Hasbro 2015 Annual Report Download - page 105

Download and view the complete annual report

Please find page 105 of the 2015 Hasbro annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 126

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126

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 27, 2015 and December 28, 2014
as follows:
2015 2014
Prepaid expenses and other current assets
Unrealized gains ................................................... $78,910 46,594
Unrealized losses .................................................. (5,932) (11,508)
Net unrealized gain ................................................ $72,978 35,086
Other assets
Unrealized gains ................................................... $35,366 34,234
Unrealized losses .................................................. (710) (172)
Net unrealized gain ................................................ $34,656 34,062
Accrued liabilities
Unrealized gains ................................................... $ — 447
Unrealized losses .................................................. — (725)
Net unrealized loss ................................................. $ — (278)
Other liabilities
Unrealized gains ................................................... $ 241 —
Unrealized losses .................................................. (437) —
Net unrealized loss ................................................. $ (196) —
Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings
to net earnings for the years ended December 27, 2015, December 28, 2014 and December 29, 2013 as follows:
2015 2014 2013
Consolidated Statements of Operations Classification
Cost of sales ............................................... $66,378 973 1,523
Sales ..................................................... (9,219) (3,741) 3,585
Royalties and other ......................................... (566) (2,028) (1,096)
Net realized (losses) gains .................................... $56,593 (4,796) 4,012
In addition, net gains of $1,169, $62 and $164 were reclassified to earnings as a result of hedge
ineffectiveness in 2015, 2014 and 2013, respectively.
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 27, 2015 and December 28, 2014, the total notional amount of
the Company’s undesignated derivative instruments was $341,389 and $294,571, respectively.
94