forfeitures, on these awards of $1,761, $1,209 and $768, respectively. At December 26, 2011, the amount of total unrecognized compensation cost related to restricted stock units is $7,574 and...

  • Page 78
    ... the Company's achievement of stated cumulative diluted earnings per share and cumulative net revenue targets over the three fiscal years ended December 2013, December 2012, and December 2011 for the 2011, 2010 and 2009 awards, respectively. Each Stock Performance Award has a target number of shares...

  • Page 79
    ... 2009 Cost of sales ...Product development ...Selling, distribution and administration ...Income tax benefit ... $ 51 556 10,296 10,903 3,637 349 2,576 29,027 31,952 10,658 21,294 462 2,205 25,880 28,547 9,293 19,254 $ 7,266 Information with respect to stock options for the three years ended...

  • Page 80
    ... option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in the fiscal years 2011, 2010 and 2009: 2011 2010 2009 Risk-free interest rate ...Expected dividend yield ...Expected volatility ...Expected...

  • Page 81
    ... Financial Statements - (Continued) (Thousands of Dollars and Shares Except Per Share Data) United States Plans Prior to 2008, substantially all United States employees were covered under at least one of several non-contributory defined benefit pension plans maintained by the Company. Benefits...

  • Page 82
    ... of plan assets and the funded status are included below for the years ended December 25, 2011 and December 26, 2010. Pension 2011 2010 Postretirement 2011 2010 Change in Projected Benefit Obligation Projected benefit obligation - beginning ...$ 333,512 Service cost ...1,729 Interest cost ...16...

  • Page 83
    ... Assumptions used to determine the year end pension and postretirement benefit obligations are as follows: 2011 2010 Pension Weighted average discount rate ...Mortality table ...Postretirement Discount rate ...Health care cost trend rate assumed for next year ...Rate to which the cost trend rate is...

  • Page 84
    ... still held at December 25, 2011. Hasbro's two major funded plans (the "Plans") are defined benefit pension plans intended to provide retirement benefits to participants in accordance with the benefit structure established by Hasbro, Inc. The Plans' investment managers, who exercise full investment...

  • Page 85
    ... of the fiscal year-end. The following is a detail of the components of the net periodic benefit cost for the three years ended December 25, 2011. 2011 2010 2009 Components of Net Periodic Cost Pension Service cost ...Interest cost ...Expected return on assets ...Amortization of prior service cost...

  • Page 86
    ... all of the plan assets are invested in equity and fixed income securities. The pension expense related to these plans was $2,758, $2,333, and $4,903 in 2011, 2010 and 2009, respectively. In fiscal 2012, the Company expects amortization of $37 of prior service costs, $820 of unrecognized...

  • Page 87
    ... 12. In addition, the Company is also party to several interest rate swap agreements to adjust the amount of long-term debt subject to fixed interest rates. For additional information related to these interest rate swaps see note 9. Cash Flow Hedges Hasbro uses foreign currency forward contracts to...

  • Page 88
    ... of hedge ineffectiveness in 2011, 2010 and 2009, respectively. Other (income) expense for the year ended December 25, 2011 includes a loss of approximately $3,700 related to certain derivatives which no longer qualified for hedge accounting. Undesignated Hedges The Company also enters into foreign...

  • Page 89
    ...additional information related to the Company's derivative financial instruments see notes 2, 9 and 12. (17) Commitments and Contingencies Hasbro had unused open letters of credit and related instruments of approximately $174,082 and $179,592 at December 25, 2011 and December 26, 2010, respectively...

  • Page 90
    ..., preschool toys and infant products, electronic interactive products, toy-related specialty products, traditional board games and puzzles, DVD-based games and trading card and role-playing games within the United States and Canada. Within the International segment, the Company markets and sells...

  • Page 91
    ... Share Data) Information by segment and a reconciliation to reported amounts are as follows: Revenues from External Customers Affiliate Revenue Operating Profit (Loss) Depreciation and Amortization Capital Additions Total Assets 2011 U.S. and Canada ...International ...Entertainment and Licensing...

  • Page 92
    ... product lines accounted for 10% or more of consolidated net revenues in 2011, 2010 or 2009. Information as to Hasbro's operations in different geographical areas is presented below on the basis the Company uses to manage its business. Net revenues are categorized based on location of the customer...

  • Page 93
    ... Financial Statements - (Continued) (Thousands of Dollars and Shares Except Per Share Data) Other Information Hasbro markets its products primarily to customers in the retail sector. Although the Company closely monitors the creditworthiness of its customers, adjusting credit policies and...

  • Page 94
    ...30 2.88 2.82 48.70 31.36 1.20 $ $ First Second Quarter Third Fourth Full Year 2010 Net revenues ...Operating profit ...Earnings before income taxes ...Net earnings ...Per common share Net earnings Basic ...Diluted ...Market price High ...Low ...Cash dividends declared ... $672,371 69,327 54...

  • Page 95
    ...processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to...

  • Page 96
    ... the Public Company Accounting Oversight Board (United States), the consolidated balance sheets of Hasbro, Inc. and subsidiaries as of December 25, 2011 and December 26, 2010, and the related consolidated statements of operations, shareholders' equity, and cash flows for each of the fiscal years in...

  • Page 97
    ..., Corporate Governance. The Company's website address is http://www.hasbro.com. Although the Company does not generally intend to provide waivers of or amendments to the Code of Conduct for its Chief Executive Officer, Chief Financial Officer, Controller, or other officers or employees, information...

  • Page 98
    ... Information Regarding Independent Registered Public Accounting Firm" in the Company's definitive proxy statement for the 2012 Annual Meeting of Shareholders and is incorporated herein by reference. PART IV Item 15. Exhibits, Financial Statement Schedules. (a) Financial Statements, Financial...

  • Page 99
    ... the Company's Annual Report on Form 10-K for the Fiscal Year Ended December 31, 2006, File No. 1-6682.) (e) Certificate of Designations of Series C Junior Participating Preference Stock of Hasbro, Inc. dated June 29, 1999. (Incorporated by reference to Exhibit 3.2 to the Company's Quarterly Report...

  • Page 100
    ...-2 of the Securities Exchange Act of 1934, as amended.) (Incorporated by reference to Exhibit 10.2 to the Company's Quarterly Report on Form 10-Q for the period ended March 29, 2009, File No. 1-6682.) (g) Amendment, dated September 27, 2011, to License Agreements by and between Hasbro, Inc., Marvel...

  • Page 101
    ...Form of Employment Agreement between the Company and two Company executives (Brian Goldner and David D.R. Hargreaves). (Incorporated by reference to Exhibit 10(v) to the Company's Annual Report on Form 10-K for the Fiscal Year Ended December 31, 1989, File No. 1-6682.) Form of Amendment, dated as of...

  • Page 102
    ...2010 Annual Meeting of Shareholders, File No. 1-6682.) Form of Fair Market Value Stock Option Agreement under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan. (Incorporated by Reference to Exhibit 10.1 to the Company's Quarterly Report on Form 10-Q for the period ended March 27, 2011...

  • Page 103
    ... 10(ggg) to the Company's Annual Report on Form 10-K for the Fiscal Year Ended December 27, 2009, File No. 1-6682.) (zz) Form of Non-Competition and Non-Solicitation Agreement. (Signed by the following executive officers: David Hargreaves, Duncan Billing, John Frascotti, Deborah Thomas, Martin Trueb...

  • Page 104
    ...* Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934. Certification of the Chief Executive Officer Pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934. Certification of the Chief Financial Officer Pursuant to Rule 13a...

  • Page 105
    ... Accounting Firm The Board of Directors and Shareholders Hasbro, Inc.: Under date of February 22, 2012, we reported on the consolidated balance sheets of Hasbro, Inc. and subsidiaries as of December 25, 2011 and December 26, 2010, and the related consolidated statements of operations, shareholders...

  • Page 106
    ... Accounts Fiscal Years Ended in December (Thousands of Dollars) Balance at Beginning of Year Expense (Benefit) Other Additions Write-Offs and Other(a) Balance at End of Year Valuation accounts deducted from assets to which they apply - for doubtful accounts receivable: 2011 ...2010 ...2009...

  • Page 107
    ... undersigned, thereunto duly authorized. HASBRO, INC. (Registrant) By: /s/ Brian D. Goldner Brian D. Goldner President and Chief Executive Officer Date: February 22, 2012 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons...

  • Page 108
    Signature Title Date /s/ Tracy A. Leinbach Director February 22, 2012 Tracy A. Leinbach /s/ Edward M. Philip Director February 22, 2012 Edward M. Philip 99

  • Page 109
    .... Hasbro's deep commitment to corporate social responsibility (CSR) reï¬,ects our desire to play a part in building a safe and sustainable world for future generations. We embrace the responsibilities and opportunities that come with entertaining millions of children and families and employing...

  • Page 110
    1027 Newport Avenue Pawtucket, RI 02862-1059 www.hasbro.com For FSC logo to be inserted 002CSN0893 in this area by the printer FPO