Hasbro 2011 Annual Report Download - page 67

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HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)
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 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. 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 25, 2011 and December 26, 2010 are as follows:
U.S. and
Canada International
Entertainment
and Licensing Total
2011
Balance at December 26, 2010 ............ $296,978 171,339 6,496 474,813
Foreign exchange translation .............. — (21) — (21)
Balance at December 25, 2011 ............ $296,978 171,318 6,496 474,792
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
A summary of the Company’s other intangibles, net at December 25, 2011 and December 26, 2010 is as
follows:
2011 2010
Acquired product rights .......................................... $757,531 755,214
Licensed rights of entertainment properties ........................... 256,555 256,555
Accumulated amortization ........................................ (622,531) (586,910)
Amortizable intangible assets ...................................... 391,555 424,859
Product rights with indefinite lives .................................. 75,738 75,738
Total other intangibles, net ........................................ $467,293 500,597
The Company will continue to incur amortization expense related to the use of acquired and licensed rights
to produce various products. The amortization of these product rights will fluctuate depending on related
revenues during an annual period, as well as rights reaching the end of their useful lives. The Company currently
estimates amortization expense related to the above intangible assets for the next five years to be approximately:
2012 ..................................................................... $48,000
2013 ..................................................................... 50,000
2014 ..................................................................... 54,000
2015 ..................................................................... 52,000
2016 ..................................................................... 36,000
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