Hasbro 2008 Annual Report Download - page 11

PART I
Item 1. Business
General Development and Description of Business and Business Segments
Except as expressly indicated or unless the context otherwise requires, as used herein, “Hasbro”, the
“Company”, “we”, or “us”, means Hasbro, Inc., a Rhode Island corporation organized on January 8, 1926, and
its subsidiaries. Unless otherwise specifically indicated, all dollar or share amounts herein are expressed in
thousands of dollars or shares, except for per share amounts.
Overview
We are a worldwide leader in children’s and family leisure time and entertainment products and services,
including the design, manufacture and marketing of games and toys. Internationally and in the United States,
our widely recognized core brands such as PLAYSKOOL, TRANSFORMERS, MY LITTLE PONY, LIT-
TLEST PET SHOP, TONKA, G.I. JOE, SUPER SOAKER, MILTON BRADLEY, PARKER BROTHERS,
TIGER and WIZARDS OF THE COAST provide what we believe are the highest quality play experiences in
the world. Our offerings encompass a broad variety of games, including traditional board, card, hand-held
electronic, trading card, role-playing and DVD games, as well as electronic learning aids and puzzles. Toy
offerings include boys’ action figures, vehicles and playsets, girls’ toys, electronic toys, plush products,
preschool toys and infant products, electronic interactive products, creative play and toy related specialty
products. In addition, we license certain of our trademarks, characters and other property rights to third parties
for use in connection with digital gaming, consumer promotions, and for the sale of non-competing toys and
games and non-toy products.
Organizationally, our principal segments are U.S. and Canada and International. Both of these segments
engage in the marketing and selling of various toy and game products as listed above. Our toy, game and
puzzle products are developed by a global development group. We also have a global marketing function
which establishes brand direction and assists the segments in establishing certain local marketing programs.
The costs of these groups are allocated to the principal segments. Our U.S. and Canada segment covers the
United States and Canada while the International segment primarily includes Europe, the Asia Pacific region
and Latin and South America (including Mexico). Financial information with respect to our segments and
geographic areas is included in note 16 to our financial statements, which are included in Item 8 of this
Form 10-K.
In addition, our Global Operations segment is responsible for arranging product manufacturing and
sourcing for the U.S. and Canada and International segments and our Other segment out-licenses our
intellectual property to third parties on a worldwide basis, including licensing of the Company’s intellectual
property for use in digital games.
U.S. and Canada
The U.S. and Canada segment’s strategy is based on growing its core brands through innovation and
reinvention, introducing new initiatives driven by consumer and marketplace insights and leveraging opportu-
nistic toy and game lines and licenses. This strategy includes increasing visibility of the Company’s core
brands through entertainment, such as motion pictures, television and publishing. Major 2008 brands and
products included STAR WARS, TRANSFORMERS, LITTLEST PET SHOP, NERF, PLAYSKOOL, MARVEL
products, MONOPOLY, FURREAL FRIENDS, MAGIC: THE GATHERING, and BABY ALIVE. In the
U.S. and Canada segment, our products were organized into the following categories in 2008: (i) games and
puzzles; (ii) boys’ toys; (iii) girls’ toys; (iv) preschool toys; (v) tween toys; and (vi) other.
Our games and puzzles category includes several well known brands, including MILTON BRADLEY,
PARKER BROTHERS, TRIVIAL PURSUIT, CRANIUM, AVALON HILL and WIZARDS OF THE COAST.
These brand portfolios consist of a broad assortment of games for children, tweens, families and adults. Core
game brands include MONOPOLY, BATTLESHIP, GAME OF LIFE, SCRABBLE, CHUTES AND
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