Hasbro 2012 Annual Report Download - page 91

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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 has a master agreement with each of its counterparties that allows for the netting of
outstanding forward contracts. The fair values of the Company’s foreign currency forward contracts designated
as cash flow hedges are recorded in the consolidated balance sheet at December 30, 2012 and December 25, 2011
as follows:
2012 2011
Prepaid expenses and other current assets
Unrealized gains ................................................... $2,802 11,965
Unrealized losses .................................................. (1,073) (4,187)
Net unrealized gain ................................................. 1,729 7,778
Other assets
Unrealized gains ................................................... 12 2,113
Unrealized losses .................................................. — (92)
Net unrealized gain ................................................. 12 2,021
Total asset derivatives ............................................... $1,741 9,799
Accrued liabilities
Unrealized gains ................................................... $1,466 12
Unrealized losses .................................................. (4,245) (50)
Net unrealized loss ................................................. (2,779) (38)
Other liabilities
Unrealized gains ................................................... 20 —
Unrealized losses .................................................. (375) (21)
Net unrealized loss ................................................. (355) (21)
Total liability derivatives ............................................ $(3,134) (59)
During the years ended December 30, 2012, December 25, 2011 and December 26, 2010, the Company
reclassified net (losses) gains from AOCE to net earnings of $8,762, $(2,936) and $17,780, respectively. Of the
amount reclassified in 2012, 2011 and 2010, $9,644, $(6,158) and $13,249 were reclassified to cost of sales and
$1,845, $2,895 and $4,663 were reclassified to royalty expense, respectively. In addition, $(2,633) and $436 was
reclassified to net revenues in 2012 and 2011. Net losses of $(94), $(109) and $(132) were reclassified to
earnings as a result of hedge ineffectiveness in 2012, 2011 and 2010, 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 currency forward contracts to minimize the impact of changes in the
fair value of intercompany loans due to foreign currency changes. The Company does not use hedge accounting
for these contracts as changes in the fair values of these contracts are substantially offset by changes in the fair
value of the intercompany loans. As of December 30, 2012 and December 25, 2011, the total notional amount of
the Company’s undesignated derivative instruments was $189,217 and $218,122, respectively.
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