Hasbro 2014 Annual Report Download - page 103

HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)
Expected benefit payments under the defined benefit pension plans and the postretirement benefit plan for
the next five years subsequent to 2014 and in the aggregate for the following five years are as follows:
Pension Postretirement
2015 ....................................................... $ 19,838 2,041
2016 ....................................................... 19,899 1,650
2017 ....................................................... 20,632 1,603
2018 ....................................................... 21,361 1,555
2019 ....................................................... 21,822 1,490
2020-2024 .................................................. 116,138 6,923
International Plans
Pension coverage for employees of Hasbro’s international subsidiaries is provided, to the extent deemed
appropriate, through separate defined benefit and defined contribution plans. At December 28, 2014 and
December 29, 2013, the defined benefit plans had total projected benefit obligations of $147,528 and $112,460,
respectively, and fair values of plan assets of $102,375 and $85,335, respectively. Substantially all of the plan
assets are invested in equity and fixed income securities. The pension expense related to these plans was $3,363,
$4,085 and $3,458 in 2014, 2013 and 2012, respectively. In fiscal 2015, the Company expects amortization of
$(43) of prior service costs, $1,515 of unrecognized net losses and $3 of unrecognized transition obligation to be
included as a component of net periodic benefit cost.
Expected benefit payments under the international defined benefit pension plans for the five years
subsequent to 2014 and in the aggregate for the five years thereafter are as follows: 2015: $1,834; 2016: $1,881;
2017: $2,062; 2018: $2,285; 2019: $2,440; and 2020 through 2024: $16,135.
Postemployment Benefits
Hasbro has several plans covering certain groups of employees, which may provide benefits to such
employees following their period of active employment but prior to their retirement. These plans include certain
severance plans which provide benefits to employees involuntarily terminated and certain plans which continue
the Company’s health and life insurance contributions for employees who have left Hasbro’s employ under terms
of its long-term disability plan.
(15) Leases
Hasbro occupies offices and uses certain equipment under various operating lease arrangements. The rent
expense under such arrangements, net of sublease income which is not material, for 2014, 2013 and 2012
amounted to $47,026, $44,511 and $46,636, respectively.
Minimum rentals, net of minimum sublease income, which is not material, under long-term operating leases
for the five years subsequent to 2014 and in the aggregate thereafter are as follows: 2015: $35,405; 2016:
$27,621; 2017: $20,569; 2018: $17,586; 2019: $15,785; and thereafter: $23,456.
All leases expire prior to the end of 2024. Real estate taxes, insurance and maintenance expenses are
generally obligations of the Company. It is expected that, in the normal course of business, leases that expire will
be renewed or replaced by leases on other properties; thus, it is anticipated that future minimum lease
commitments will not be less than the amounts shown for 2015.
(16) Derivative Financial Instruments
Hasbro uses foreign currency forward contracts to mitigate the impact of currency rate fluctuations on
firmly committed and projected future foreign currency transactions. These over-the-counter contracts, which
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