Hasbro 2012 Annual Report Download - page 49

agreement. At December 30, 2012, the Company had notes outstanding with par value of approximately
$209,200 related to the Program. In January 2013, the program was amended to increase the aggregate
outstanding principal amount to $700,000.
The Company has a revolving credit agreement (the “Agreement”) as amended in October 2012 which
provides the Company with a $700,000 committed borrowing facility through October of 2017. Previously, the
Agreement provided the Company with a $500,000 committed borrowing facility through December of 2014.
The Agreement contains certain financial covenants setting forth leverage and coverage requirements, and certain
other limitations typical of an investment grade facility, including with respect to liens, mergers and incurrence
of indebtedness. The Company was in compliance with all covenants in the Agreement as of and for the fiscal
year ended December 30, 2012. The Company had no borrowings outstanding under its committed revolving
credit facility at December 30, 2012. However, letters of credit outstanding under this facility as of December 30,
2012 were approximately $1,100 and borrowings under the Company’s commercial paper program were
approximately $209,200. Amounts available and unused under the committed line, less outstanding balances
under the commercial paper program, at December 30, 2012 were approximately $489,700. The Company also
has other uncommitted lines from various banks, of which approximately $33,300 was utilized at December 30,
2012. Of the amount utilized under, or supported by, the uncommitted lines, approximately $15,100 and $18,200
represent outstanding short-term borrowings and letters of credit, respectively.
Net cash utilized by financing activities was $219,379 in 2012. Of this amount, $98,005 reflects cash paid,
including transaction costs, to repurchase the Company’s common stock. During 2012, the Company repurchased
2,694 shares at an average price of $37.11. At December 30, 2012, $127,282 remained under the May 2011
Board authorization. Dividends paid were $225,464 in 2012 compared to $154,028 in 2011 reflecting not only
the increase in the Company’s dividend rate in 2012 to $0.36 per quarter from $0.30 per quarter but also an
additional dividend payment due to the decision by the Company’s Board to accelerate the payment of the
dividend declared in December 2012, which historically would have been paid in February 2013, to December
2012. These utilizations were partially offset by net proceeds of $43,106 from short-term borrowings in 2012 as
well as cash received from exercises of employee stock options of $54,963.
Net cash utilized by financing activities was $375,685 in 2011. Of this amount, $423,008 reflected cash
paid, including transaction costs, to repurchase the Company’s common stock. During 2011, the Company
repurchased 10,461 shares at an average price of $40.42. Dividends paid were $154,028 in 2011 compared to
$133,048 in 2010 reflecting the increase in the Company’s dividend rate in 2011 to $0.30 per quarter from $0.25
per quarter. These utilizations were partially offset by net proceeds of $167,339 from short-term borrowings in
2011. In addition, cash received from the exercise of employee stock options in 2011 was $29,798.
Net cash utilized by financing activities was $170,595 in 2010. Of this amount, $639,563 reflected cash
paid, including transaction costs, to repurchase the Company’s common stock. During 2010, the Company
repurchased 15,763 shares at an average price of $40.37. Dividends paid were $133,048 in 2010. These
utilizations were partially offset by proceeds of $492,528 from the issuance of long-term notes in March 2010. In
addition, cash received from the exercise of employee stock options in 2010 was $93,522.
For the $425,000 in notes due in 2014 and the $350,000 in notes due in 2017 which bear interest at 6.125%
and 6.30%, respectively, interest rates may be adjusted upward in the event that the Company’s credit rating from
Moody’s Investor Services, Inc., Standard & Poor’s Ratings Services or Fitch Ratings is reduced to Ba1, BB+, or
BB+, respectively, or below. At December 30, 2012, the Company’s ratings from Moody’s Investor Services,
Inc., Standard & Poor’s Ratings Services and Fitch Ratings were Baa2, BBB+ and BBB+, respectively. The
interest rate adjustment is dependent on the degree of decrease of the Company’s ratings and could range from
0.25% to a maximum of 2.00%. The Company may redeem the notes at its option at the greater of the principal
amount of the notes or the present value of the remaining scheduled payments discounted using the effective
interest rate on applicable U.S. Treasury bills at the time of repurchase.
Including the notes described above, the Company has remaining principal amounts of long-term debt at
December 30, 2012 of approximately $1,384,895 due at varying times from 2014 through 2040. The Company
also had letters of credit and other similar instruments of $194,221 and purchase commitments of $262,101
39