Hasbro 2014 Annual Report Download - page 46

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Hasbro sells its products both within the United States and throughout international markets. In recent years,
the Company’s International segment net revenues have experienced growth as the Company has sought to
increase its global presence. Net revenues of the Company’s International segment represented 47%, 46% and
44% of total net revenues in 2014, 2013 and 2012, respectively. The Company has driven international growth by
opportunistically opening offices in certain markets, primarily emerging markets, to develop this greater global
presence. The Company believes emerging markets offer greater opportunity for revenue growth than in
developed economies which have faced challenging economic environments in recent years. In 2014, 2013 and
2012, net revenues from emerging markets increased by 20%, 25% and 16%, respectively.
The Company’s business is separated into three principal business segments, U.S. and Canada, International
and Entertainment and Licensing. The U.S. and Canada segment develops, markets and sells both toy and game
products in the United States and Canada. The International segment consists of the Company’s European, Asia
Pacific and Latin and South American toy and game marketing and sales operations. The Company’s
Entertainment and Licensing segment includes the Company’s lifestyle licensing, digital licensing and gaming,
movie and television entertainment operations. In addition to these three primary segments, the Company’s
world-wide manufacturing and product sourcing operations are managed through its Global Operations segment.
The Company is committed to returning excess cash to its shareholders through share repurchases and
dividends. As part of this initiative, from 2005 through 2013, the Company’s Board of Directors (the “Board”)
adopted seven successive share repurchase authorizations with a cumulative authorized repurchase amount of
$3,325,000. At December 28, 2014, the Company had $64,151 remaining available under theses authorizations.
During the three years ended 2014, the Company spent a total of $663,385, to repurchase 13,453 shares in the
open market. The Company intends to, at its discretion, opportunistically repurchase shares in the future subject
to market conditions, the Company’s other potential uses of cash and the Company’s levels of cash generation.
Subsequent to year-end, in February 2015, the Company’s Board of Directors approved an eighth share
repurchase authorization for $500,000. In addition to the share repurchase program, the Company also seeks to
return excess cash through the payment of quarterly dividends. In February 2015 the Company’s Board
announced a 7% increase in the Company’s quarterly dividend rate to $0.46 per share from the prior year
quarterly dividend of $0.43 per share. This was the eleventh dividend increase in the previous 12 years. During
that period, the Company has increased its quarterly cash dividend from $0.03 to $0.46 per share.
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