Hasbro 2013 Annual Report Download - page 79

HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)
credit were made by certain international affiliates of the Company on terms and at interest rates generally
extended to companies of comparable creditworthiness in those markets. The weighted average interest rates of
the outstanding borrowings under the uncommitted lines of credit as of December 29, 2013 and December 30,
2012 were 5.25% and 5.79%, respectively. The Company had no borrowings outstanding under its committed
line of credit or commercial paper program at December 29, 2013. During 2013, Hasbro’s working capital needs
were fulfilled by cash generated from operations, borrowings under lines of credit and utilization of its
commercial paper program discussed below.
The unsecured committed line of credit, as amended on October 2012 (the “Agreement”), provides the
Company with a $700,000 committed borrowing facility through October 1, 2017. The Agreement contains
certain financial covenants setting forth leverage and coverage requirements, and certain other limitations typical
of an investment grade facility, including with respect to liens, mergers and incurrence of indebtedness. The
Company was in compliance with all covenants as of and for the year ended December 29, 2013.
The Company pays a commitment fee (0.15% as of December 29, 2013) based on the unused portion of the
facility and interest equal to a Base Rate or Eurocurrency Rate plus a spread on borrowings under the facility.
The Base Rate is determined based on either the Federal Funds Rate plus a spread, Prime Rate or Eurocurrency
Rate plus a spread. The commitment fee and the amount of the spread to the Base Rate or Eurocurrency Rate
both vary based on the Company’s long-term debt ratings and the Company’s leverage. At December 29, 2013,
the interest rate under the facility was equal to Eurocurrency Rate plus 1.25%.
In January 2011, the Company entered into an agreement with a group of banks to establish a commercial
paper program (the “Program”). Under the Program, at the Company’s request the banks may either purchase
from the Company, or arrange for the sale by the Company of, unsecured commercial paper notes. Under the
Program, the Company may issue notes from time to time up to an aggregate principal amount outstanding at any
given time of $700,000. The maturities of the notes may vary but may not exceed 397 days. Subject to market
conditions, the notes will be sold under customary terms in the commercial paper market and will be issued at a
discount to par, or alternatively, will be sold at par and will bear varying interest rates based on a fixed or
floating rate basis. The interest rates will vary based on market conditions and the ratings assigned to the notes by
the credit rating agencies at the time of issuance. At December 30, 2012, the Company had notes outstanding
under the Program of $209,190 with a weighted average interest rate of 1.46%. There were no notes outstanding
under the Program at December 29, 2013.
(8) Accrued Liabilities
Components of accrued liabilities are as follows:
2013 2012
Royalties ....................................................... $168,950 133,009
Advertising ..................................................... 84,815 85,401
Payroll and management incentives .................................. 73,970 70,954
Other .......................................................... 400,024 306,800
Total accrued liabilities ............................................ $727,759 596,164
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