Hasbro 2011 Annual Report Download - page 65

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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 2010 2009
Basic Diluted Basic Diluted Basic Diluted
Net earnings ..................... $385,367 385,367 397,752 397,752 374,930 374,930
Interest expense on contingent
convertible debentures due 2021,
netoftax ................... — — — 1,124 — 4,328
Adjusted net earnings ............. $385,367 385,367 397,752 398,876 374,930 379,258
Average shares outstanding ......... 133,823 133,823 139,079 139,079 139,487 139,487
Effect of dilutive securities:
Contingent convertible debentures
due 2021 ................... — — — 3,024 — 11,566
Options and other share-based
awards ..................... — 2,874 — 3,567 — 1,727
Equivalent shares ................. 133,823 136,697 139,079 145,670 139,487 152,780
Net earnings per share ............. $ 2.88 2.82 2.86 2.74 2.69 2.48
The net earnings per share calculations for each of the two fiscal years ended December 26, 2010 include
adjustments to add back to earnings the interest expense, net of tax, incurred on the Company’s senior
convertible debentures due 2021, as well as to add back to outstanding shares the amount of shares potentially
issuable under the contingent conversion feature of these debentures. During the first and second quarter of 2010,
substantially all of these debentures were converted into shares of common stock with the remainder redeemed
for cash. See note 9 for further information.
(2) Other Comprehensive Loss
The Company’s other comprehensive loss for the years 2011, 2010 and 2009 consist of the following:
2011 2010 2009
Foreign currency translation adjustments .......................... $(21,844) (32,457) 23,782
Changes in value of available-for-sale securities, net of tax ........... — — 504
Gain (loss) on cash flow hedging activities, net of tax ................ (8,689) 10,444 (24,446)
Changes in unrecognized pension and postretirement amounts, net of
tax ...................................................... (20,237) (1,812) 8,356
Reclassifications to earnings, net of tax:
Net (gains) losses on cash flow hedging activities ................. 3,338 (15,422) (18,657)
Loss on available-for-sale securities ........................... — — 147
Amortization of unrecognized pension and postretirement amounts . . . 3,340 (11,235) 6,689
Other comprehensive loss ...................................... $(44,092) (50,482) (3,625)
In 2011, 2010 and 2009, net losses on cash flow hedging activities reclassified to earnings, net of tax,
included losses of $100, $109 and $679, respectively, as a result of hedge ineffectiveness.
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