Hasbro 2011 Annual Report Download - page 66

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HASBRO, INC. AND SUBSIDIARIES
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 reclassification adjustments from
other comprehensive earnings of $(1,571), $8,767 and $(331) in 2011, 2010 and 2009, respectively, were
included in these amounts.
At December 25, 2011, the Company had remaining deferred gains on hedging instruments, net of tax, of
$10,081 in AOCE. These instruments hedge inventory purchased during the fourth quarter of 2011 or forecasted
to be purchased during 2012 and 2013 and intercompany expenses and royalty payments expected to be paid or
received during 2012 and 2013. These amounts will be reclassified into the consolidated statement of operations
upon the sale of the related inventory or receipt or payment of the related royalties or expenses. Of the amount
included in AOCE at December 25, 2011, the Company expects approximately $8,307 to be reclassified to the
consolidated statement of operations within the next 12 months. However, the amount ultimately realized in
earnings is dependent on the fair value of the hedging instruments on the settlement dates.
Components of AOCE at December 25, 2011 and December 26, 2010 are as follows:
2011 2010
Foreign currency translation adjustments ............................... $40,798 62,642
Gain on cash flow hedging activities, net of tax ......................... 10,081 15,432
Unrecognized pension and postretirement amounts, net of tax .............. (86,822) (69,925)
Total AOCE ..................................................... $(35,943) 8,149
(3) Property, Plant and Equipment
2011 2010
Land and improvements ........................................... $ 7,038 6,726
Buildings and improvements ........................................ 202,258 197,494
Machinery, equipment and software .................................. 405,912 398,896
615,208 603,116
Less accumulated depreciation ...................................... 453,676 430,193
161,532 172,923
Tools, dies and molds, net of accumulated depreciation .................. 56,489 60,657
Total property, plant and equipment, net .............................. $218,021 233,580
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.
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