Hasbro 2015 Annual Report Download - page 91

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HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)
The cumulative amount of undistributed earnings of Hasbro’s international subsidiaries held for indefinite
reinvestment is approximately $2,219,000 at December 27, 2015. In the event that all international undistributed
earnings were remitted to the United States, the amount of incremental taxes would be approximately $548,000.
(11) Capital Stock
In February 2015 the Company’s Board of Directors authorized the repurchases of up to $500,000 in
common stock after seven previous authorizations dated May 2005, July 2006, August 2007, February
2008, April 2010, May 2011 and August 2013 with a cumulative authorized repurchase amount of $3,325,000
were fully utilized. Purchases of the Company’s common stock may be made from time to time, subject to
market conditions, and may be made in the open market or through privately negotiated transactions. The
Company has no obligation to repurchase shares under the authorization and the time, actual number, and the
value of the shares which are repurchased will depend on a number of factors, including the price of the
Company’s common stock. In 2015, the Company repurchased 1,248 shares at an average price of $68.01. The
total cost of these repurchases, including transaction costs, was $84,894. At December 27, 2015, $479,283
remained under the current authorizations.
(12) Fair Value of Financial Instruments
The Company measures certain assets at fair value in accordance with current accounting standards. The fair
value hierarchy consists of three levels: Level 1 fair values are valuations based on quoted market prices in active
markets for identical assets or liabilities that the entity has the ability to access; Level 2 fair values are those
valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or
other inputs that are observable or can be corroborated by observable data for substantially the full term of the
assets or liabilities; and Level 3 fair values are valuations based on inputs that are supported by little or no market
activity and that are significant to the fair value of the assets or liabilities. There have been no transfers between
levels within the fair value hierarchy.
Current accounting standards permit entities to choose to measure many financial instruments and certain
other items at fair value and establish presentation and disclosure requirements designed to facilitate comparisons
between entities that choose different measurement attributes for similar assets and liabilities. The Company has
elected the fair value option for certain investments. At December 27, 2015 and December 28, 2014, these
investments totaled $22,539 and $23,560, respectively, and are included in prepaid expenses and other current
assets in the consolidated balance sheets. The Company recorded net (losses) gains of $(682), $889 and $152 on
these investments in other (income) expense, net for the years ended December 27, 2015, December 28, 2014 and
December 29, 2013, respectively, relating to the change in fair value of such investments.
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