Hasbro 2009 Annual Report Download - page 11

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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 products and services with a broad
portfolio of brands and entertainment properties. As a brand-driven, consumer-focused global company, Hasbro
brings to market a wide range of toys, games and licensed products, from traditional to high-tech and digital,
under well-known brand names such as TRANSFORMERS, PLAYSKOOL, NERF, LITTLEST PET SHOP,
MY LITTLE PONY, G.I. JOE, TONKA, MILTON BRADLEY, PARKER BROTHERS, CRANIUM and
WIZARDS OF THE COAST. 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. We also seek to expand awareness of our brands through
immersive entertainment experiences, including television and movies. In 2009 we purchased a 50% interest in
a joint venture with Discovery Communications, Inc. (“Discovery”). This joint venture operates a television
network in the United States dedicated to high-quality children’s and family entertainment and educational
programming.
Product Categories
We market our brands under the following primary product categories: (1) boys’ toys; (2) games and
puzzles; (3) girls’ toys; and (4) preschool toys. Descriptions of these product categories are as follows:
Our boys’ toys category includes a wide range of core brand offerings such as TRANSFORMERS and
G.I. JOE action figures and accessories, NERF sports and action products, as well as entertainment-based
licensed products based on popular movie, television and comic book characters, such as STAR WARS and
MARVEL toys and accessories. In the action figure area, a key part of our strategy focuses on the importance
of reinforcing the storyline associated with these products through the use of media-based entertainment. In
2009, sales in our boys’ toys category also benefited from major motion picture releases of TRANSFORMERS:
REVENGE OF THE FALLEN and G.I. JOE: THE RISE OF COBRA. In addition, STAR WARS, SPIDER-
MAN and TRANSFORMERS products were each supported by animated television series. In 2010, the major
motion picture IRON MAN 2 is expected to be released based on the MARVEL character. In addition to
marketing and developing action figures and accessories for traditional play, the Company also develops and
markets products designed for collectors, which has been a key component of the success of the STAR WARS
brand. Other key boys’ brands include TONKA and SUPERSOAKER.
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
LADDERS, CANDY LAND, TROUBLE, MOUSETRAP, OPERATION, HUNGRY HUNGRY HIPPOS,
CONNECT FOUR, TWISTER, YAHTZEE, CRANIUM, JENGA, SIMON, CLUE, SORRY!, RISK, BOGGLE,
TRIVIAL PURSUIT, GUESS WHO? and BOP IT!, as well as a line of puzzles for children and adults,
including the BIG BEN and CROXLEY lines of puzzles. WIZARDS OF THE COAST offers trading card and
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