Hasbro 2011 Annual Report Download - page 93

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HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated 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 limits as deemed appropriate, a
substantial portion of its customers’ ability to discharge amounts owed is generally dependent upon the overall
retail economic environment.
Sales to the Company’s three largest customers, Wal-Mart Stores, Inc., Toys “R” Us, Inc. and Target
Corporation, amounted to 20%, 11% and 10%, respectively, of consolidated revenues during 2011, 23%, 11%
and 12%, respectively, of consolidated net revenues during 2010 and 25%, 11% and 13%, respectively during
2009. These net revenues were primarily within the U.S. and Canada segment.
Hasbro purchases certain components used in its manufacturing process and certain finished products from
manufacturers in the Far East. The Company’s reliance on external sources of manufacturing can be shifted, over
a period of time, to alternative sources of supply for products it sells, should such changes be necessary.
However, if the Company were prevented from obtaining products from a substantial number of its current Far
East suppliers due to political, labor or other factors beyond its control, the Company’s operations would be
disrupted, potentially for a significant period of time, while alternative sources of product were secured. The
imposition of trade sanctions, quotas or other protectionist measures by the United States or the European Union
against a class of products imported by Hasbro from, or the loss of “normal trade relations” status with, China
could significantly increase the cost of the Company’s products imported into the United States or Europe.
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