Hasbro 2015 Annual Report Download - page 85

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HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)
The Company and the Network are also parties to an agreement under which the Company will provide the
Network with an exclusive first look in the U.S. to license certain types of programming developed by the
Company based on its intellectual property. In the event the Network licenses the programming from the
Company to air, it is required to pay the Company a license fee.
As of December 27, 2015 and December 28, 2014 the Company’s investment in the Network totaled
$242,932 and $244,587, respectively. The Company’s share in the (earnings) loss of the Network for the years
ended December 27, 2015, December 28, 2014 and December 29, 2013 totaled $(19,045), $9,187 and $2,386,
respectively and is included as a component of other (income) expense, net in the accompanying consolidated
statements of operations. In 2014, the Company’s share in the loss of the Network included charges related to its
restructuring totaling $17,278. The Company also enters into certain other transactions with the Network
including the licensing of television programming and the purchase of advertising. During 2015, 2014 and 2013,
these transactions were not material.
(6) Program Production Costs
Program production costs are included in other assets and consist of the following at December 27, 2015
and December 28, 2014:
2015 2014
Television programming
Released, less amortization ......................................... $33,730 41,742
In production .................................................... 36,092 24,607
Pre-production ................................................... 84 1,841
Theatrical programming
In production .................................................... 5,640 —
Total program production costs ....................................... $75,546 68,190
Based on management’s total revenue estimates at December 27, 2015, 92% of the unamortized television
programming costs relating to released productions are expected to be amortized during the next three years.
Based on current estimates, the Company expects to amortize approximately $22,500 of the $33,730 of released
programs during fiscal 2016.
(7) Financing Arrangements
At December 27, 2015, Hasbro had available an unsecured committed line and unsecured uncommitted lines
of credit from various banks approximating $700,000 and $131,000, respectively. All of the short-term
borrowings outstanding at the end of 2015 and 2014 represent borrowings made under, or supported by, these
lines of credit. Borrowings under the lines of credit were made by certain international affiliates of the Company
on terms and at interest rates generally extended to companies of comparable creditworthiness in those markets.
The weighted average interest rates of the outstanding borrowings under the uncommitted lines of credit as of
December 27, 2015 and December 28, 2014 were 3.97% and 3.80%, respectively. The Company had no
borrowings outstanding under its committed line of credit at December 27, 2015. During 2015, Hasbro’s working
capital needs were fulfilled by cash generated from operations, borrowings under lines of credit and utilization of
its commercial paper program discussed below.
The unsecured committed line of credit, as amended on March 30, 2015 (the “Agreement”), provides the
Company with a $700,000 committed borrowing facility through March 30, 2020. The Agreement contains
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