Hasbro 2015 Annual Report Download - page 40

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Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations.
The following discussion should be read in conjunction with the audited consolidated financial statements of
the Company included in Part II Item 8 of this document.
This Management’s Discussion and Analysis of Financial Condition and Results of Operations contains
forward-looking statements concerning the Company’s expectations and beliefs. See Item 1A “Forward-Looking
Information and Risk Factors That May Affect Future Results” for a discussion of other uncertainties, risks and
assumptions associated with these statements.
Unless otherwise specifically indicated, all dollar or share amounts herein are expressed in millions of
dollars or shares, except for per share amounts.
EXECUTIVE SUMMARY
Hasbro, Inc. (“Hasbro” or the “Company”) is a global company dedicated to Creating the World’s Best Play
Experiences. The Company strives to do this through deep consumer engagement and the application of
consumer insights, the use of immersive storytelling to build brands, product innovation and development of
global business reach. Hasbro applies these principles to leverage its beloved owned and controlled brands,
including LITTLEST PET SHOP, MAGIC: THE GATHERING, MONOPOLY, MY LITTLE PONY, NERF,
PLAY-DOH and TRANSFORMERS, as well as the licensed brands of its strategic partners. From toys and
games, to television programming, motion pictures, digital gaming and a comprehensive consumer products
licensing program, Hasbro fulfills the fundamental need for play and connection for children and families around
the world. The Company’s wholly-owned Hasbro Studios creates entertainment brand-driven storytelling across
mediums, including television, film, digital and more.
Each of these principles is executed globally in alignment with Hasbro’s strategic plan, its brand blueprint.
At the center of this blueprint, Hasbro re-imagines, re-invents and re-ignites its owned and controlled brands and
imagines, invents and ignites new brands, through toy and game innovation, immersive entertainment offerings,
including television programming and motion pictures, and a broad range of consumer product licensing.
Utilizing consumer engagement and insights coupled with immersive storytelling and product innovation, Hasbro
generates revenue and earns cash by developing, marketing and selling global branded-entertainment products in
a broad variety of consumer goods categories, including toy and game products and distribution of television
programming based on the Company’s properties, as well as through the out-licensing of rights for third parties
to use its properties in connection with products, including digital media and games and lifestyle products.
Hasbro also leverages its competencies to develop and market products based on well-known licensed brands
owned by strategic partners, including, but not limited to, DISNEY’S DESCENDANTS, DISNEY PRINCESS
and FROZEN, JURASSIC WORLD, MARVEL, SESAME STREET and STAR WARS. In 2016, the Company
expects to develop and market products based on the following licensed entertainment brands, TROLLS and
YOKAI-WATCH. DISNEY’S DESCENDANTS, DISNEY PRINCESS, FROZEN, MARVEL and STAR WARS
are owned by The Walt Disney Company.
The Company’s business is separated into three principal business segments: U.S. and Canada, International
and Entertainment and Licensing. The U.S. and Canada segment markets and sells both toy and game products
primarily in the United States and Canada. The International segment consists of the Company’s European, Asia
Pacific and Latin and South American toy and game marketing and sales operations. The Company’s
Entertainment and Licensing segment includes the Company’s consumer products licensing, digital licensing and
gaming, and movie and television entertainment operations. In addition to these three primary segments, the
Company’s product sourcing operations are managed through its Global Operations segment.
2015 highlights
• Net revenues grew 4% to $4,447.5 million in 2015 from $4,277.2 million in 2014. Absent unfavorable
foreign currency translation of approximately $394.5 million, 2015 net revenues grew 13% compared to
2014.
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