Hasbro 2008 Annual Report Download - page 62

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Components of accumulated other comprehensive earnings at December 28, 2008 and December 30, 2007
are as follows:
2008 2007
Foreign currency translation adjustments ............................ $71,317 104,872
Changes in value of available-for-sale securities, net of tax ............... (651) 1,489
Gain (loss) on cash flow hedging activities, net of tax................... 63,513 (11,080)
Unrecognized pension and postretirement amounts, net of tax ............. (71,923) (20,343)
$ 62,256 74,938
(3) Property, Plant and Equipment
2008 2007
Land and improvements ........................................ $ 6,578 6,940
Buildings and improvements ..................................... 195,520 192,928
Machinery and equipment ....................................... 358,529 344,967
560,627 544,835
Less accumulated depreciation.................................... 403,082 401,272
157,545 143,563
Tools, dies and molds, net of depreciation ........................... 54,162 44,397
$211,707 187,960
Expenditures for maintenance and repairs which do not materially extend the life of the assets are charged
to operations.
(4) Goodwill and Intangibles
Goodwill and certain intangible assets relating to rights obtained in the Company’s acquisition of Milton
Bradley in 1984 and Tonka in 1991 are not amortized. These rights were determined to have indefinite lives
and total approximately $75,700. The Company’s other intangible assets are amortized over their remaining
useful lives, and accumulated amortization of these other intangibles is reflected in other intangibles, net in the
accompanying consolidated balance sheets.
The Company performs an annual impairment test on goodwill and intangible assets with indefinite lives.
This annual impairment test is performed in the fourth quarter of the Company’s fiscal year. In addition, if an
event occurs or circumstances change that indicate that the carrying value may not be recoverable, the
Company will perform an interim impairment test at that time. For the three fiscal years ended December 28,
2008, no such events occurred. The Company completed its annual impairment tests in the fourth quarters of
2008, 2007 and 2006 and had no impairment charges.
A portion of the Company’s goodwill and other intangible assets reside in the Corporate segment of the
business. For purposes of testing pursuant to Statement of Financial Accounting Standards No. 142, “Goodwill
and Other Intangible Assets”, these assets are allocated to the reporting units within the Company’s operating
segments. In 2008 the Company reorganized the reporting structure of its operating segments (see note 16).
The Company has adjusted its prior year information to reflect the current reporting structure and reallocated
52
HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)