Hasbro 2014 Annual Report Download - page 40

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The above properties consist, in general, of brick, cinder block or concrete block buildings which the
Company believes are in good condition and well maintained.
The Company believes that its facilities are adequate for its needs. The Company believes that, should it not
be able to renew any of the leases related to its leased facilities, it could secure similar substitute properties
without a material adverse impact on its operations.
Item 3.Legal Proceedings.
The Company had outstanding tax assessments in Mexico relating to the years 2000 through 2007 and for
2009 based on transfer pricing issues between the Company’s subsidiaries with respect to the Company’s
operations in Mexico. The Company filed suit in the Federal Tribunal of Fiscal and Administrative Justice in
Mexico challenging the 2000 through 2004 assessments and through administrative appeals for assessments for
2005 through 2007 and 2009. During the fourth quarter of 2014, the Company and the Mexican tax authorities
settled these disputes which resulted in an aggregate cash payment of approximately $65 million by the Company
to the Mexican tax authorities. This settlement agreement resolved all of the outstanding tax assessments and also
closed all other completed tax years through and including 2013.
Prior to this settlement, in order to challenge the outstanding tax assessments related to the years 2000
through 2004 in court, as is usual and customary in Mexico in these matters, the Company was required to either
make a deposit or post a bond in the full amount of these assessments. The Company elected to post bonds which
guaranteed the full amounts of the outstanding related tax assessments. Due to the timing of the settlement, these
bonds were still outstanding at December 28, 2014 and totaled $146 million in aggregate (at December 28, 2014
exchange rates).
We are currently party to certain other legal proceedings, none of which we believe to be material to our
business or financial condition.
Item 4. Mine Safety Disclosures.
None.
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