Hasbro 2013 Annual Report Download - page 74

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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 29, 2013 is as follows:
2013 2012 2011
Basic Diluted Basic Diluted Basic Diluted
Net earnings attributable to Hasbro,
Inc. .......................... $286,198 286,198 335,999 335,999 385,367 385,367
Average shares outstanding ......... 130,186 130,186 130,067 130,067 133,823 133,823
Effect of dilutive securities:
Options and other share-based
awards ..................... — 1,602 — 1,859 — 2,874
Equivalent shares ................. 130,186 131,788 130,067 131,926 133,823 136,697
Net earnings attributable to Hasbro,
Inc. per share .................. $ 2.20 2.17 2.58 2.55 2.88 2.82
(2) Other Comprehensive Earnings (Loss)
Components of other comprehensive earnings (loss) are presented within the consolidated statements of
comprehensive earnings. The following table presents the related tax effects on changes in other comprehensive
earnings (loss) for the three years ended December 29, 2013.
2013 2012 2011
Other comprehensive earnings (loss), tax effect:
Tax benefit (expense) on cash flow hedging activities ............. $ (511) (384) 1,395
Tax benefit (expense) on unrecognized pension and postretirement
amounts ............................................... (25,193) 18,714 8,757
Reclassifications to earnings, tax effect:
Tax (benefit) expense on cash flow hedging activities ........... 946 1,378 402
Tax (benefit) expense on unrecognized pension and postretirement
amounts reclassified to the consolidated statements of
operations ............................................ (4,275) (2,498) (1,973)
Total tax effect on other comprehensive earnings ................. $(29,033) 17,210 8,581
In 2013, 2012 and 2011, net losses on cash flow hedging activities reclassified to earnings, net of tax,
included losses of $168, $90 and $100, respectively, as a result of hedge ineffectiveness.
At December 29, 2013, the Company had remaining net deferred losses on hedging instruments, net of tax,
of $7,313 in AOCE. These instruments hedge payments related to inventory purchased in the fourth quarter of
2013 or forecasted to be purchased during 2014 and 2015, intercompany expenses expected to be paid or
received during 2014 and 2015, cash receipts for sales made at the end of 2013 or forecasted to be made in 2014
and interest expenses expected to be paid on an expected issuance of long-term debt in 2014. These amounts will
be reclassified into the consolidated statements of operations upon the sale of the related inventory or recognition
of the related sales, royalties or expenses. Of the net deferred losses included in AOCE at December 29, 2013,
the Company expects approximately $6,500 to be reclassified to the consolidated statements 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.
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