Hasbro 2008 Annual Report Download - page 63

Corporate segment amounts. Changes in carrying amount of goodwill, by operating segment for the years
ended December 28, 2008 and December 30, 2007 are as follows:
U.S. and Canada International Total
2008
Balance at December 30, 2007 ..................... $293,891 177,286 471,177
Goodwill acquired .............................. 6,605 2,217 8,822
Foreign exchange translation ...................... — (5,502) (5,502)
Balance at December 28, 2008 ..................... $300,496 174,001 474,497
2007
Balance at December 31, 2006 ..................... $293,891 176,047 469,938
Foreign exchange translation ...................... — 1,239 1,239
Balance at December 30, 2007 ..................... $293,891 177,286 471,177
In January 2008 the Company acquired Cranium, Inc. (“Cranium”), a developer and marketer of
children’s and adult board games, in order to supplement its existing game portfolio for a total cost of
approximately $68,000. Based on the allocation of the purchase price, property rights related to acquired
product lines of approximately $68,500 were recorded as intangible assets in the acquisition. These property
rights are being amortized over a fifteen year estimated useful life. Goodwill of $8,822 was also recorded as a
result of the transaction. The consolidated statement of operations of the Company for 2008 includes the
operations of Cranium from the closing date of January 25, 2008.
A summary of the Company’s other intangibles, net at December 28, 2008 and December 30, 2007 is as
follows:
2008 2007
Acquired product rights ....................................... $1,080,628 925,092
Licensed rights of entertainment properties ........................ 211,555 211,555
Accumulated amortization ..................................... (799,509) (726,153)
Amortizable intangible assets .................................. 492,674 410,494
Product rights with indefinite lives............................... 75,738 75,738
$ 568,412 486,232
In the second quarter of fiscal 2008, the Company purchased all of the intellectual property rights related
to the TRIVIAL PURSUIT brand from Horn Abbot Ltd. and Horn Abbot International Limited (together the
“Seller”) for a total cost of approximately $80,800. Previous to this asset purchase, the Company licensed
these rights from the Seller. The cost was recorded as property rights and included in other intangibles. These
property rights are being amortized over a fifteen year estimated useful life.
In July 2007, with the exception of rights to DUNGEONS & DRAGONS, the Company reacquired the
remaining digital gaming rights for its owned or controlled properties held by Infogrames Entertainment SA
(Infogrames). The acquisition price of $19,000 included $18,000 in cash and $1,000 of non-cash consideration
in the form of the return of preferred stock held by the Company in a subsidiary of Infogrames. These rights
were previously held by Infogrames on an exclusive basis as a result of a license agreement. The consideration
to reacquire these rights, which represents fair value, is included as a component of other intangible assets in
the consolidated balance sheets and is being amortized over a period of approximately 5 years.
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HASBRO, INC. AND SUBSIDIARIES
Notes to Consolidated Financial Statements — (Continued)
(Thousands of Dollars and Shares Except Per Share Data)