Hasbro 2015 Annual Report Download - page 42

Download and view the complete annual report

Please find page 42 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

Results of Operations — Consolidated
The fiscal years ended December 27, 2015, December 28, 2014 and December 29, 2013 were each fifty-two
week periods.
Net earnings, including the impact of noncontrolling interests in Backflip, for fiscal years 2015, 2014 and
2013 were $446.9 million, $413.3 million and $283.9 million, respectively.
In July 2013 the Company acquired a 70% majority interest in Backflip Studios, LLC (“Backflip”). The
Company is consolidating the financial results of Backflip in its consolidated financial statements and,
accordingly, reported revenues, costs and expenses, assets and liabilities, and cash flows include 100% of
Backflip, with the 30% noncontrolling interests share reported as net loss attributable to noncontrolling interests
in the consolidated statements of operations and redeemable noncontrolling interests on the consolidated balance
sheets. The results of operations for the years ended December 27, 2015 and December 28, 2014 include a full
year of Backflip operations whereas the results of operations for the year ended December 29, 2013 included the
operations of Backflip from the acquisition closing date of July 8, 2013. The results of Backflip are reported in
the Entertainment and Licensing segment.
Net earnings and earnings per share attributable to Hasbro, Inc. were $451.8 million, or $3.57 per diluted
share, in 2015, $415.9 million, or $3.20 per diluted share, in 2014 and $286.2 million, or $2.17 per diluted share,
in 2013.
Net earnings and diluted earnings per share for each fiscal year in the three years ended December 27, 2015
include certain charges and benefits as described below.
2015
• Benefit, net of tax, of $6.9 million, or $0.05 per diluted share, related to a gain on the sale of the
Company’s manufacturing operations in East Longmeadow, MA and Waterford, Ireland.
2014
• Benefit, net of tax, of $23.9 million, or $0.18 per diluted share, related to a gain on the sale of intellectual
property license rights.
• Net benefit of $6.6 million, or $0.05 per diluted share, related to the settlement of certain tax
examinations.
• Charge, net of tax, of $18.1 million, or $0.14 per diluted share, related to the restructuring of the
Company’s equity investment in its joint television network with Discovery.
• Charge, net of tax, of $5.2 million, or $0.04 per diluted share, related to other restructuring activities.
2013
• Benefit of $23.6 million, or $0.18 per diluted share, related to the settlement of certain tax examinations
in the United States.
• Charge, net of tax, of $53.1 million, or $0.40 per diluted share, related to the settlement of an arbitration
award following a dispute with an inventor related to the contractual interpretation of a license agreement
between the Company and the inventor.
• Charge, net of tax, of $30.9 million, or $0.23 per diluted share, related to the multi-year cost savings
initiative announced during the fourth quarter of 2012.
• Charge, net of tax, of $25.9 million, or $0.20 per diluted share, related to the exit of certain non-strategic
brands.
31