~~PART I. FINANCIAL INFORMATION~~

PART I. FINANCIAL INFORMATION

~~Item 1.~~

Item 1. Financial Statements.

HASBRO, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(Thousands of Dollars Except Share Data)

(Unaudited) June 28, 2015 June 29, 2014 December 28, 2014
ASSETS

Current assets
Cash and cash equivalents $ 858,458 586,151 893,167
Accounts receivable, less allowance for doubtful accounts of $16,300 $20,700 and $15,900 709,437 738,899 1,094,673
Inventories 403,789 492,822 339,572
Prepaid expenses and other current assets 434,145 386,333 391,688
Total current assets 2,405,829 2,204,205 2,719,100

Property, plant and equipment, less accumulated depreciation of $359,300, $512,200 and $508,600 225,911 236,881 237,489

Other assets
Goodwill 592,802 594,320 593,438
Other intangibles, net, accumulated amortization of $823,800, $770,100 and $797,500 298,231 350,705 324,528
Other 708,334 752,484 657,587
Total other assets 1,599,367 1,697,509 1,575,553

Total assets $ 4,231,107 4,138,595 4,532,142

~~HASBRO, INC.~~

March 27,

March 29,

December 27,

2016

2015

ASSETS

Current assets

Cash and cash equivalents

1,095,880

1,081,397

976,750

Accounts receivable, less allowance for doubtful accounts of $31,100,

$16,400 and $14,900

670,663

563,301

1,217,850

Inventories

461,734

340,654

384,492

Prepaid expenses and other current assets

295,806

346,726

286,506

Total current assets

2,524,083

2,332,078

2,865,598

Property, plant and equipment, less accumulated depreciation of $365,600,

$510,700 and $363,600

241,253

243,589

237,527

Other assets

Goodwill

592,793

592,724

592,695

Other intangibles, net, accumulated amortization of $850,000, $810,500

and $841,300

272,116

311,576

280,807

Other

734,450

767,149

744,090

Total other assets

1,599,359

1,671,449

1,617,592

Total assets

4,364,695

4,247,116

4,720,717

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS

AND ~~SUBSIDIARIES~~

~~Consolidated Balance Sheets (continued)~~

~~(Thousands~~SHAREHOLDERS' EQUITY

Current liabilities

Short-term borrowings

89,000

231,914

164,563

Accounts payable

176,665

142,946

241,210

Accrued liabilities

502,708

442,209

658,874

Total current liabilities

768,373

817,069

1,064,647

Long-term debt

1,547,434

1,546,169

1,547,115

Other liabilities

402,346

396,137

404,883

Total liabilities

2,718,153

2,759,375

3,016,645

Redeemable noncontrolling interests

39,152

42,234

40,170

Shareholders' equity

Preference stock of ~~Dollars Except Share Data)~~

~~(Unaudited)~~

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY
June 28, 2015 June 29, 2014 December 28, 2014
Current liabilities
Short-term borrowings $ 167,877 9,188 252,481
Accounts payable 185,631 207,526 212,549
Accrued liabilities 452,395 507,978 609,904
Total current liabilities 805,903 724,692 1,074,934

Long-term debt 1,559,895 1,559,895 1,559,895
Other liabilities 395,417 357,766 388,919
Total liabilities 2,761,215 2,642,353 3,023,748

Redeemable noncontrolling interests 41,387 44,194 42,730

Shareholders' equity
Preference stock of $2.50 par value. Authorized 5,000,000 shares; none issued - - -
Common stock of $.50 par value. Authorized 600,000,000 shares; issued 209,694,630 104,847 104,847 104,847
Additional paid-in capital 850,582 767,595 806,265
Retained earnings 3,583,803 3,387,006 3,630,072
Accumulated other comprehensive loss (103,476 ) (51,784 ) (95,454 )
Treasury stock, at cost; 84,781,723 shares at June 28, 2015; 81,767,695 shares at June 29, 2014; and 85,168,478 shares at December 28, 2014 (3,007,251 ) (2,755,616 ) (2,980,066 )
Total shareholders' equity 1,428,505 1,452,048 1,465,664

Total liabilities, redeemable noncontrolling interests and shareholders' equity $ 4,231,107 4,138,595 4,532,142

$2.50 par value. Authorized 5,000,000 shares; none

issued

Common stock of $.50 par value. Authorized 600,000,000 shares; issued

209,694,630 at March 27, 2016, March 29, 2015, and December 27, 2015

104,847

Additional paid-in capital

906,211

825,489

893,630

Retained earnings

3,837,372

3,599,571

3,852,321

Accumulated other comprehensive loss

(164,353)

(86,996)

(146,001)

Treasury stock, at cost; 84,829,514 shares at March 27, 2016; 85,120,544

shares at March 29, 2015; and 84,899,200 shares at December 27, 2015

(3,076,687)

(2,997,404)

(3,040,895)

Total shareholders' equity

1,607,390

1,445,507

1,663,902

Total liabilities, redeemable noncontrolling interests and

shareholders' equity

4,364,695

4,247,116

4,720,717

See accompanying condensed notes to consolidated financial statements.

The following table presents consolidated net revenues by class of principal products for the quarters ended March 27, 2016 and March 29, 2015.

	Quarter Ended
	March 27,		March 29,
	2016		2015
Boys	$	336,855		272,598
Games		231,142		235,649
Girls		165,353		117,127
Preschool		97,830		88,126
Net revenues	$	831,180		713,500

~~HASBRO, INC. AND SUBSIDIARIES~~

~~Consolidated Statements of Operations~~

~~(Thousands of Dollars Except Per Share Data)~~

~~(Unaudited)~~

Quarter Ended Six Months Ended
June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014
Net revenues $ 797,658 829,262 1,511,158 1,508,715
Costs and expenses:
Cost of sales 295,399 320,336 543,134 578,881
Royalties 57,069 70,533 116,158 120,114
Product development 57,609 51,707 109,506 98,964
Advertising 78,365 81,693 146,107 148,952
Amortization of intangibles 13,348 11,892 26,299 25,294
Program production cost amortization 7,220 6,710 18,316 11,368
Selling, distribution and administration 213,148 203,827 421,933 399,130
Total costs and expenses 722,158 746,698 1,381,453 1,382,703
Operating profit 75,500 82,564 129,705 126,012
Non-operating (income) expense:
Interest expense 24,186 22,802 48,771 45,230
Interest income (690 ) (1,165 ) (1,620 ) (2,491 )
Other income, net (1,642 ) (3,590 ) (5,407 ) (7,239 )
Total non-operating expense, net 21,854 18,047 41,744 35,500
Earnings before income taxes 53,646 64,517 87,961 90,512
Income tax expense 13,364 31,697 21,858 26,178
Net earnings 40,282 32,820 66,103 64,334
Net loss attributable to noncontrolling interests (1,527 ) (655 ) (2,373 ) (1,228 )
Net earnings attributable to Hasbro, Inc. $ 41,809 33,475 68,476 65,562

Net earnings attributable to Hasbro, Inc. per common share:
Basic $ 0.33 0.26 0.55 0.50
Diluted $ 0.33 0.26 0.54 0.50
Cash dividends declared per common share $ 0.46 0.43 0.92 0.86

~~See accompanying condensed notes to consolidated financial statements.~~

~~HASBRO, INC. AND SUBSIDIARIES~~

~~Consolidated Statements of Comprehensive Earnings~~

~~(Thousands of Dollars)~~

~~(Unaudited)~~

Quarter Ended Six Months Ended
June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014
Net earnings $ 40,282 32,820 66,103 64,334
Other comprehensive earnings (loss):
Foreign currency translation adjustments 642 6,336 (46,669 ) 4,042
Net (losses) gains on cash flow hedging activities, net of tax (9,672 ) (11,689 ) 52,628 (27,840 )
Unrealized holding gains on available-for-sale securities, net of tax 715 1,282 941 3,525
Reclassifications to earnings, net of tax:
Net (gains) losses on cash flow hedging activities (9,458 ) 286 (17,419 ) 1,524
Unrecognized pension and postretirement amounts 1,293 566 2,497 1,100
Total other comprehensive loss, net of tax (16,480 ) (3,219 ) (8,022 ) (17,649 )
Comprehensive earnings 23,802 29,601 58,081 46,685
Comprehensive loss attributable to noncontrolling interests (1,527 ) (655 ) (2,373 ) (1,228 )
Comprehensive earnings attributable to Hasbro, Inc. $ 25,329 30,256 60,454 47,913

~~See accompanying condensed notes to consolidated financial statements.~~

~~HASBRO, INC. AND SUBSIDIARIES~~

~~Consolidated Statements of Cash Flows~~

~~(Thousands of Dollars)~~

~~(Unaudited)~~

Six Months Ended
June 28, 2015 June 29, 2014
Cash flows from operating activities:
Net earnings $ 66,103 64,334
Adjustments to reconcile net earnings to net cash provided by operating activities:
Depreciation of plant and equipment 50,749 50,078
Amortization of intangibles 26,299 25,294
Program production cost amortization 18,316 11,368
Deferred income taxes (5,234 ) (2,613 )
Stock-based compensation 21,714 17,850
Change in operating assets and liabilities:
Decrease in accounts receivable 333,467 342,413
Increase in inventories (100,563 ) (143,102 )
Decrease (increase) in prepaid expenses and other current assets 435 (1,019 )
Program production costs (21,557 ) (15,818 )
Decrease in accounts payable and accrued liabilities (162,483 ) (217,617 )
Other 8,858 (21,898 )
Net cash provided by operating activities 236,104 109,270
Cash flows from investing activities:
Additions to property, plant and equipment (67,709 ) (51,636 )
Investments and acquisitions, net of cash acquired (3,000 ) -
Other 11,706 (1,028 )
Net cash utilized by investing activities (59,003 ) (52,664 )
Cash flows from financing activities:
Net proceeds from borrowings with maturity greater than three months - 559,986
Repayments of borrowings with maturity greater than three months - (425,000 )
Net (repayments of) proceeds from other short-term borrowings (84,420 ) 1,430
Purchases of common stock (49,156 ) (213,935 )
Stock option transactions 34,297 26,776
Excess tax benefits from stock-based compensation 7,947 4,693
Dividends paid (110,902 ) (108,097 )
Other (81 ) -
Net cash utilized by financing activities (202,315 ) (154,147 )
Effect of exchange rate changes on cash (9,495 ) 1,243
Decrease in cash and cash equivalents (34,709 ) (96,298 )
Cash and cash equivalents at beginning of year 893,167 682,449
Cash and cash equivalents at end of period $ 858,458 586,151

Supplemental information
Cash paid during the period for:
Interest $ 43,977 51,023
Income taxes $ 36,727 41,905

~~See accompanying condensed notes to consolidated financial statements.~~

~~HASBRO, INC. AND SUBSIDIARIES~~

~~Condensed Notes to Consolidated Financial Statements~~

~~(Thousands of Dollars and Shares Except Per Share Data)~~

~~(Unaudited)~~

~~(1)~~ ~~Basis of Presentation~~

In the opinion of management, the accompanying unaudited interim financial statements contain all normal and recurring adjustments necessary to present fairly the financial position of Hasbro, Inc. and all majority-owned subsidiaries ("Hasbro" or the "Company") as of June 28, 2015 and June 29, 2014, and the results of its operations and cash flows for the periods then ended in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Actual results could differ from those estimates.

~~The quarters ended June 28, 2015 and June 29, 2014 are each 13-week periods. The six-month periods ended June 28, 2015 and June 29, 2014 are each 26-week periods.~~

The results of operations for the quarter and six-month periods ended June 28, 2015 are not necessarily indicative of results to be expected for the full year, nor were those of the comparable 2014 periods representative of those actually experienced for the full year 2014.

These condensed consolidated financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The Company filed audited consolidated financial statements for the fiscal year ended December 28, 2014 in its Annual Report on Form 10-K, which includes all such information and disclosures and, accordingly, should be read in conjunction with the financial information included herein.

The Company's accounting policies are the same as those described in Note 1 to the Company's consolidated financial statements in its Annual Report on Form 10-K for the fiscal year ended December 28, 2014.

~~(2)~~ ~~Earnings Per Share~~

~~Net earnings per share data for the quarter and six-month periods ended June 28, 2015 and June 29, 2014 were computed as follows:~~

2015 2014
Quarter
Basic Diluted Basic Diluted
Net earnings attributable to Hasbro, Inc. $ 41,809 41,809 33,475 33,475

Average shares outstanding 125,093 125,093 129,381 129,381
Effect of dilutive securities:
Options and other share-based awards - 1,713 - 1,549
Equivalent Shares 125,093 126,806 129,381 130,930

Net earnings attributable to Hasbro, Inc. per common share $ 0.33 0.33 0.26 0.26

2015 2014
Six Months
Basic Diluted Basic Diluted
Net earnings attributable to Hasbro, Inc. $ 68,476 68,476 65,562 65,562

Average shares outstanding 124,973 124,973 130,306 130,306
Effect of dilutive securities:
Options and other share-based awards - 1,601 - 1,525
Equivalent Shares 124,973 126,574 130,306 131,831

Net earnings attributable to Hasbro, Inc. per common share $ 0.55 0.54 0.50 0.50

For the quarter ended June 28, 2015, no options or restricted stock units were excluded from the calculation of diluted earnings per share as none were antidilutive. For the quarter ended June 29, 2014, options and restricted stock units totaling 674, were excluded from the calculation of diluted earnings per share because to include them would have been antidilutive. For the six-month periods ended June 28, 2015 and June 29, 2014, options and restricted stock units totaling 391 and 675, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been antidilutive.

~~(3)~~ ~~Other Comprehensive Earnings (Loss)~~

Components of other comprehensive earnings (loss) are presented within the consolidated statements of comprehensive earnings. The following table presents the related tax effects on changes in other comprehensive earnings (loss) for the quarter and six-month periods ended June 28, 2015 and June 29, 2014.

Quarter Ended Six Months Ended
June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014

Other comprehensive earnings (loss), tax effect:
Tax benefit (expense) on cash flow hedging activities $ 853 5,437 (3,962 ) 14,911
Tax expense on unrealized holding gains (408 ) (727 ) (536 ) (1,999 )
Reclassifications to earnings, tax effect:
Tax expense (benefit) on cash flow hedging activities 708 (119 ) 1,050 (342 )
Tax benefit on unrecognized pension and postretirement amounts reclassified to the consolidated statements of operations (596 ) (321 ) (1,280 ) (624 )

Total tax effect on other comprehensive earnings (loss) $ 557 4,270 (4,728 ) 11,946

~~Changes in the components of accumulated other comprehensive loss for the six months ended June 28, 2015 and June 29, 2014 are as follows:~~

Pension and Postretirement Amounts Gains (Losses) on Derivative Instruments Unrealized Holding Gains on Available-for-Sale Securities Foreign Currency Translation Adjustments Total Accumulated Other Comprehensive Loss
2015

Balance at Dec. 28, 2014 $ (113,092 ) 43,689 1,900 (27,951 ) (95,454 )
Current period other comprehensive earnings (loss) 2,497 35,209 941 (46,669 ) (8,022 )
Balance at June 28, 2015 $ (110,595 ) 78,898 2,841 (74,620 ) (103,476 )

2014

Balance at Dec. 29, 2013 $ (64,841 ) (7,313 ) - 38,019 (34,135 )
Current period other comprehensive earnings (loss) 1,100 (26,316 ) 3,525 4,042 (17,649 )
Balance at June 29, 2014 $ (63,741 ) (33,629 ) 3,525 42,061 (51,784 )

At June 28, 2015, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $98,835 in accumulated other comprehensive loss ("AOCE"). These instruments hedge payments related to inventory purchased in the second quarter of 2015 or forecasted to be purchased during the remainder of 2015 and, to a lesser extent, 2016 through 2020, intercompany expenses expected to be paid or received during 2015 and 2016, cash receipts for sales made at the end of the second quarter of 2015 or forecasted to be made in the remainder of 2015 and, to a lesser extent, 2016 through 2017. These amounts will be reclassified into the consolidated statements of operations upon the sale of the related inventory or recognition of the related sales or expenses.

In addition to foreign currency forward contracts, the Company entered into hedging contracts on future interest payments related to the long-term notes due 2021 and 2044. At the date of debt issuance, these contracts were terminated and the fair value on the date of settlement was deferred in AOCE and is being amortized to interest expense over the life of the related notes using the effective interest rate method. At June 28, 2015, deferred losses, net of tax of $19,937 related to these instruments remained in AOCE. For the quarter and six months ended June 28, 2015, losses of $449 and $889, respectively, were reclassified from AOCE to net earnings. For both the quarter and six months ended June 29, 2014, losses of $257 were reclassified from AOCE to net earnings.

Of the amount included in AOCE at June 28, 2015, the Company expects approximately $46,129 to be reclassified to the consolidated statements of operations within the next 12 months. However, the amount ultimately realized in earnings is dependent on the fair value of the hedging instruments on the settlement dates.

~~(4)~~ ~~Financial Instruments~~

The Company's financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain accrued liabilities. At June 28, 2015, June 29, 2014 and December 28, 2014, the carrying cost of these instruments approximated their fair value. The Company's financial instruments at June 28, 2015, June 29, 2014 and December 28, 2014 also include certain assets and liabilities measured at fair value (see Notes 6 and 8) as well as long-term borrowings. The carrying costs which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings as of June 28, 2015, June 29, 2014 and December 28, 2014 are as follows:

June 28, 2015 June 29, 2014 December 28, 2014

Carrying
Cost

Fair
Value

Carrying
Cost

Fair
Value

Carrying
Cost

Fair
Value

6.35% Notes Due 2040 $ 500,000 557,450 500,000 587,350 500,000 617,700
6.30% Notes Due 2017 350,000 382,235 350,000 396,725 350,000 387,660
5.10% Notes Due 2044 300,000 287,010 300,000 307,950 300,000 316,980
3.15% Notes Due 2021 300,000 301,800 300,000 300,330 300,000 302,700
6.60% Debentures Due 2028 109,895 121,115 109,895 124,687 109,895 128,698
Total long-term debt $ 1,559,895 1,649,610 1,559,895 1,717,042 1,559,895 1,753,738

In May 2014, the Company issued $600,000 in long-term debt which consists of $300,000 of 3.15% Notes Due in 2021 and $300,000 of 5.10% Notes Due in 2044 (collectively, the "Notes"). 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.

The fair values of the Company's long-term debt are considered Level 3 fair values (see Note 6 for further discussion of the fair value hierarchy) and are measured using the discounted future cash flows method. In addition to the debt terms, the valuation methodology includes an assumption of a discount rate that approximates the current yield on a similar debt security. This assumption is considered an unobservable input in that it reflects the Company's own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that this is the best information available for use in the fair value measurement.

~~(5)~~ ~~Income Taxes~~

The Company and its subsidiaries file income tax returns in the United States and various state and international jurisdictions. In the normal course of business, the Company is regularly audited by U.S. federal, state and local and international tax authorities in various tax jurisdictions.

The Company is no longer subject to U.S. federal income tax examinations for years before 2013. With few exceptions, the Company is no longer subject to U.S., state or local and non-U.S. income tax examinations by tax authorities in its major jurisdictions for years before 2009. The Company is currently under income tax examination in several U.S., state and local and non-U.S. jurisdictions.

~~(6)~~ ~~Fair Value of Financial Instruments~~

The Company measures certain financial instruments at fair value. The fair value hierarchy consists of three levels: Level 1 fair values are based on quoted market prices in active markets for identical assets or liabilities that the entity has the ability to access; Level 2 fair values are those based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities; and Level 3 fair values are based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.

Accounting standards permit entities to measure many financial instruments and certain other items at fair value and establish presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar assets and liabilities. The Company has elected the fair value option for certain available-for-sale investments. At June 28, 2015, June 29, 2014 and December 28, 2014, these investments totaled $32,766, $33,528 and $23,560, respectively, and are included in prepaid expenses and other current assets in the consolidated balance sheets. The Company recorded net losses of $87 and $70 on these investments in other (income) expense, net for the quarter and six-months ended June 28, 2015, respectively, related to the change in fair value of such instruments. For the quarter and six-month periods ended June 29, 2014 the Company recorded net gains of $1,063 and $2,240, respectively, in other (income) expense, net, related to the change in fair value of such instruments.

~~At June 28, 2015, June 29, 2014 and December 28, 2014, the Company had the following assets and liabilities measured at fair value in its consolidated balance sheets:~~

Fair Value Measurements Using:

Fair
Value

Quoted
Prices in
Active
Markets
for
Identical
Assets
(Level 1)

Significant
Other
Observable
Inputs
(Level 2)

Significant
Unobservable
Inputs
(Level 3)

June 28, 2015

Assets:
Available-for-sale securities $ 38,725 5,959 21,777 10,989
Derivatives 105,906 - 105,906 -
Total assets $ 144,631 5,959 127,683 10,989

Liabilities:
Derivatives $ 2,748 - 2,748 -
Option agreement 25,190 - - 25,190
Total liabilities $ 27,938 - 2,748 25,190

June 29, 2014

Assets:
Available-for-sale securities $ 40,712 7,183 27,912 5,617
Derivatives 533 - 533 -
Total assets $ 41,245 7,183 28,445 5,617

Liabilities:
Derivatives $ 16,131 - 16,131 -

December 28, 2014

Assets:
Available-for-sale securities $ 28,042 4,482 17,773 5,787
Derivatives 69,148 - 69,148 -
Total assets $ 97,190 4,482 86,921 5,787

Liabilities:
Derivatives $ 2,591 - 2,591 -
Option agreement 25,340 - - 25,340
Total Liabilities $ 27,931 - 2,591 25,340

Available-for-sale securities include equity securities of one company quoted on an active public market as well as certain investments valued at net asset values quoted on private markets that are not active. These net asset values are predominantly based on underlying investments which are traded on an active market; investments are redeemable within 45 days. ~~The Company also holds an available-for-sale investment in Brazil similar to a repurchase agreement; this investment is valued at the principal plus any interest accrued on the instrument.~~ Lastly, the Company holds an available-for-sale investment which invests in hedge funds and contains financial instruments that are valued using certain estimates which are considered unobservable in that they reflect the investment manager's own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that these estimates are the best information available for use in the fair value of this investment.

~~The Company's derivatives consist primarily of foreign currency forward contracts.~~ ~~The Company used current forward rates of the respective foreign currencies to measure the fair value of these contracts.~~ ~~The option agreement included in other liabilities at June 28, 2015, June 29, 2014 and December 28, 2014, is valued using an option pricing model based on the fair value of the related investment.~~ Inputs used in the option pricing model include the volatility and fair value of the underlying company which are considered unobservable inputs as they reflect the Company's own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that this is the best information available for use in the fair value measurement. There were no changes in these valuation techniques during the first half of 2015.

~~The following is a reconciliation of the beginning and ending balances of the fair value measurements of the Company's financial instruments which use significant unobservable inputs (Level 3):~~

2015 2014
Balance at beginning of year $ (19,553 ) 5,484
Purchases 5,000 -
Gain from change in fair value 352 133
Balance at end of second quarter $ (14,201 ) 5,617

~~(7)~~ ~~Pension and Postretirement Benefits~~

The components of the net periodic cost of the Company's defined benefit pension and other postretirement plans for the quarter and six-month periods ended June 28, 2015 and June 29, 2014 are as follows:

Quarter Ended
Pension Postretirement
June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014
Service cost $ 1,021 969 150 138
Interest cost 4,619 5,053 285 333
Expected return on assets (5,497 ) (5,558 ) - -
Net amortization and deferrals 2,207 1,251 (114 ) (114 )
Curtailment 138 - - -
Net periodic benefit cost $ 2,488 1,715 321 357

Six Months Ended
Pension Postretirement
June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014
Service cost $ 2,032 1,940 300 275
Interest cost 9,224 10,111 570 665
Expected return on assets (10,976 ) (11,118 ) - -
Net amortization and deferrals 4,408 2,503 (228 ) (227 )
Curtailment 138 - - -
Net periodic benefit cost $ 4,826 3,436 642 713

During the first half of fiscal 2015, the Company made cash contributions to its defined benefit pension plans of approximately $430 in the aggregate. The Company expects to contribute approximately $3,570 during the remainder of fiscal 2015.

~~(8)~~ ~~Derivative Financial Instruments~~

Hasbro uses foreign currency forward contracts to mitigate the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions. These over-the-counter contracts, which hedge future currency requirements related to purchases of inventory, product sales and other cross-border transactions not denominated in the functional currency of the business unit, are primarily denominated in United States and Hong Kong dollars, and Euros. All contracts are entered into with a number of counterparties, all of which are major financial institutions. The Company believes that a default by a single counterparty would not have a material adverse effect on the financial condition of the Company. Hasbro does not enter into derivative financial instruments for speculative purposes.

~~Cash Flow Hedges~~

The Company uses foreign currency forward contracts to reduce the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions. All of the Company's designated foreign currency forward contracts are considered to be cash flow hedges. These instruments hedge a portion of the Company's currency requirements associated with anticipated inventory purchases, product sales and other cross-border transactions in 2015 through 2020.

At June 28, 2015, June 29, 2014 and December 28, 2014, the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows:

June 28, 2015 June 29, 2014 December 28, 2014

Hedged transaction
Notional Amount
Fair
Value

Notional
Amount

Fair
Value

Notional
Amount

Fair
Value

Inventory purchases $ 1,081,451 111,252 747,516 (8,500 ) 863,232 69,049
Sales 239,415 (7,659 ) 189,357 (4,613 ) 139,946 829
Other 74,433 (971 ) 43,042 (1,949 ) 51,213 (1,008 )
Total $ 1,395,299 102,622 979,915 (15,062 ) 1,054,391 68,870

The Company has a master agreement with each of its counterparties that allows for the netting of outstanding forward contracts. The fair values of the Company's foreign currency forward contracts designated as cash flow hedges are recorded in the consolidated balance sheets at June 28, 2015, June 29, 2014 and December 28, 2014 as follows:

June 28, 2015 June 29, 2014 December 28, 2014
Prepaid expenses and other current assets

Unrealized gains $ 63,740 422 46,594
Unrealized losses (12,302 ) (248 ) (11,508 )
Net unrealized gain $ 51,438 174 35,086

Other assets

Unrealized gains $ 54,664 315 34,234
Unrealized losses (732 ) (22 ) (172 )
Net unrealized gains $ 53,932 293 34,062

Accrued liabilities

Unrealized gains $ 4,349 2,563 447
Unrealized losses (7,026 ) (16,475 ) (725 )
Net unrealized loss $ (2,677 ) (13,912 ) (278 )

Other liabilities

Unrealized gains $ - 1,118 -
Unrealized losses (71 ) (2,735 ) -
Net unrealized loss $ (71 ) (1,617 ) -

Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the quarter and six-month periods ended June 28, 2015 and June 29, 2014 as follows:

Quarter Ended Six Months Ended
June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014
Statements of Operations Classification
Cost of sales $ 12,683 821 22,746 (198 )
Sales (2,645 ) (704 ) (3,999 ) (863 )
Other 12 (260 ) 55 (610 )
Net realized gains (losses) $ 10,050 (143 ) 18,802 (1,671 )

In addition, gains of $567 were reclassified to earnings as a result of hedge ineffectiveness for the quarter and six-month periods ended June 28, 2015, and net (losses) gains of $(3) and $62 were reclassified to earnings as a result of hedge ineffectiveness for the quarter and six-month periods ended June 29, 2014, respectively.

~~Undesignated Hedges~~

The Company also enters into foreign currency forward contracts to minimize the impact of changes in the fair value of intercompany loans due to foreign currency fluctuations. Due to the nature of the derivative contracts involved, the Company does not use hedge accounting for these contracts. At June 28, 2015, June 29, 2014 and December 28, 2014 the total notional amounts of the Company's undesignated derivative instruments were $124,171, $248,908 and $294,571, respectively.

~~At June 28, 2015, June 29, 2014 and December 28, 2014, the fair values of the Company's undesignated derivative financial instruments were recorded in the consolidated balance sheets as follows:~~

June 28, 2015 June 29, 2014 December 28, 2014
Prepaid expenses and other current assets

Unrealized gains $ 563 - -
Unrealized losses (27 ) - -
Net unrealized gain 536 - -

Other assets

Unrealized gains - 66 -
Unrealized losses - - -
Net unrealized gain - 66 -

Accrued liabilities

Unrealized gains - 663 1,733
Unrealized losses - (1,265 ) (4,046 )
Net unrealized loss - (602 ) (2,313 )

Total unrealized gain (loss), net $ 536 (536 ) (2,313 )

The Company recorded net gains of $8,883 and $18,954 on these instruments to other (income) expense, net for the quarter and six-month periods ended June 28, 2015, respectively, and $4,179 and $62 on these instruments to other (income) expense, net for the quarter and six-month periods ended June 29, 2014, respectively, relating to the change in fair value of such derivatives, substantially offsetting gains and losses from the change in fair value of intercompany loans to which the contracts relate.

~~For additional information related to the Company's derivative financial instruments see Notes 4 and 6.~~

~~(9)~~ ~~Assets Held for Sale~~

On July 14, 2015, the Company announced its intent to sell its manufacturing operations in East Longmeadow, Massachusetts and Waterford, Ireland to the Cartamundi Group. The Company anticipates that this transaction, which is subject to the signing of definitive agreements and the satisfaction of specified closing conditions, will close in the third quarter of 2015. As of June 28, 2015, the Company met the criteria to classify the assets and liabilities of the manufacturing operations, primarily comprised of inventory and property, plant and equipment, as assets and liabilities held for sale which have been classified in the accompanying balance sheet as follows: prepaid expenses and other current assets - $19,683; other assets - $26,374; accounts payable and accrued expenses - $2,471. The Company does not expect to record a loss related to the sale of these operations.

~~(10)~~ ~~Segment Reporting~~

Hasbro is a worldwide leader in children's and family leisure time products and services with a broad portfolio of brands and entertainment properties spanning toys, games, licensed products ranging from traditional to high-tech and digital, and film and television entertainment. The Company's segments are (i) U.S. and Canada, (ii) International, (iii) Entertainment and Licensing, and (iv) Global Operations.

The U.S. and Canada segment includes the marketing and selling of action figures, arts and crafts and creative play products, electronic toys and related electronic interactive products, fashion and other dolls, infant products, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, as well as traditional board games and puzzles, and trading card and role-playing games primarily within the United States and Canada. Within the International segment, the Company markets and sells both toy and game products in markets outside of the U.S. and Canada, primarily in the European, Asia Pacific, and Latin and South American regions. The Company's Entertainment and Licensing segment includes the Company's lifestyle licensing, digital gaming, movie and television entertainment operations. The Global Operations segment is responsible for manufacturing and sourcing finished products for the Company's U.S. and Canada and International segments.

Segment performance is measured at the operating profit level. Included in Corporate and Eliminations are certain corporate expenses, including the elimination of intersegment transactions and certain assets benefiting more than one segment. Intersegment sales and transfers are reflected in management reports at amounts approximating cost. Certain shared costs, including global development and marketing expenses and corporate administration, are allocated to segments based upon expenses and foreign exchange rates fixed at the beginning of the year, with adjustments to actual expenses and foreign exchange rates included in Corporate and Eliminations. The accounting policies of the segments are the same as those referenced in note 1.

Results shown for the quarter and six months are not necessarily representative of those which may be expected for the full year 2015, nor were those of the comparable 2014 period representative of those actually experienced for the full year 2014. Similarly, such results are not necessarily those which would be achieved were each segment an unaffiliated business enterprise.

~~Information by segment and a reconciliation to reported amounts for the quarter and six-month periods ended June 28, 2015 and June 29, 2014 are as follows.~~

Quarter Ended
June 28, 2015 June 29, 2014
Net revenues External Affiliate External Affiliate
U.S. and Canada $ 385,183 1,718 383,001 1,467
International 362,760 (96 ) 396,849 21
Entertainment and Licensing 47,640 4,025 47,663 3,496
Global Operations (a) 2,075 350,864 1,749 355,328
Corporate and Eliminations - (356,511 ) - (360,312 )
$ 797,658 - 829,262 -

Six Months Ended
June 28, 2015 June 29, 2014
Net revenues External Affiliate External Affiliate
U.S. and Canada $ 730,873 2,768 720,700 2,677
International 668,473 - 702,324 92
Entertainment and Licensing 108,271 7,434 82,537 6,738
Global Operations (a) 3,541 587,707 3,154 606,868
Corporate and Eliminations - (597,909 ) - (616,375 )
$ 1,511,158 - 1,508,715 -

Quarter Ended Six Months Ended
Operating profit (loss) June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014
U.S. and Canada $ 47,147 46,928 88,570 82,691
International 25,361 29,232 27,264 31,646
Entertainment and Licensing 7,443 14,645 23,845 20,627
Global Operations (a) 2,019 1,810 (1,763 ) 66
Corporate and Eliminations (b) (6,470 ) (10,051 ) (8,211 ) (9,018 )
$ 75,500 82,564 129,705 126,012

Total assets
June 28, 2015
June 29, 2014 December 28, 2014
U.S. and Canada $ 3,095,862 3,050,072 3,663,497
International 2,164,440 2,007,777 2,422,046
Entertainment and Licensing 675,082 741,718 783,878
Global Operations 2,334,761 2,134,524 2,433,888
Corporate and Eliminations (b) (4,039,038 ) (3,795,496 ) (4,771,167 )
$ 4,231,107 4,138,595 4,532,142

~~(a) The Global Operations segment derives substantially all of its revenues, and thus its operating results, from intersegment activities.~~

~~(b)~~ Certain long-term assets, including property, plant and equipment, goodwill and other intangibles, which benefit multiple operating segments, are included in Corporate and Eliminations. Allocations of certain expenses related to these assets to the individual operating segments are done at the beginning of the year based on budgeted amounts. Any differences between actual and budgeted amounts are reflected in Corporate and Eliminations because allocations are translated from the US Dollar to local currency at budget rates when recorded, and Corporate and Eliminations also includes the elimination of inter-company balance sheet amounts.

~~The following table represents consolidated International segment net revenues by major geographic region for the quarter and six-month periods ended June 28, 2015 and June 29, 2014.~~

Quarter Ended Six Months Ended
June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014
Europe $ 185,660 216,268 381,531 423,810
Latin America 98,368 97,019 155,976 150,303
Asia Pacific 78,732 83,562 130,966 128,211
Net revenues $ 362,760 396,849 668,473 702,324

~~The following table presents consolidated net revenues by class of principal products for the quarter and six-month periods ended June 28, 2015 and June 29, 2014.~~

Quarter Ended Six Months Ended
June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014
Boys $ 340,426 335,798 613,024 583,573
Games 211,629 225,702 447,278 446,228
Girls 127,489 163,817 244,616 302,517
Preschool 118,114 103,945 206,240 176,397
Net revenues $ 797,658 829,262 1,511,158 1,508,715

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.

This Quarterly Report on Form 10-Q, including the following section entitled Management's Discussion and Analysis of Financial Condition and Results of Operations, contains forward-looking statements expressing management's current expectations, goals, objectives and similar matters. These forward-looking statements may include statements concerning the Company's product and entertainment plans, anticipated product and entertainment performance, business opportunities, plans and strategies, financial goals, cost savings and efficiency enhancing initiatives and expectations for achieving the Company's financial goals and other objectives. See Item 1A, in Part II of this report and Item 1A, in Part I of the Annual Report on Form 10-K for the year ended December ~~28, 2014,~~27, 2015, for a discussion of factors which may cause the Company's actual results or experience to differ materially from that anticipated in these forward-looking statements. The Company undertakes no obligation to revise the forward-looking statements in this report after the date of the filing. Unless otherwise specifically indicated, all dollar or share amounts herein are expressed in ~~thousands~~millions of dollars or shares, except for per share amounts.

EXECUTIVE SUMMARY

Hasbro, Inc. ("Hasbro" or the "Company") is a global company dedicated to Creating the World's Best Play Experiences. The Company strives to do this through deep consumer engagement and the application of consumer insights, the use of immersive storytelling to build brands, product innovation and development of global business reach. Hasbro applies these principles to leverage its beloved owned and controlled brands, including LITTLEST PET SHOP, MAGIC: THE GATHERING, MONOPOLY, MY LITTLE PONY, NERF, PLAY-DOH and TRANSFORMERS, as well as partner brands. From toys and games, to television programming, motion pictures, digital gaming and a comprehensive consumer product licensing program, Hasbro fulfills the fundamental need for play and connection for children and families around the world. The Company's wholly-owned Hasbro Studios creates entertainment brand-driven storytelling across mediums, including television, film and more.

Each of these elements is executed globally in alignment with Hasbro's strategic game plan, its brand blueprint. At the center of this blueprint, Hasbro re-imagines, re-invents and re-ignites its owned and controlled brands and imagines, invents and ignites new brands, through toy and game innovation, immersive entertainment offerings, including television programming and motion pictures, and a broad range of licensed products. ~~Utilizing consumer engagement and insights coupled with immersive storytelling and product innovation,~~ Hasbro generates revenue and earns cash by developing, marketing and selling products based on global brands in a broad variety of consumer goods categories including toy and game products and distribution of television programming based on the Company's properties, as well as through the out-licensing of rights for third parties to use its properties in connection with products, including digital media and games and lifestyle products. Hasbro also leverages its competencies to develop and market products based on well-known licensed brands, including, but not limited to, DISNEY ~~DESCENDENTS,~~PRINCESS and FROZEN, DISNEY DESCENDANTS, JURASSIC WORLD, MARVEL, SESAME STREET and STAR WARS. MARVEL and STAR WARS are owned by The Walt Disney Company.

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 markets and sells both toy and game products primarily 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~~consumer product licensing, digital licensing and gaming, and movie and television entertainment operations. In addition to these three primary segments, the Company's ~~global development, marketing, manufacturing and~~ product sourcing operations are managed through its Global Operations segment.

~~Second~~

First quarter 2016 highlights:

· First quarter net revenues grew 16% compared to the first quarter of 2015. Absent unfavorable foreign currency translation of approximately $28.6 million, net revenues in the first quarter of 2016 grew 20% compared to the first quarter of 2015.

· 2016 first quarter net revenues from the U.S. and Canada and International segments were up 28% and 13%, respectively, compared to the first quarter of 2015. Absent unfavorable foreign currency translation impact, International segment net revenues in the first quarter of 2016 increased 22% compared to the first quarter of 2015. Entertainment and Licensing segment operating profit declined 67% to $5.4 million compared to $16.4 million in 2015.

· 2016 first quarter net revenues from the Girls category increased 41%, the Boys and Preschool categories increased 24% and 11%, respectively, while Games category revenues declined 2% for the quarter. Franchise Brand revenues grew 1% and were up 4% for the quarter absent the negative impact of foreign exchange.

· Operating profit improved 59% in the first quarter of 2016 compared to the first quarter of 2015 ~~highlights:~~

·	Net revenues decreased approximately 4% compared to the second quarter of 2014, but absent unfavorable foreign currency translation of approximately $71,500, net revenues in the second quarter of 2015 grew 5% compared to the second quarter of 2014.

2015 second quarter net revenues from franchise brands decreased 10%; growth from LITTLEST PET SHOP, MONOPOLY, NERF and PLAY-DOH was more than offset by expected declines from MAGIC: THE GATHERING and TRANSFORMERS. Excluding unfavorable foreign currency translations, franchise brands declined 2.3% for the quarter.

·	~~Growth from the Boys and Preschool categories in the second quarter of 2015 was more than offset by declines in the Games and Girls categories.~~

Second quarter 2015 net revenues from the U.S. and Canada segment were up 1% compared to the second quarter of 2014 while net revenues from the Entertainment and Licensing segment were flat and net revenues from the International segment declined 9% compared to the second quarter of 2014. Absent unfavorable foreign currency translation of approximately $69,500, 2015 International segment net revenues grew 9%.

·	~~Operating profit declined 9% in the second quarter of 2015 compared to the second quarter of 2014 but was up 10% absent unfavorable foreign currency translation of approximately $15,000.~~

~~First half 2015 highlights:~~

·	Net revenues were flat in first half of 2015 compared to the first half of 2014 and, absent unfavorable foreign currency translation of approximately $134,100, 2015 net revenues grew 9% compared to the first half of 2014.

First half 2015 net revenues from franchise brands increased 3%; growth from LITTLEST PET SHOP, MAGIC: THE GATHERING, MONOPOLY, NERF and PLAY-DOH was only partially offset by expected declines from TRANSFORMERS following last year's motion picture release. Excluding unfavorable foreign currency translation, franchise brands increased 11% during the first half of 2015.

·	~~Growth in the Boys and Preschool categories was partially offset by declines in the Girls category. The Games category was flat in the first half of 2015 compared to 2014.~~

First half 2015 net revenues from the U.S. and Canada and Entertainment and Licensing segments were up 1% and 31%, respectively, compared to the first half of 2014 whereas net revenues from the International segment declined 5% compared to the first half of 2014. Absent unfavorable foreign currency translation of approximately $130,500, first half 2015 International segment net revenues grew 14%.

·	~~Operating profit grew 3% in the first half of 2015 compared to the first half of 2014 and was up 26% absent unfavorable foreign currency translation of approximately $28,900.~~

and net earnings increased 83% to $48.8 million compared to $26.7 million in the first quarter of 2015.

In line with our commitment to return excess cash to shareholders, Hasbro increased the quarterly dividend rate from ~~$0.43~~$0.46 per share to ~~$0.46~~$0.51 per share which ~~was~~is effective for the dividend ~~paid in~~scheduled for May ~~2015~~16, 2016 and going forward. During the first half of ~~2015,~~2016, Hasbro repurchased approximately ~~747~~0.5 million shares at a total cost of ~~$46,826~~$35.8 million and an average price of ~~$62.64~~$75.41 per share, respectively.

SUMMARY OF FINANCIAL PERFORMANCE

The components of the results of operations, stated as a percent of net revenues, are illustrated below for the ~~quarter~~quarters ended March 27, 2016 and ~~six-month periods ended June 28, 2015 and June~~March 29, ~~2014.~~2015.

	Quarter Ended
	March 27,		March 29,
	2016		2015
Net revenues		100.0%		100.0%
Costs and expenses:
Cost of sales		34.9		34.7
Royalties		8.4		8.3
Product development		6.9		7.3
Advertising		9.6		9.5
Amortization of intangibles		1.0		1.8
Program production cost amortization		0.7		1.6
Selling, distribution and administration		28.1		29.3
Operating profit		10.3		7.6
Interest expense		2.9		3.4
Interest income		(0.3)		(0.2)
Other (income) expense, net		0.6		(0.5)
Earnings before income taxes		7.1		4.8
Income tax expense		1.5		1.2
Net earnings		5.7		3.6
Net loss attributable to noncontrolling interests		(0.2)		(0.1)
Net earnings attributable to Hasbro, Inc.		5.9%		3.7%

Quarter Ended Six Months Ended
June 28, 2015 June 29, 2014 June 28, 2015 June 29, 2014
Net revenues 100.0 % 100.0 % 100.0 % 100.0 %
Costs and expenses:
Cost of sales 37.0 38.6 35.9 38.4
Royalties 7.2 8.5 7.7 8.0
Product development 7.2 6.2 7.2 6.6
Advertising 9.8 9.9 9.7 9.9
Amortization of intangibles 1.7 1.4 1.7 1.7
Program production cost amortization 0.9 0.8 1.2 0.8
Selling, distribution and administration 26.7 24.6 27.9 26.5
Operating profit 9.5 10.0 8.6 8.4
Interest expense 3.0 2.7 3.2 3.0
Interest income (0.1 ) (0.2 ) (0.1 ) (0.2 )
Other (income) expense, net (0.2 ) (0.4 ) (0.4 ) (0.4 )
Earnings before income taxes 6.7 7.8 5.8 6.0
Income tax expense 1.7 3.8 1.4 1.7
Net earnings 5.1 4.0 4.4 4.3
Net loss attributable to noncontrolling interests (0.2 ) (0.1 ) (0.2 ) (0.1 )
Net earnings attributable to Hasbro, Inc. 5.2 % 4.0 % 4.5 % 4.3 %

RESULTS OF OPERATIONS – CONSOLIDATED

~~Second Quarter of 2015~~

The quarters ended ~~June 28,~~March 27, 2016 and March 29, 2015 ~~and June 29, 2014~~ were each 13-week periods. Net earnings and net earnings attributable to Hasbro, Inc. increased to ~~$40,282~~$47.0 million and ~~$41,809,~~$48.8 million, respectively, for the quarter ended ~~June 28, 2015,~~March 27, 2016, from ~~$32,820~~$25.8 million and ~~$33,475,~~$26.7 million, respectively, for the comparable period of ~~2014.~~2015. Diluted earnings per share attributable to Hasbro, Inc. increased to ~~$0.33~~$0.38 in the ~~second~~first quarter of ~~2015~~2016 from ~~$0.26~~$0.21 in the ~~second~~first quarter of ~~2014. Second quarter 2014 net earnings included an unfavorable tax adjustment of $13,846, or $0.10 per diluted share.~~

2015.

Consolidated net revenues for the quarter ended ~~June 28, 2015 decreased~~March 27, 2016 increased approximately 4%16% compared to the quarter ended ~~June~~March 29, ~~2014 and were negatively impacted~~2015 despite a negative impact by foreign currency translation of approximately ~~$71,500~~$28.6 million as a result of the stronger U.S. dollar in ~~2015~~2016 compared to ~~2014.~~2015. Absent the impact of foreign currency, consolidated net revenues grew 5%20% in the ~~second~~first quarter of ~~2015~~2016 compared to ~~2014.~~2015. Higher net revenues from NERF and PLAY-DOH ~~were~~ more than offset by lower net revenues from TRANSFORMERS, ~~which faced challenging comparisons to the second quarter of 2014 which benefited from the June 2014 theatrical release of~~ ~~TRANSFORMERS: AGE OF EXTINCTION,~~ and, to a lesser extent, lower net revenues from MAGIC: THE GATHERING and ~~MY LITTLE PONY~~LITTLEST PET SHOP. ~~As a result,~~Overall, franchise brands ~~decreased 10%~~increased 1% during the ~~second~~first quarter of ~~2015~~2016 compared to ~~2014.~~2015. Absent ~~an unfavorable~~the impact of foreign ~~currency translation, MY LITTLE PONY revenues~~exchange, franchise brands grew ~~during~~4% for the ~~second quarter~~quarter. Partner Brands also increased due to continued demand for STAR WARS: THE FORCE AWAKENS products and the addition of ~~2015.~~DISNEY PRINCESS and FROZEN products.

The ~~follow~~following table presents net revenues by product category for the quarters ended ~~June 28, 2015~~March 27, 2016 and ~~June~~March 29, ~~2014.~~2015.

	Quarter Ended
	March 27,		March 29,		%
	2016		2015		Change
Boys	$	336.9		272.6	24	%
Games		231.1		235.6	-2	%
Girls		165.4		117.1	41	%
Preschool		97.8		88.1	11	%
Net revenues	$	831.2		713.5	16	%

Quarter Ended
June 28, 2015 June 29, 2014
%
Change

Boys $ 340,426 335,798 1 %
Games 211,629 225,702 -6 %
Girls 127,489 163,817 -22 %
Preschool 118,114 103,945 14 %
Net revenues $ 797,658 829,262

BOYS: Net revenues in the boys' category increased 1%24% in ~~2015~~2016 compared to ~~2014. The boys' category continues to benefit from a strong entertainment line-up.~~2015. Higher net revenues from ~~partner brands, specifically JURASSIC WORLD, MARVEL and STAR WARS, more than~~Franchise Brand NERF were partially offset by lower ~~net~~ revenues from TRANSFORMERS, which in the ~~TRANSFORMERS brand, which benefited~~first quarter of 2015 continued to experience benefits from the June 2014 theatrical ~~release. The MARVEL and JURASSIC WORLD brands were each supported by a second quarter~~release TRANSFORMERS: AGE OF EXTINCTION. Higher net revenues from Partner Brand STAR WARS, which benefited from the December 2015 theatrical ~~releases,~~ ~~AVENGERS: AGE OF ULTRON~~release ~~in May 2015 and~~ ~~JURASSIC WORLD~~ ~~in June 2015. Furthermore, STAR WARS is supported by animated television programming,~~ ~~STAR WARS REBELS,~~ ~~and will be supported by the highly anticipated theatrical release of~~ STAR WARS: THE FORCE AWAKENS, ~~in December 2015~~. were partially offset by lower first quarter 2016 net revenues from MARVEL products.~~Lastly, the franchise brand NERF also contributed to boys' category growth.~~

GAMES: Net revenues from the games category decreased approximately 6%2% in the ~~second~~first quarter of ~~2015~~2016 compared to the ~~second~~first quarter of ~~2014.~~2015. Higher net revenues from ~~franchise brand MONOPOLY~~PIEFACE as well as other games brands, particularly ~~CLUE, CONNECT 4, DUNGEONS & DRAGONS, TROUBLE~~YAHTZEE, DUEL MASTERS, TRIVIAL PURSUIT, JENGA and ~~TWISTER,~~RISK, were more than offset by lower net revenues from franchise ~~brand MAGIC: THE GATHERING. Net revenues from~~brands MAGIC: THE GATHERING products are significantly driven by the timing of new releases. During 2015 the major set release for the first half of the year occurred during the first quarter compared to the second quarter in 2014.

and MONOPLY as well as certain other games brands.

GIRLS: Net revenues in the girls' category ~~decreased 22%~~increased 41% in ~~2015~~the first quarter of 2016 compared to ~~2014 primarily due to expected~~2015. The first quarter of 2016 marked the on-shelf date for Hasbro’s line of DISNEY PRINCESS and FROZEN fashion and small dolls. The addition of these Partner Brands along with DISNEY’S DESCENDANTS and growth in BABY ALIVE more than offset declines ~~from FURBY products. Lower net revenues from~~in Furby as well as Franchise Brands NERF, LITTLEST PET SHOP and MY LITTLE PONY, NERF and FURREAL FRIENDS brands also contributed to the decline. These lower net revenues were slightly offset by increases from PLAY-DOH DOHVINCI products and initial shipments of DISNEY DESCENDANTS products.

PONY.

PRESCHOOL: Net revenues in the preschool category increased ~~14%~~11% in ~~2015~~2016 compared to ~~2014.~~2015. Higher net revenues from PLAY-DOH products as well as sales of product related to the ~~June~~December 2015 theatrical release of ~~JURASSIC WORLD~~STAR WARS: THE FORCE AWAKENS were slightly offset by lower net revenues from ~~core PLAYSKOOL products. In 2014, net revenues from the TRANSFORMERS brand benefited from the June 2014 theatrical release of~~ ~~TRANSFORMERS: AGE OF EXTINCTION.~~TRANSFORMERS.

Operating profit for the quarter ended ~~June 28, 2015 decreased 9%~~March 27, 2016 increased 59% to ~~$75,500,~~$85.9 million, or ~~9.5%~~10.3% of net revenues, from ~~$82,564,~~$54.2 million, or ~~10.0%~~7.6% of net revenues, for the quarter ended ~~June~~March 29, 2014, primarily due to the negative foreign currency translation of approximately $15,000. Absent foreign currency, operating profit grew 10% in the second quarter of 2015 compared to 2014. Higher net revenues combined with more favorable cost of sales and royalty expense contributed to growth in operating profit, absent foreign currency translation.

~~First Six Months of 2015~~

The six-month periods ended June 28, 2015 and June 29, 2014 were each 26-week periods. Net earnings and net earnings attributable to Hasbro, Inc. for the first six months of 2015 were $66,103 and $68,476, respectively, compared to $64,334 and $65,562, respectively, for the first six months of 2014. Diluted earnings per share attributable to Hasbro, Inc. increased to $0.54 in 2015 from $0.50 in 2014. In the first six months of 2014 an unfavorable tax adjustment related to a proposed resolution of outstanding tax matters during the second quarter of 2014 was substantially offset by a favorable settlement of certain open tax years during the first quarter of 2014.

For the six months ended June 28, 2015, consolidated net revenues was $1,511,158 compared to $1,508,715 for the six months ended June 29, 2014 and were negatively impacted by foreign currency translation of approximately $134,100 as a result of the stronger U.S. dollar in 2015 compared to 2014. Absent the impact of foreign currency, consolidated net revenues grew 9% in 2015 compared to 2014. During the first six months of 2015, franchise brand revenues grew nearly 3%. Specifically, five of the seven franchise brands grew, including LITTLEST PET SHOP, MAGIC: THE GATHERING, MONOPOLY, NERF and PLAY-DOH. Excluding unfavorable foreign currency translation, MY LITTLE PONY net revenues grew during the first six months of 2015.

~~The following table presents net revenues by product category for the first six months of 2015 and 2014.~~

Six Months Ended
June 28, 2015 June 29, 2014
%
Change

Boys $ 613,024 583,573 5 %
Games 447,278 446,228 0 %
Girls 244,616 302,517 -19 %
Preschool 206,240 176,397 17 %
Net revenues $ 1,511,158 1,508,715

~~BOYS:~~ Net revenues in boys' category increased 5% in the first six months of 2015 compared to 2014. The boys' category continues to benefit from a strong entertainment line-up. Higher net revenues from partner brands, specifically JURASSIC WORLD, MARVEL and STAR WARS, more than offset lower net revenues from the TRANSFORMERS brand, which benefited from the June 2014 theatrical release. The MARVEL and JURASSIC WORLD brands were each supported by a second quarter 2015 theatrical releases, ~~AVENGERS: AGE OF ULTRON~~ ~~in May 2015 and~~ ~~JURASSIC WORLD~~ ~~in June 2015. Furthermore, STAR WARS is supported by animated television programming,~~ ~~STAR WARS REBELS,~~ ~~and will be supported by the highly anticipated theatrical release of~~ ~~STAR WARS: THE FORCE AWAKENS~~ ~~in December 2015~~. ~~Lastly, the franchise brand NERF also contributed to boys' category growth.~~

~~GAMES:~~ Net revenues from the games category were flat in the first six months of 2015 compared to 2014. Higher net revenues from franchise brands MAGIC: THE GATHERING and MONOPOLY as well as CLUE, DUNGEONS & DRAGONS, LIFE, and TROUBLE where wholly offset by other games brands, including DUEL MASTERS, ELEFUN & FRIENDS, JENGA, OPERATION and ANGRY BIRDS STAR WARS.

~~GIRLS:~~ Net revenues in the girls' category decreased 19% in the six months ended June 28, 2015 compared to the six months ended June 29, 2014, primarily related to lower net revenues from FURBY products. Higher net revenues from PLAY-DOH DOHVINCI and LITTLEST PET SHOP products were more than offset by lower net revenues from MY LITTLE PONY, FURREAL FRIENDS and NERF products.

~~PRESCHOOL:~~ Net revenues from the preschool category grew 17% in the first six months of 2015 compared to 2014. Higher net revenues from PLAY-DOH and PLAYSKOOL HEROES products, primarily TRANSFORMERS RESCUE BOTS, as well as sales of product related to the June 2015 theatrical release of ~~JURASSIC WORLD~~ ~~were slightly offset by lower net revenues from core PLAYSKOOL.~~

Operating profit for the six months ended June 28, 2015 increased 3% to $129,705, or 8.6% of net revenues, from $126,012, or 8.4% of net revenues, for the six months ended June 29, 2014. 2015 operating profit includes negative foreign currency translation of approximately $28,900. Absent the impact of foreign currency, operating profit ~~increased approximately 26%~~grew 67% in the first ~~six months~~quarter of ~~2015~~2016 compared to ~~2014.~~2015. Higher net revenues combined with ~~favorable cost of sales~~lower intangible asset amortization and ~~royalty expense~~programming costs, partially offset by higher operating expenses, contributed to the growth in operating ~~profit, absent foreign currency translation.~~

~~SEGMENT RESULTS~~

Most of the Company's revenues and operating profit are derived from its three principal business segments: the U.S. and Canada segment, the International segment and the Entertainment and Licensing segment. The results of these operations are discussed in detail below.

~~Second~~profit.

First Quarter of ~~2015~~

2016

The following table presents net external revenues and operating profit data for the Company's three principal segments for the quarters ended ~~June 28, 2015~~March 27, 2016 and ~~June~~March 29, ~~2014.~~2015.

	Quarter Ended
	March 27,		March 29,		%
	2016		2015		Change
Net Revenues
U.S. and Canada segment	$	443.6		345.7	28	%
International segment		345.0		305.7	13	%
Entertainment and Licensing segment		42.5		60.6	-30	%

Operating Profit
U.S. and Canada segment	$	78.3		41.4	89	%
International segment		2.9		1.9	50	%
Entertainment and Licensing segment		5.4		16.4	-67	%

Quarter Ended
June 28, 2015 June 29, 2014 % Change
Net Revenues

U.S. and Canada segment $ 385,183 383,001 1 %
International segment 362,760 396,849 -9 %
Entertainment and Licensing segment 47,640 47,663 0 %

Operating Profit

U.S. and Canada segment $ 47,147 46,928 0 %
International segment 25,361 29,232 -13 %
Entertainment and Licensing segment 7,443 14,645 -49 %

U.S. and Canada Segment

The U.S. and Canada segment net revenues for the quarter ended ~~June 28, 2015~~March 27, 2016 increased 1%28% compared to ~~2014.~~2015. Foreign currency translation did not have a significant impact on this segment's net revenues. In the ~~second~~first quarter of ~~2015,~~2016, higher net revenues from the boys, girls and preschool categories ~~were~~more than offset by lower net revenues from the games ~~and girls categories.~~

category.

The boys category benefited from higher net revenues from ~~JURASSIC WORLD,~~STAR WARS, NERF and ~~STAR WARS~~YOKAI WATCH products which were partially offset by lower net revenues from MARVEL, JURASSIC WORLD and TRANSFORMERS products. Games category net revenues declined primarily related to lower net revenues from MAGIC: THE GATHERING products, attributable to the change in release timing described above. The girls' category declined primarily due to lower net revenues from FURBY, NERF REBELLE and FURREAL FRIENDS products. Partially offsetting the declines werepartially offset by higher net revenues from ~~LITTLEST PET SHOP~~DUEL MASTERS and ~~MY LITTLE PONY products. Net~~PIE FACE. In the Preschool category higher net revenues from PLAY-DOH were partially offset by lower revenues from other Preschool brands products. In the ~~preschool~~girls' category ~~benefited~~higher net revenues primarily from the ~~June 2015 theatrical release of~~ ~~JURASSIC WORLD~~ ~~and continued strength~~debut of the ~~Company's franchise brand, PLAY-DOH. These increases~~Company’s DISNEY PRINCESS and FROZEN fashion and small dolls products were ~~only~~ partially offset by lower net revenues ~~from and core PLAYSKOOL products.~~

in Franchise Brand NERF.

U.S. and Canada segment operating profit for the quarter ended ~~June 28, 2015~~March 27, 2016 was ~~$47,147,~~$78.3 million, or ~~12.2%~~17.7% of net revenues, compared to ~~$46,928,~~$41.4 million, or ~~12.3%~~12% of segment net revenues, for the quarter ended ~~June~~March 29, ~~2014.~~

2015. Operating profit improved due to the impact of higher net revenues, partially offset by higher expense levels.

International Segment

International segment net revenues ~~decreased 9%~~increased 13% to ~~$362,760~~$345.0 million for the quarter ended ~~June 28, 2015~~March 27, 2016 from ~~$396,849~~$305.7 million for the quarter ended ~~June~~March 29, ~~2014.~~2015. International segment net revenues for the ~~second~~first quarter of ~~2015~~2016 included unfavorable foreign currency translation of approximately ~~$69,500~~$26.7 million as a result of the stronger U.S. dollar in ~~2015~~2016 compared to ~~2014.~~2015. Absent the impact of foreign currency translation, International segment net revenues increased approximately 9%22% in the ~~second~~first quarter ~~2015~~2016 compared to the ~~second~~first quarter of ~~2014.~~2015. The following table presents net revenues by geographic region for the Company's International segment for the quarters ended ~~June 28, 2015~~March 27, 2016 and ~~June~~March 29, ~~2014.~~2015.

	Quarter Ended
	March 27,		March 29,		%
	2016		2015		Change
Europe	$	$224.1		$195.9	14	%
Latin America		$55.6		$57.6	-3	%
Asia Pacific		$65.3		$52.2	25	%
Net revenues	$	$345.0		$305.7	13	%

Quarter Ended
June 28, 2015 June 29, 2014
%
Change

Europe $ 185,660 216,268 -14 %
Latin America 98,368 97,019 1 %
Asia Pacific 78,732 83,562 -6 %
Net revenues $ 362,760 396,849

Foreign currency translation negatively impacted the major geographic regions as follows: Europe - ~~$43,300,~~$9.8 million, Latin America - ~~$20,800~~$13.0 million and Asia Pacific - ~~$5,400.~~$3.9 million. Absent foreign currency translation, the underlying business grew across all major geographic regions, up 6%33% in Europe, ~~23%~~19% in Latin America and 1%19% in Asia Pacific. ~~Net revenues in emerging markets decreased 11% in the second quarter of 2015 compared to 2014; however, excluding~~Excluding the impact of unfavorable foreign exchange, ~~these~~ net revenues in emerging markets increased ~~9%.~~approximately 6% in the first quarter of 2016 compared to 2015.

In the ~~second~~first quarter of ~~2015, higher~~2016, all four product categories experienced net ~~revenues from the preschool category were more than offset by lower net revenues from the boys, games and girls categories.~~

revenue growth. In the boys' category higher net revenues from ~~partner brands JURASSIC WORLD, MARVEL~~Franchise Brand NERF and Partner Brand STAR WARS ~~as well as higher net revenues from franchise brand NERF were~~ more than offset by lower net revenues from TRANSFORMERS and MARVEL products. In the games category, higher net revenues from ~~franchise brand MONOPOLY were~~PIE FACE and MAGIC: THE GATHERING more than offset by lower net revenues from other game brands, including ~~MAGIC: THE GATHERING.~~MONOPOLY. Lower girls category net revenues from FURBY, NERF and LITTLEST PET SHOP products in the ~~second~~first quarter of ~~2015~~2016 compared to ~~2014 as well as lower net revenues from MY LITTLE PONY and NERF~~2015 were ~~only partially~~more than offset by higher net revenues from ~~PLAY-DOH DOHVINCI.~~DISNEY PRINCESS and FROZEN dolls, DISNEY DECENDANTS and BABY ALIVE. In the preschool category higher net revenues from PLAY-DOH ~~and JURASSIC WORLD~~ products ~~were partially~~more than offset by lower net revenues from core MARVEL, PLAYSKOOL and ~~TONKA~~TRANSFORMERS products.

International segment operating profit ~~decreased 13%~~increased 50% to ~~$25,361,~~$2.9 million, or ~~7.0%~~0.8% of net external revenues, for the quarter ended ~~June 28, 2015~~March 27, 2016 from ~~$29,232,~~$1.9 million, or ~~7.4%~~0.6% of segment net external revenues, for the quarter ended ~~June~~March 29, ~~2014. Foreign exchange had a significant impact on net revenues from the International segment which also impacted operating profit; absent the impact of foreign exchange translation,~~2015. The increase in operating profit ~~would have increased~~was primarily due to the increase in ~~the second quarter of 2015 compared to 2014.~~

revenues discussed above, partially offset by higher administrative costs including a $13.8 million bad debt provision for a potentially uncollectable receivable.

Entertainment and Licensing Segment

Entertainment and Licensing segment net revenues for the quarter ended ~~June 28, 2015 were $47,640~~March 27, 2016 decreased 30% to $42.5 million compared to ~~$47,663~~$60.6 million for the quarter ended ~~June~~March 29, ~~2014. Higher~~2015. Lower net revenues from ~~lifestyle~~entertainment and consumer product licensing, were ~~wholly~~only partially offset by ~~lower~~an increase in Digital Gaming. Entertainment net revenues in 2015 included revenue from ~~distribution of~~a multi-year streaming deal for Hasbro Studios television ~~programming and digital gaming.~~

programming.

Entertainment and Licensing segment operating profit decreased to ~~$7,443,~~$5.4 million, or ~~15.6%~~12.8% of external net revenues, for the quarter ended ~~June 28, 2015~~March 27, 2016 from ~~$14,645,~~$16.4 million, or ~~30.7%~~27.1% of segment net revenues, for the quarter ended ~~June~~March 29, ~~2014.~~2015. Overall, Entertainment and Licensing segment operating profit and operating profit margin declined primarily due to ~~a less favorable revenue mix and higher operating expenses, including increased amortization of intangibles related to digital gaming rights reacquired~~the decline in ~~2005 and 2007.~~

revenues.

Global Operations

Global Operations segment operating profit ~~was consistent compared with 2014, increasing marginally~~increased to ~~$2,019~~$3.4 million for the quarter ended ~~June 28, 2015 from $1,810~~March 27, 2016 compared to a loss of $3.8 million for the quarter ended ~~June~~March 29, ~~2014.~~

2015 attributable to increased sourcing volume as well as lower overhead costs in 2016.

Corporate and Eliminations

The operating loss in Corporate and eliminations totaled ~~$6,470~~$4.2 million for ~~the second quarter of 2015 compared to $10,051 for the second quarter of 2014.~~

~~First Six Months of 2015~~

~~The following table presents net external revenues and operating profit data for the Company's three principal segments for each of the six months ended June 28, 2015 and June 29, 2014.~~

Six Months Ended
June 28, 2015 June 29, 2014 % Change
Net Revenues
U.S. and Canada segment $ 730,873 720,700 1 %
International segment 668,473 702,324 -5 %
Entertainment and Licensing segment 108,271 82,537 31 %

Operating Profit
U.S. and Canada segment $ 88,570 82,691 7 %
International segment 27,264 31,646 -14 %
Entertainment and Licensing segment 23,845 20,627 16 %

~~U.S. and Canada Segment~~

The U.S. and Canada segment net revenues for the six months ended June 28, 2015 increased 1% compared to 2014. Foreign currency translation did not have a significant impact on segment net revenues. In the first six months of 2015, higher net revenues from the boys, games and preschool categories were partially offset by lower net revenues from the girls category.

The boys category grew in the first six months of 2015 compared to 2014. Higher net revenues from JURASSIC WORLD, MARVEL, NERF and STAR WARS products were partially offset by lower net revenues from TRANSFORMERS products. Higher net revenues from the games category reflect higher net revenues from franchise brands MAGIC: THE GATHERING and MONOPOLY as well as higher net revenues from CLUE, DUNGEONS & DRAGONS, LIFE, TROUBLE and TWISTER products. These increases were only partially offset by lower net revenues from DUELMASTERS and ELEFUN & FRIENDS products. In the girls' category, lower net revenues from FURBY, EASY BAKE, MY LITTLE PONY, NERF REBELLE and FURREAL FRIENDS products were partially offset by higher net revenues from LITTLEST PET SHOP and PLAY-DOH DOHVINCI products. Segment net revenues from the preschool category increased in the first six months of 2015 compared to 2014, benefiting from continued strength of the Company's franchise brand, PLAY-DOH as well as the June 2015 theatrical release of ~~JURASSIC WORLD. These higher net revenues were partially offset by lower never revenues from core PLAYSKOOL and TONKA products.~~

U.S. and Canada segment operating profit for the six months ended June 28, 2015 increased to $88,570, or 12.1% of net revenues, from $82,691, or 11.5% of segment net revenues, for the six months ended June 29, 2014. Higher operating profit and operating profit margin reflects higher net revenues combined with more favorable cost of sales and royalty expenses, partially offset by higher expenses, primarily advertising and selling, distribution and administration expenses, in both dollars and as a percent of net revenues. Increased selling, distribution and administration expenses include expected increases as well as continued investment in digital offerings under the MAGIC: THE GATHERING brand.

~~International Segment~~

International segment net revenues decreased 5% to $668,473 for the six months ended June 28, 2015 from $702,324 for the six months ended June 29, 2014. 2015 International segment net revenues include unfavorable foreign currency translation of approximately $130,500. Absent the impact of foreign currency translation, International segment net revenues grew 14% for the first six months of 2015. The following table presents net revenues by geographic region for the Company's International segment for the six-month periods ended June 28, 2015 and June 29, 2014.

Six Months Ended
June 28, 2015 June 29, 2014 % Change
Europe $ 381,531 423,810 -10 %
Latin America 155,976 150,303 4 %
Asia Pacific 130,966 128,211 2 %
Net revenues $ 668,473 702,324

Foreign currency translation negatively impacted the major geographic regions as follows: Europe - $93,500, Latin America - $28,800 and Asia Pacific - $8,200. Absent foreign currency translation, the underlying business grew across all major geographic regions, up 12% in Europe, 23% in Latin America and 9% in Asia Pacific. Net revenues in emerging markets, decreased 5% in the first six months of 2015 compared to 2014; however, excluding the impact of unfavorable foreign exchange, these net revenues increased 15%.

In the first six months of 2015, higher net revenues from the boys and preschool categories were more than offset by lower net revenues from the games and girls categories. In the boys' category, higher net revenues from partner brands JURASSIC WORLD, MARVEL and STAR WARS as well as higher net revenues from franchise brand NERF were partially offset by lower net revenues from TRANSFORMERS products. In the games category, higher net revenues from franchise brand MONOPOLY were more than offset by lower net revenues from other game brands, including MAGIC: THE GATHERING. Net revenues from the girls' category declined from 2014 to 2015, primarily reflecting lower net revenues from FURBY products as well as lower net revenues from MY LITTLE PONY and NERF which were partially offset by higher net revenues from PLAY-DOH DOHVINCI. In the preschool category, higher net revenues from PLAY-DOH and JURASSIC WORLD products in the first six months of 2015 compared to 2014 were only partially offset by lower net revenues from core PLAYSKOOL and TONKA products.

International segment operating profit decreased to $27,646, or 4.1% of net revenues, for the six months ended June 28, 2015 from $31,646, or 4.5% of segment net revenues, for the six months ended June 29, 2014. The decrease in operating profit and margin is primarily due to the impact of unfavorable foreign currency translation.

~~Entertainment and Licensing Segment~~

Entertainment and Licensing segment net revenues for the six months June 28, 2015 increased 31% to $108,271 from $82,537 for the six months ended June 29, 2014. Higher entertainment revenues related to a multi-year digital distribution agreement for Hasbro Studios programming along with higher lifestyle licensing revenues were the primary drivers of the segment's increased net revenues.

Entertainment and Licensing segment operating profit increased to $23,845, or 22.0% of net revenues, for the six months ended June 28, 2015 from $20,627, or 25.0% of segment net revenues, for the six months ended June 29, 2014. Improved Entertainment and Licensing segment operating profit in the first quarter of ~~2015 reflects the higher profit impact of increased lifestyle licensing and programming revenues, partially offset by higher expense levels.~~

~~Global Operations~~

~~Global Operations segment operating loss of $1,763~~2016 compared to $1.7 million for the first ~~six months~~quarter of ~~2015 compares to an operating profit of $66 for the first six months of 2014.~~

~~Corporate and Eliminations~~

~~Operating loss in Corporate and Eliminations for the first six months of 2015 was $8,211, which is consistent with the operating loss for the first six months of 2014 of $9,018.~~

2015.

OPERATING COSTS AND EXPENSES

~~Second~~

First Quarter of ~~2015~~

2016

The Company's costs and expenses, stated as percentages of net revenues, are illustrated below for the quarters ended ~~June 28, 2015~~March 27, 2016 and ~~June~~March 29, ~~2014.~~2015.

	Quarter Ended
	March 27,		March 29,
	2016		2015
Cost of sales	34.9	%	34.7	%
Royalties	8.4		8.3
Product development	6.9		7.3
Advertising	9.6		9.5
Amortization of intangibles	1.0		1.8
Program production cost amortization	0.7		1.6
Selling, distribution and administration	28.1		29.3

Quarter Ended

June 28, 2015 June 29, 2014
Cost of sales

37.0
%

38.6
%
Royalties

7.2

8.5

Product development

7.2

6.2

Advertising

9.8

9.9

Amortization of intangibles

1.7

1.4

Program production cost amortization

0.9

0.8

Selling, distribution and administration

26.7

24.6

Cost of sales ~~decreased 8%~~increased 17.2% from ~~$320,336,~~$247.7 million, or ~~38.6%~~34.7% of net revenues, for the quarter ended ~~June~~March 29, ~~2014~~2015 to ~~$295,399,~~$290.2, or ~~37.0%~~34.9% of net revenues for the quarter ended ~~June 28, 2015. In dollars, the reduction in costs~~March 27, 2016. Costs of sales ~~reflects a combination of lower~~increased in dollars primarily due to higher net revenues ~~and~~compared to the ~~impact~~first quarter of ~~foreign exchange.~~2015. As a percent of net revenues, the ~~reduction in~~relatively flat costs of sales reflects a combination of a more favorable product mix and foreign exchange hedges related to product ~~purchases.~~purchases, offset by the impact of lower entertainment and licensing revenues and lower MAGIC: THE GATHERING revenues. This more favorable product mix in part reflects higher net revenues from royalty-bearing products, specifically those related to the ~~JURASSIC WORLD and MARVEL brands,~~STAR WARS brand which generally carry higher pricing and, therefore, have a lower cost of sales as a percentage of net revenues.

Royalty expense for the quarter ended ~~June 28, 2015~~March 27, 2016 was ~~$57,069,~~$70.0 million, or ~~7.2%~~8.4% of net revenues, compared to ~~$70,533,~~$59.1 million, or ~~8.5%~~8.3% of net revenues, for the quarter ended ~~June~~March 29, 2014. Lower royalty expense in the second quarter of 2015 compared to 2014 reflects a favorable royalty-bearing product mix, including lower net sales of royalty-bearing TRANSFORMERS products, supported by the June 2014 release of ~~TRANSFORMERS: AGE OF EXTINCTION,~~ ~~partially offset by royalties related to higher net sales of MARVEL, JURASSIC WORLD and STAR WARS products in the second quarter of 2015~~.

Product development expense for the quarter ended June 28, 2015 was $57,609, or 7.2% of net revenues, compared to $51,707, or 6.2% of net revenues, for the quarter ended June 29, 2014. Higher product development expense, in dollars and as a percentage of net revenues, primarily reflects costs associated with development of the DISNEY PRINCESS and FROZEN product lines under the license agreement with The Walt Disney Company. The Company will continue to incur these development costs in 2015 in advance of commencement of the licensing period and product shipments in 2016.

Advertising expense for the quarter ended June 28, 2015 was $78,365, or 9.8% of net revenues, compared to $81,693, or 9.9% of net revenues, for the quarter ended June 29, 2014. Lower net revenues resulted in lower advertising expense in the second quarter of 2015 compared to 2014, which was consistent as a percentage of net revenues.

Amortization of intangibles was $13,348, or 1.7% of net revenues, compared to $11,892, or 1.4% of net revenues, for the quarter ended June 29, 2014. The increase is primarily due to higher amortization of digital gaming rights reacquired in 2005 and 2007. The second quarter of 2015 was the last quarter of amortization of these assets.

Program production cost amortization was consistent year-over-year, increasing marginally to $7,220, or 0.9% of net revenues, for the quarter ended June 28, 2015 from $6,710, or 0.8% of net revenues, for the quarter ended June 29, 2015. ~~Program production costs are capitalized as incurred and amortized using the individual-film-forecast method.~~

For the quarter ended June 28, 2015, the Company's selling, distribution and administration expenses increased to $213,148, or 26.7% of net revenues, from $203,827, or 24.6% of net revenues, for the quarter ended June 29, 2014. Higher administration expenses were partially offset by shipping and warehousing expenses. Marketing and sales expenses were flat compared to the second quarter of 2014. Foreign exchange resulted in a decrease of $15,700. Excluding the impact of foreign exchange, increased 2015 expenses are primarily the result of higher performance-based stock compensation, investments in MAGIC: THE GATHERING, depreciation expense and other general cost increases, such as salaries and wages.

~~First Six Months of 2015~~

~~The Company's costs and expenses, stated as percentages of net revenues, are illustrated below for the six-month periods ended June 28, 2015 and June 29, 2014.~~

Six Months Ended
June 28, 2015 June 29, 2014
Cost of sales 35.9 % 38.4 %
Royalties 7.7 8.0
Product development 7.2 6.6
Advertising 9.7 9.9
Amortization of intangibles 1.7 1.7
Program production cost amortization 1.2 0.8
Selling, distribution and administration 27.9 26.5

Cost of sales for the six months ended June 28, 2015 decreased to $543,134, or 35.9% of net revenues, from $578,881, or 38.4% of net revenues, for the six months ended June 29, 2014. Lower cost of sales on higher net revenues reflects more favorable product and revenue mix in the first half of 2015 compared to the first half of 2014. This more favorable product mix reflects higher net revenues from royalty-bearing products, specifically those related to the JURASSIC WORLD and MARVEL brands, which generally carry higher pricing and, therefore, have a lower cost of sales as a percentage of net revenues. Furthermore, Entertainment and Licensing segment net revenues, which also have lower cost of sales, were 7.2% of net revenues in the first half of 2015 compared to 5.5% of net revenues in the first half of 2014. Lastly, the first half of 2015 benefited from a more favorable impact from foreign exchange hedges related to product purchases.

~~Royalty expense for the six months ended June 28, 2015 was $116,158, or 7.7% of net revenues, compared to $120,114, or 8.0% of net revenues, for the six months ended June 29, 2014.~~ Fluctuations in royalty expense are generally related to the volume of entertainment-driven products sold in a given period, especially if there is a major motion picture release. ~~Lower~~Growth in net revenues from partner brands, particularly related to STAR WARS, and DISNEY PRINCESS and FROZEN products, generated higher royalty expense in dollars and slightly higher as a percentage of net revenues during the first ~~half~~quarter of ~~2015~~2016 compared to ~~2014 reflects a favorable royalty-bearing product mix, including lower net sales of royalty-bearing TRANSFORMERS products, supported by~~ the ~~June 2014 release of~~ ~~TRANSFORMERS: AGE OF EXTINCTION,~~ ~~partially offset by royalties related to higher net sales of MARVEL, JURASSIC WORLD and STAR WARS products~~same period in ~~the first half of~~ 2015.

Product development expense for the ~~six months~~quarter ended ~~June 28, 2015 increased to $109,506,~~March 27, 2016 was $57.2 million, or ~~7.2%~~6.9% of net revenues, ~~from $98,964,~~compared to $51.9 million, or ~~6.6%~~7.3% of net revenues, for the ~~six months~~quarter ended ~~June~~March 29, ~~2014.~~2015. Higher product development expense, in dollars, primarily reflects the Company’s continued investment in innovation across our brand portfolio in both Franchise and Partner brands.

Advertising expense for the quarter ended March 27, 2016 was $79.9 million, or 9.6% of revenues, compared to $67.7 million, or 9.5% of net revenues, for the quarter ended March 29, 2015. In dollars, the increase primarily reflects growth in revenue. Advertising expense was fairly consistent as a percentage of net ~~revenues, primarily reflects costs associated with development~~revenues.

Amortization of the DISNEY PRINCESS and FROZEN product lines under the license agreement with The Walt Disney Company. The Company will continue to incur these development costs in 2015 in advance of commencement of the licensing period and product shipments in 2016.

~~Advertising expense for the six months ended June 28, 2015~~intangibles was ~~$146,107,~~$8.7 million, or ~~9.7%~~1.0% of net revenues, compared to ~~$148,952,~~$13.0 million, or ~~9.9%~~1.8% of net revenues, for the ~~six months~~quarter ended ~~June~~March 29, ~~2014.~~2015. The ~~reduction in advertising expense as a percent of net revenues~~decrease is primarily resulted from the mix of revenues, including the increase in the Entertainment and Licensing segment, as well as the royalty-bearing product mix discussed above. Entertainment-backed product lines generally require less in advertising by the Company.

~~Amortization of intangibles was $26,299,~~due to certain assets which became fully amortized during 2015.

Program production cost amortization decreased to $6.2 million or ~~1.7%~~0.7% of net revenues, for the ~~six months~~quarter ended ~~June 28, 2015 compared to $25,294,~~March 27, 2016 from $11.1 million, or ~~1.7%~~1.6% of net revenues, infor the ~~first six months of 2014. The marginal increase reflects higher amortization related to digital gaming rights which became fully amortized during the second~~ quarter ~~of 2015, partially offset by certain assets which were fully amortized during 2014.~~

~~Program production cost amortization increased in the first six months of 2015 to $18,316, or 1.2% of net revenues, from $11,368, or 0.8% of net revenues, in the first six months of 2014.~~ended March 29, 2015. Program production costs are capitalized as incurred and amortized using the individual-film-forecast method. ~~Higher program production cost amortization~~The decrease in ~~the first half of 2015 reflects higher net revenues during~~ the first quarter of 2016 primarily relates to higher first quarter revenues in 2015 ~~from a~~due to the multi-year digital distribution agreement for Hasbro Studios ~~programming.~~

Programming.

For the ~~six months~~quarter ended ~~June 28, 2015,~~March 27, 2016, the Company's selling, distribution and administration expenses increased to ~~$421,933,~~$233.2 million, or ~~27.9%~~28.1% of net revenues, from ~~$399,130,~~$208.8 million, or ~~26.5%~~29.3% of net revenues, for the ~~six months~~quarter ended ~~June~~March 29, ~~2014,~~2015. Higher selling, distribution and administrative costs primarily ~~related to~~reflect higher ~~administration expenses. Shipping and warehousing and~~ marketing and sales, ~~expenses were flat~~administration, and distribution costs in the first quarter of 2016 compared to ~~the first half of 2014.~~2015. Foreign exchange resulted in a decrease of ~~$28,900. Excluding~~approximately $7.7 million. Administration costs in the ~~impact~~first quarter of ~~foreign exchange,~~2016 includes $13.8 million related to a provision for bad debt related to a customer in the International segment. Other increases in administration and marketing and sales included increased ~~2015 expenses are primarily the result of higher performance-based~~compensation, including stock compensation, and continued investments in our brands. The increase in distribution costs during the ~~MAGIC: THE GATHERING brand, depreciation expense~~first quarter of 2016 was primarily due to higher revenue volume and ~~other general cost increases, such as salaries and wages.~~

inventory levels.

NON-OPERATING (INCOME) EXPENSE

Interest expense for the ~~second~~first quarter ~~and first six months of 2015~~ totaled ~~$24,186 and $48,771, respectively,~~$24.0 million compared to ~~$22,802 and $45,230~~$24.6 million for the comparable ~~and respective periods~~period of ~~2014. Increased interest expense~~2015.

Interest income was $2.2 million for the first quarter of 2016 compared to $0.9 million in the first quarter ~~and year-to-date periods reflects favorable interest rate swap agreements that were in place during the first half~~ of ~~2014.~~

~~Interest income of $690 and $1,620 in the second quarter and first six months of 2015, respectively, compared to $1,165 and $2,491 in the second quarter and first six months of 2014.~~2015. Higher ~~average~~invested cash balances in ~~2015~~2016 compared to ~~2014~~2015 were ~~more than~~partially offset by lower average interest rates, particularly in international jurisdictions.

Other ~~income,~~expense, net of ~~$1,642 and $5,407~~$4.9 million for the quarter ~~and six months~~ ended ~~June 28, 2015, respectively,~~March 27, 2016 compared to other income, net of ~~$3,590 and $7,239~~$3.8 million for the quarter ~~and six months~~ ended ~~June~~March 29, ~~2014.~~2015. Improved earnings from ~~Discovery Family Channel~~the Company’s joint venture television network in the ~~second~~first quarter ~~and first half~~ of ~~2015~~2016 compared to ~~2014~~2015 were more than offset by increased foreign exchange losses in ~~2015~~2016 compared to ~~foreign exchange gains in the second quarter and first six months of 2014. Other income, net in~~ the first ~~six months~~quarter of ~~2015 and 2014 each include gains on the sale of certain assets of $2,800 and $3,400, respectively.~~

2015.

INCOME TAXES

Income taxes totaled ~~$13,364~~$12.2 million on pre-tax earnings of ~~$53,646~~$59.2 million in the ~~second~~first quarter ~~of 2015~~ compared to income taxes of ~~$31,697~~$8.5 million on pre-tax earnings of ~~$64,517~~$34.3 million in the ~~second~~first quarter of ~~2014. For the six month period, income taxes totaled $21,858 on pre-tax earnings of $87,961 in 2015 compared to income taxes of $26,178 on pre-tax earnings of $90,512 in 2014.~~2015. Both periods, as well as the full year ~~2014,~~2015, were impacted by certain discrete tax events including the accrual of potential interest and penalties on certain tax positions. During the first ~~six~~three months of ~~2015,~~2016, favorable discrete tax adjustments were a net benefit of ~~$1,979~~$3.4 million compared to a net ~~expense~~benefit of ~~$1,921~~$0.8 million in the first ~~six~~three months of ~~2014.~~2015. The favorable discrete tax adjustment for the first ~~six~~three months of ~~2015~~2016 includes benefits related to expiration of statutes of limitation for certain tax ~~positions and the filing of 2012 and 2013 amended tax returns.~~positions. Absent discrete items, the adjusted tax rate for the first ~~six months~~quarters of 2016 and 2015 were 26.5% and ~~2014 were 27.1% and 26.8%~~27.0%, respectively. The adjusted rate of ~~27.1%~~26.5% for the ~~six~~three months ended ~~June 28, 2015~~March 27, 2016 is comparable to the full year ~~2014~~2015 adjusted rate ~~26.5%~~of 26.4%.

OTHER INFORMATION

Historically, the Company's revenue pattern has shown the second half of the year to be more significant to its overall business than the first half. The Company expects that this concentration will continue, particularly as more of its business has shifted to larger customers with order patterns concentrated in the second half of the year. The concentration of sales in the second half of the year increases the risk of (a) underproduction of popular items, (b) overproduction of less popular items, and (c) failure to achieve compressed shipping schedules.

The toy and game business is characterized by customer order patterns which vary from year to year largely because of differences each year in the degree of consumer acceptance of product lines, product availability, marketing strategies and inventory policies of retailers, the dates of theatrical releases of major motion pictures for which the Company has product licenses, and changes in overall economic conditions. As a result, comparisons of the Company's unshipped orders on any date with those at the same date in a prior year are not necessarily indicative of the Company's expected sales for that year. Moreover, quick response inventory management practices result in fewer orders being placed significantly in advance of shipment and more orders being placed for immediate delivery. Although the Company may receive orders from customers in advance, it is a general industry practice that these orders are subject to amendment or cancellation by customers prior to shipment and, as such, the Company does not believe that these unshipped orders, at any given date, are indicative of future sales.

In May 2014, the Financial Accounting Standards Board ("FASB"), in cooperation with the International Accounting Standards Board ("IASB"), issued ASU No. 2014-09, Revenue from Contracts with Customers (ASC 606). This ASU supersedes the revenue recognition requirements in Accounting Standards Codification 605 – Revenue Recognition and most industry-specific guidance throughout the Codification. This new guidance provides a five-step model for analyzing contracts and transactions to determine when, how and if revenue is recognized. Revenue should be recognized to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the company expects to be entitled in exchange for those goods or services. This ASU is now effective for fiscal years beginning after December 15, 2017, and for interim periods within those fiscal years, and may be adopted early but not before December 15, 2016. The Company is evaluating the requirements of ASU 2014-09 and its potential impact on the Company's financial statements and does not presently believe the adoption of this new standard will have a material impact on the Company’s results or financial statements.

In ~~April 2015,~~February 2016, the FASB issued ASU ~~No. 2015-03,~~ 2016-02, ~~Interest – Imputation~~Leases (Topic 842) (ASU 2016-02), which will require lessees to recognize a right-of-use asset and a lease liability for virtually all of ~~Interest (ASC 835-30),~~ ~~which simplifies~~their leases. The liability will be based on the ~~presentation~~present value of ~~debt issuance costs. ASU 2015-03 requires debt issuance costs related to long-term debt~~lease payments and the asset will be based on the liability. For income statement purposes, a dual model was retained requiring leases to be ~~presented~~either classified as operating or finance. Operating leases will result in ~~the balance sheet as~~straight-line expense while finance leases will result in a ~~reduction to the carrying amount of the related debt liability, consistent with the presentation of discounts.~~front-loaded expense pattern. Additional quantitative and qualitative disclosures will be required. ASU ~~2015-03~~2016-02 is ~~effective~~required for public companies for fiscal years beginning after December 15, ~~2015,~~2018 and must be adopted using a modified retrospective transition. The Company is evaluating the requirements of ASU 2016-02 and its potential impact on the Company’s financial statements.

In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which amends ASC Topic 718, Compensation – Stock Compensation. The ASU includes provisions intended to simplify various aspects related to how share-based payments are accounted for and presented in the financial statements including (1) a requirement to record all of the tax effects related to share-based payments at settlement (or expiration) through the income statement; (2) a requirement that all tax-related cash flows resulting from share-based payments be reported as operating activities on the statement of cash flows; (3) the removal of the requirement to withhold shares upon settlement of an award at the minimum statutory withholding requirement; (4) a requirement that all cash payments made to taxing authorities on the employees’ behalf for withheld shares shall be presented as financing activities in the statements of cash flows; (5) entities will be permitted to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards choosing either to estimate forfeitures as required today or recognize forfeitures as they occur. ASU 2016-09 is effective for public companies for annual reporting periods beginning after December 15, 2016, and interim periods within ~~those fiscal years, and is eligible for early~~that reporting period. Early adoption will be permitted in any interim or annual period, with any adjustments reflected as of the beginning of the year of adoption. The Company is evaluating the requirements of ASU 2016-09 and its potential impact on the Company’s financial statements.

In July 2015, the FASB issued ASU 2015-11, Simplifying the Measurement of Inventory (“ASU 2015-11), which replaces the concept of market price with the single measurement of net realizable value. ASU 2015-11 is effective for public companies for fiscal years beginning after December 15, 2016 and interim periods within fiscal years beginning after December 15, 2017. The Company has evaluated the requirements of ASU 2015-11 and does not presently ~~records deferred debt costs in other assets in~~believe that the ~~consolidated balance sheet. At June 28, 2015, deferred debt costs related to long-term debt totaled $14,018. Upon~~ adoption ~~these deferred debt costs~~of the new standard will ~~be presented as~~have a ~~reduction of long-term debt.~~

material impact on the Company’s results or financial statements.

LIQUIDITY AND CAPITAL RESOURCES

The Company has historically generated a significant amount of cash from operations. In ~~2014~~2015 the Company funded its operations and liquidity needs primarily through cash flows from operations, and, when needed, using borrowings under its available lines of credit and commercial paper program.

During the first ~~half~~quarter of ~~2015,~~2016, the Company continued to fund its working capital needs primarily through cash flows from operations and, when needed, lines of credit and commercial paper. The Company believes that the funds available to it, including cash expected to be generated from operations and funds available through its available lines of credit and commercial paper program, are adequate to meet its working capital needs for the remainder of ~~2015.~~2016. However, unexpected events or circumstances such as material operating losses or increased capital or other expenditures may reduce or eliminate the availability of external financial resources. In addition, significant disruptions to credit markets may also reduce or eliminate the availability of external financial resources. Although management believes the risk of nonperformance by the counterparties to the Company's financial facilities is not significant, in times of severe economic downturn in the credit markets it is possible that one or more sources of external financing may be unable or unwilling to provide funding to the Company.

As of ~~June 28, 2015~~March 27, 2016 the Company's cash and cash equivalents totaled ~~$858,458,~~$1,095.9 million, substantially all of which is held outside of the United States. Deferred income taxes have not been provided on the majority of undistributed earnings of international subsidiaries as such earnings are indefinitely reinvested by the Company. Accordingly, such international cash balances are not available to fund cash requirements in the United States unless the Company changes its reinvestment policy. The Company currently has sufficient sources of cash in the United States to fund cash requirements without the need to repatriate any funds. If the Company changes its policy of permanently reinvesting international earnings, it would be required to accrue for any additional income taxes representing the difference between the tax rates in the United States and the applicable tax jurisdiction of the international subsidiaries. If the Company repatriated the funds from its international subsidiaries, it would then be required to pay the additional U.S. income tax. The majority of the Company's cash and cash equivalents held outside of the United States as of ~~June 28, 2015~~March 27, 2016 is denominated in the U.S. dollar.

Because of the seasonality in the Company's cash flow, management believes that on an interim basis, rather than discussing only its cash flows, a better understanding of its liquidity and capital resources can be obtained through a discussion of the various balance sheet categories as well. Also, as several of the major categories, including cash and cash equivalents, accounts receivable, inventories and short-term borrowings, fluctuate significantly from quarter to quarter, again due to the seasonality of its business, management believes that a comparison to the comparable period in the prior year is generally more meaningful than a comparison to the prior quarter or prior year-end.

At ~~June 28, 2015,~~March 27, 2016, cash and cash equivalents, net of short-term borrowings, increased to ~~$690,581~~$1,006.9 million from ~~$576,963~~$849.5 million at ~~June~~March 29, ~~2014.~~2015. Net cash provided by operating activities in the first ~~half~~quarter of ~~2015~~2016 was ~~$236,104~~$293.6 million compared to ~~$109,270~~$315.3 million in the first ~~half~~quarter of 2014. Lower net cash provided by operating activities in 2014 reflects a payment of $58,040 resulting from the settlement of an arbitration award, higher royalty advances, and increased working capital.2015. On a trailing twelve month basis, the Company generated ~~$581,245~~$530.8 million in operating cash flows as of the end of the first ~~half~~quarter of ~~2015~~2016 compared to ~~$212,266~~$527.7 million as of the end of the first ~~half~~quarter of ~~2014~~2015 and ~~$454,411~~$552.4 million for the fiscal year ended December ~~28, 2014.~~

27, 2015.

Accounts receivable ~~decreased 4%~~increased 19% to ~~$709,437~~$670.7 million at ~~June 28,~~March 27, 2016 from $563.3 million at March 29, 2015 ~~from $738,899 at June 29, 2014~~ and includes a decrease of approximately ~~$100,800~~$20.9 million due to a stronger U.S. dollar at ~~June 28, 2015~~March 27, 2016 compared to ~~June~~March 29, ~~2014.~~2015. Absent the impact of foreign currency translation, accounts receivable increased approximately ~~10%~~23% reflecting the aforementioned 5%20% revenue growth, absent foreign exchange translation, in the ~~second~~first quarter of ~~2015~~2016 compared to ~~2014.~~2015. Days sales outstanding ~~was flat~~increased from ~~June~~71 days at March 29, ~~2014~~2015 to ~~June 28, 2015~~73 days at ~~80 days.~~

March 27, 2016.

Inventories ~~decreased 18%~~increased 36% to ~~$403,789~~$461.7 million at ~~June 28, 2015~~March 27, 2016 from ~~$492,822~~$340.7 million at ~~June~~March 29, ~~2014.~~2015. The inventory balance at ~~June 28, 2015~~March 27, 2016 includes a decrease of approximately ~~$70,900~~$17.8 million resulting from a stronger U.S. dollar. Furthermore, approximately $19,700 of inventories were reclassified as assets held for sale related to the anticipated sale of the Company's manufacturing operations and are included in prepaid expenses and other current assets. Excluding these items, inventories at June 28, 2015 were flat compared to inventories at June 29, 2014.

Prepaid expenses and other current assets increased 12% to $434,145 at June 28, 2015 from $386,333 at June 29, 2014. The prepaid and other current assets balance at June 28, 2015 included a decrease of approximately $23,800 resulting from a stronger U.S. dollar at June 28, 2015 compared to June 29, 2014. Absent the impact of foreign currency translation, ~~prepaid~~inventories increased approximately 41% in support of 2016 initiatives, growth in the business, as well as the timing of entertainment in 2016.

Prepaid expenses and other current assets ~~increased approximately 19% compared~~decreased 15% to ~~June~~$295.8 million at March 27, 2016 from $346.7 million at March 29, ~~2014.~~2015. The majority of ~~increase~~decrease is due to lower prepaid royalties as well as a decrease in the ~~higher~~ value of foreign exchange contracts ~~due to a stronger U.S. dollar in 2015~~at 2016 compared to 2014. In addition to these contracts, prepaid expenses and other current assets includes approximately $19,700 in assets held for sale, primarily inventory, related to the anticipated sale of the Company's manufacturing operations as well as higher income tax receivables related to a December 2014 tax settlement in Mexico.2015. These ~~higher balances~~decreases were partially offset by ~~lower royalty advances.~~

higher balances related to income taxes at March 27, 2016.

Accounts payable and accrued liabilities ~~decreased 11%~~increased 16% to ~~$638,026~~$679.4 million at ~~June 28, 2015~~March 27, 2016 from ~~$715,504~~$585.2 million at ~~June~~March 29, ~~2014.~~2015. The ~~decrease reflects lower~~increase was primarily due to higher accrued royalties ~~accrued severance, foreign exchange contracts and~~at March 27, 2016 as advances made in 2015 were fully earned in that year. In addition, accounts ~~payable.~~

payable increased reflecting higher inventory purchases.

Goodwill and other intangible assets, net decreased to ~~$891,033~~$864.9 million at ~~June 28, 2015~~March 27, 2016 from ~~$945,025~~$904.3 million at ~~June~~March 29, ~~2014.~~2015. The decrease was due to amortization of intangible assets over the last twelve months.

Other assets decreased approximately 6%4% to ~~$708,334~~$734.5 million at ~~June 28, 2015~~March 27, 2016 from ~~$752,484~~$767.1 million at ~~June~~March 29, ~~2014. This~~2015. The decrease was primarily ~~reflects the partial sale~~related to a lower value of ~~the Company's television joint venture in the third quarter of 2014~~long-term foreign exchange contracts as well as lower long-term royalty advances. These ~~decreases~~ were partially offset by more favorable foreign exchange contracts as well as higher deferred tax assets reflecting increased pension liabilities in December 2014. Other assets at June 28, 2015 also includes approximately $26,400 in assets held for sale, primarily property, plant and equipment, net of accumulated depreciation,an increase due to a long-term note receivable related to the ~~anticipated~~ sale of the ~~Company's~~Company’s manufacturing ~~operations.~~

operations in August 2015.

Other liabilities increased ~~11%~~2% to ~~$395,417~~$402.3 million at ~~June 28, 2015~~March 27, 2016 from ~~$357,766~~$396.1 million at ~~June~~March 29, ~~2014.~~2015. The increase in ~~2015~~2016 compared to ~~2014~~2015 reflects higher uncertain tax positions partially offset by lower pension liabilities, primarily due to changes in actuarial assumptions, including ~~a lower~~higher discount rate and updated mortality tables. The increase in 2015 compared to 2014 reflects the September 2014 amendment to the Company's relationship with Discovery Communications, Inc. which resulted in a net increase to other liabilities of approximately $10,000 reflecting the fair value of the option agreement offset by a reduction in the related tax sharing agreement. These increases were partially offset by lower accruals for uncertain income tax positions at June 28, 2015 compared to June 29, 2014, reflecting the settlement of tax exams primarily related to Mexico.

rates.

Net cash utilized by investing activities was ~~$59,003~~$27.6 million in the first ~~half~~quarter of ~~2015~~2016 compared to ~~$52,664~~$33.1 million in the first ~~half~~quarter of ~~2014.~~2015. Additions to property, plant and equipment were ~~$67,709~~$31.2 million in ~~2015 compared to $51,636 in 2014. Increased capital expenditures reflect the Company's investment in tooling~~both 2016 and ~~information systems.~~2015. 2015 investing activity also includes ~~approximately $20,700 in capital and tax distributions from Discovery Family Channel partially offset by~~ a ~~$3,000~~$3 million capital contribution to a 50% joint venture with Guangdong Alpha Animation and Culture Co., ~~Ltd.~~Ltd while 2016 investing activity includes a $4.2 million distribution from the Discovery Family Channel joint venture.

Net cash utilized by financing activities was ~~$202,315~~$151.7 million in the first ~~half~~quarter of ~~2015~~2016 compared to ~~$154,147~~$82.5 million in the first ~~half~~quarter of ~~2014.~~2015. Cash payments related to purchases of the Company's common stock were ~~$49,156~~$33.7 million in the first ~~half~~quarter of ~~2015~~2016 compared to ~~$213,935~~$26.5 million in the first ~~half~~quarter of ~~2014.~~2015. At ~~June 28, 2015,~~March 27, 2016, the Company had ~~$517,340~~$443.5 million remaining available under its current share repurchase authorization approved by the Board of Directors. Dividends paid in the first ~~half~~quarter of ~~2015~~2016 totaled ~~$110,902~~$57.4 million compared to ~~$108,097~~$53.5 million in the first ~~half~~quarter of ~~2014.~~2015. Repayments of short-term borrowings ~~totaling $84,420~~were $75.5 million in the first ~~half~~quarter of ~~2015~~2016 compared to ~~proceeds from short-term borrowings of $1,430~~$20.3 million in the first ~~half~~quarter of 2014. The 2014 cash provided also reflects net proceeds of $559,986 from the issuance of $600,000 in long-term notes in May 2014; these net proceeds include a payment of $33,306 for the termination of forward-starting interest rate swap contracts associated with this expected issuance of debt as well as $6,708 in debt issuance costs. The majority of the proceeds from this issuance were used to repay $425,000 of long-term notes due May 2014.

2015.

The Company has an agreement with a group of banks for a commercial paper program (the "Program"). Under the Program, at the request of the Company and subject to market conditions, the banks may either purchase from the Company, or arrange for the sale by the Company, of unsecured commercial paper notes. Under the Program the Company may issue notes from time to time up to an aggregate principal amount outstanding at any given time of ~~$700,000.~~$700 million. The maturities of these notes will vary but may not exceed 397 days. The notes will be sold under customary terms in the commercial paper market and will be issued at a discount or par, or alternatively, will be sold at par and will bear varying interest rates based on a fixed or floating rate basis. The interest rates will vary based on market conditions and the ratings assigned to the notes by the credit rating agencies at the time of issuance. Subject to market conditions, the Company intends to utilize the Program as its primary short-term borrowing facility and does not intend to sell unsecured commercial paper notes in excess of the available amount under the revolving credit agreement, discussed below. If, for any reason, the Company is unable to access the commercial paper market, the Company intends to use the revolving credit agreement to meet the Company's short-term liquidity needs. At ~~June 28, 2015~~March 27, 2016 the Company had ~~approximately $166,000~~$89.0 million in borrowings outstanding related to the Program.

The Company has a revolving credit agreement (the "Agreement"), which provides it with a ~~$700,000~~$700 million committed borrowing facility. 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 as of and for the quarter ended ~~June 28, 2015.~~March 27, 2016. The Company had no borrowings outstanding under its committed revolving credit facility at ~~June 28, 2015.~~March 27, 2016. However, the Company had letters of credit outstanding under this facility as of ~~June 28, 2015~~March 27, 2016 of approximately ~~$900.~~$0.8 million and borrowings under the Company’s commercial paper program of approximately $89.0 million. Amounts available and unused under the committed line, less outstanding balances under the commercial paper program, as of ~~June 28, 2015~~March 27, 2016 were approximately ~~$533,100.~~$610.2 million. The Company also has other uncommitted lines from various banks, of which approximately ~~$21,600~~$33.2 million was utilized at ~~June 28, 2015. Of the amount utilized under the uncommitted lines, approximately $1,400 and $20,200 represent~~March 27, 2016, all of which represents outstanding ~~borrowings and~~ letters of ~~credit, respectively.~~

credit.

The Company has principal amounts of long-term debt at ~~June 28, 2015~~March 27, 2016 of ~~$1,559,895~~$1,559.9 million due at varying times from 2017 through 2044. The Company also had letters of credit and other similar instruments of approximately ~~$22,500~~$34.0 million and purchase commitments of approximately ~~$416,600~~$366.5 million outstanding at ~~June 28, 2015.~~

March 27, 2016.

Other contractual obligations and commercial commitments, as detailed in the Company's Annual Report on Form 10-K for the year ended December ~~28, 2014,~~27, 2015, did not materially change outside of payments made in the normal course of business and as otherwise set forth in this report. The table of contractual obligations and commercial commitments, as detailed in the Company's Annual Report on Form 10-K for the year ended December ~~28, 2014,~~27, 2015, does not include certain tax liabilities recorded related to uncertain tax positions. These liabilities were ~~$41,485~~$67.5 million at ~~June 28, 2015,~~March 27, 2016, and are included as a component of other liabilities in the accompanying consolidated balance sheets.

The Company believes that cash from operations, and, if necessary, its committed line of credit and other borrowing facilities, will allow the Company to meet these and other obligations listed.

CRITICAL ACCOUNTING POLICIES AND SIGNIFICANT ESTIMATES

The Company prepares its consolidated financial statements in accordance with accounting principles generally accepted in the United States of America. As such, management is required to make certain estimates, judgments and assumptions that it believes are reasonable based on the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses for the periods presented. The significant accounting policies which management believes are the most critical to aid in fully understanding and evaluating the Company's reported financial results include sales allowances, program production costs, recoverability of goodwill and intangible assets, recoverability of royalty advances and commitments, pension costs and obligations and income taxes. These critical accounting policies are the same as those detailed in the Annual Report on Form 10-K for the year ended December ~~28, 2014.~~

27, 2015.

FINANCIAL RISK MANAGEMENT

The Company is exposed to market risks attributable to fluctuations in foreign currency exchange rates, primarily as the result of sourcing products priced in U.S. dollars, Hong Kong dollars and Euros while marketing those products in more than twenty currencies. Results of operations may be affected primarily by changes in the value of the U.S. dollar, Hong Kong dollar, Euro, British pound sterling, Swiss franc, Canadian dollar, Brazilian real, Russian ruble and Mexican peso and, to a lesser extent, other currencies in European, Latin American and Asia Pacific countries.

To manage this exposure, the Company has hedged a portion of its forecasted foreign currency transactions for fiscal years 2015 through ~~2019~~2020 using foreign exchange forward contracts. The Company is also exposed to foreign currency risk with respect to its net cash and cash equivalents or short-term borrowing positions in currencies other than the U.S. dollar. The Company believes, however, that the on-going risk on the net exposure should not be material to its financial condition. In addition, the Company's revenues and costs have been, and will likely continue to be, affected by changes in foreign currency rates. A significant change in foreign exchange rates can materially impact the Company's revenues and earnings due to translation of foreign-denominated revenues and expenses. The Company does not hedge against translation impacts of foreign exchange. From time to time, affiliates of the Company may make or receive intercompany loans in currencies other than their functional currency. The Company manages this exposure at the time the loan is made by using foreign exchange contracts. Other than as set forth above, the Company does not hedge foreign currency exposures.

The Company reflects all forward contracts at their fair value as an asset or liability on the consolidated balance sheets. The Company does not speculate in foreign currency exchange contracts. At ~~June 28, 2015,~~March 27, 2016, these contracts had net unrealized gains of ~~$103,158,~~$65.8 million, of which ~~$51,974~~$46.9 million are recorded in prepaid expenses and other current assets, ~~$53,932~~$22.8 million are recorded in other assets, ~~$2,677~~$1.3 million are recorded in accrued liabilities and ~~$71~~$2.6 million are recorded in other liabilities. Included in accumulated other comprehensive loss at ~~June 28, 2015~~March 27, 2016 are deferred gains, net of tax, of ~~$98,835,~~$65.0 million, related to these derivatives.

At ~~June 28, 2015,~~March 27, 2016, the Company had fixed rate long-term debt of ~~$1,559,895.~~$1,559.9 million. Of this long-term debt, ~~$600,000~~$600 million represents the aggregate issuance of long-term debt in May 2014 which consisted of ~~$300,000~~$300 million of 3.15% Notes Due 2021 and ~~$300,000~~$300 million of 5.10% Notes Due 2044. The Company had forward-starting interest rate swap agreements with a total notional value of ~~$500,000~~$500 million related to the May 2014 issuance which hedged the anticipated underlying U.S. Treasury interest rate. These interest rate swaps were matched with this debt issuance and were designated and effective as hedges of the change in future interest payments. At the date of debt issuance, the Company terminated these interest rate swap agreements and their fair value was recorded in accumulated other comprehensive loss and is being amortized through the consolidated statements of operations using an effective interest rate method over the life of the related debt. Included in accumulated other comprehensive loss at ~~June 28, 2015~~March 27, 2016 are deferred losses, net of tax, of ~~$19,937~~$19.1 million related to these derivatives.

Item 3.

Quantitative and Qualitative Disclosures About Market Risk.

The information required by this item is included in Part I Item 2. "Management's Discussion and Analysis of Financial Condition and Results of Operations" and is incorporated herein by reference.

Item 4.

Controls and Procedures.

The Company maintains disclosure controls and procedures, as defined in Rule 13a-15(e) promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"), that are designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission's rules and forms and that such information is accumulated and communicated to the Company's management, including its Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. The Company carried out an evaluation, under the supervision and with the participation of the Company's management, including the Company's Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Company's disclosure controls and procedures as of ~~June 28, 2015.~~March 27, 2016. Based on the evaluation of these disclosure controls and procedures, the Chief Executive Officer and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective.

There were no changes in the Company's internal control over financial reporting, as defined in Rule 13a-15(f) promulgated under the Exchange Act, during the quarter ended ~~June 28, 2015~~March 27, 2016 that have materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1.

Legal Proceedings.

The Company is currently party to certain legal proceedings, none of which it believes to be material to its business or financial condition.

Item 1A.

Risk Factors.

This Quarterly Report on Form 10-Q contains "forward-looking statements," within the meaning of the Private Securities Litigation Reform Act of 1995, concerning management's expectations, goals, objectives, and similar matters. These forward-looking statements may include statements concerning the Company's product and entertainment plans, anticipated product and entertainment performance, business opportunities and strategies, financial and business goals, expectations for achieving the Company's financial and business goals, cost savings and efficiency enhancing initiatives and other objectives and anticipated uses of cash and may be identified by the use of forward-looking words or phrases such as "anticipate," "believe," "could," "expect," "intend," "look forward," "may," "planned," "potential," "should," "will," and "would" or any variations of words with similar meanings. These forward-looking statements are inherently subject to known and unknown risks and uncertainties.

The Company's actual results or experience may differ materially from those expected or anticipated in the forward-looking statements. The Company has included, under Item 1A. of its Annual Report on Form 10-K, for the year ended December ~~28, 2014~~27, 2015 (the "Annual Report"), a discussion of factors which may impact these forward-looking statements. In furtherance, and not in limitation, of the more detailed discussion set forth in the Annual Report, specific factors that might cause such a difference include, but are not limited to:

· the Company's ability to successfully re-imagine, re-invent and re-ignite its existing brands, products and product lines, including through the use of immersive entertainment experiences, to maintain and further their success;

· the Company's ability to successfully design, develop, produce, introduce, market and sell innovative new brands, products and product lines which achieve and sustain interest from retailers and consumers and keep pace with changes in consumer preferences and lifestyles;

· the Company's ability to offer products that (i) expand consumer demand for its product offerings and do not significantly compete with the Company's other existing product offerings and (ii) consumers want to purchase and select over competitors' products;

· the Company's ability to source and ship products in a timely and cost-effective manner and customers' and consumers' acceptance and purchase of those products in quantities and at prices that will be sufficient to profitably recover the Company's costs for developing, marketing and selling those products;

· recessions, other economic downturns or challenging economic conditions affecting the Company's markets which can negatively impact the financial health of the Company's retail customers and consumers, and which can result in lower employment levels, lower consumer disposable income and spending, including lower spending on purchases of the Company's products;

· potential difficulties or delays the Company may experience in implementing its cost savings and efficiency enhancing initiatives or the realization of fewer benefits than are expected from such initiatives;

· currency fluctuations, including movements in foreign exchange rates, which can lower the Company's net revenues and earnings, and significantly impact the Company's costs;

· other economic and public health conditions or regulatory changes in the markets in which the Company and its customers and suppliers operate, which could create delays or increase the Company's costs, such as higher commodity prices, labor costs or higher transportation costs or outbreaks of diseases;

· delays, increased costs or difficulties associated with the development and offering of our or our partners' planned digital applications or media initiatives based on the Company's brands;

· the concentration of the Company's retail customers, potentially increasing the negative impact to the Company of difficulties experienced by any of the Company's retail customers or changes in their purchasing or selling patterns;

· the Company's ability to generate sales during the fourth quarter, particularly during the relatively brief holiday shopping season, which is the period in which the Company derives a substantial portion of its revenues and earnings;

· the inventory policies of the Company's retail customers, including the retailers' potential decisions to lower their inventories, even if it results in lost sales, as well as the concentration of the Company's revenues in the second half and fourth quarter of the year, which coupled with reliance by retailers on quick response inventory management techniques, increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve compressed shipping schedules;

· work stoppages or disruptions which may impact the Company's ability to manufacture or deliver products in a timely and cost-effective manner;

· concentration of manufacturing of the substantial majority of the Company's products by third party vendors in the People's Republic of China and the associated impact to the Company of social, economic or public health conditions and other factors affecting China, the movement of people and products into and out of China, the cost of producing products in China and the cost of exporting them to the Company's other markets or affecting the exchange rates for the Chinese Renminbi, including, without limitation, the impact of tariffs or other trade restrictions being imposed upon goods manufactured in China;

· consumer interest in and acceptance of the Discovery Family channel, the Company's cable television joint venture with Discovery Communications, the programming appearing on Discovery Family, products related to Discovery Family's programming, and other factors impacting the financial performance of the Discovery Family channel;

· consumer interest in and acceptance of programming and entertainment created by Hasbro Studios and/or our other entertainment partners, as well as products related to such programming and entertainment;

· the ability to develop and distribute compelling entertainment, including television, motion pictures and digital content, based on our brands, in a timely and financially profitable manner, and the success of that entertainment in driving consumer interest in and engagement with our brands;

· the ability of the Company to hire and retain key officers and employees who are critical to the Company's success;

· the costs of complying with product safety and consumer protection requirements worldwide, including the risk that greater regulation in the future may increase such costs, may require changes in the Company's products and/or may impact the Company's ability to sell some products in particular markets in the absence of making changes to such products;

· the risk that one of the Company's third-party manufacturers will not comply with applicable labor, consumer protection, product safety or other laws or regulations, or with aspects of the Company's Global Business Ethics Principles, and that such noncompliance will not be promptly detected, either of which could cause damage to the Company's reputation, harm sales of its products, result in product recalls and potentially create other liabilities for the Company;

· an adverse change in purchasing policies or promotional programs or the bankruptcy or other economic difficulties or lack of success of one or more of the Company's significant retailers comprising its relatively concentrated retail customer base, which could negatively impact the Company's revenues or bad debt exposure;

· the risk that the market appeal of the Company's licensed products will be less than expected or that sales revenue generated by these products will be insufficient to cover the minimum guaranteed royalties or other commitments;

· the risk the Company will lose rights to a significant licensed property or properties, which will harm the Company's revenues and earnings;

· the risk that the Company may face product recalls or product liability suits relating to products it manufactures or distributes which may have significant direct costs to the Company and which may also harm the reputation of the Company and its products, potentially harming future product sales;

·	the Company's ability to successfully re-imagine, re-invent and re-ignite its existing brands, products and product lines, including through the use of immersive entertainment experiences, to maintain and further their success;

·	the Company's ability to successfully design, develop, produce, introduce, market and sell innovative new brands, products and product lines which achieve and sustain interest from retailers and consumers and keep pace with changes in consumer preferences and lifestyles;

·	the Company's ability to offer products that (i) expand consumer demand for its product offerings and do not significantly compete with the Company's other existing product offerings and (ii) consumers want to purchase and select over competitors' products;

the Company's ability to manufacture, source and ship products in a timely and cost-effective manner and customers' and consumers' acceptance and purchase of those products in quantities and at prices that will be sufficient to profitably recover the Company's costs for developing, marketing and selling those products;

recessions, other economic downturns or challenging economic conditions affecting the Company's markets which can negatively impact the financial health of the Company's retail customers and consumers, and which can result in lower employment levels, lower consumer disposable income and spending, including lower spending on purchases of the Company's products;

·	potential difficulties or delays the Company may experience in implementing its cost savings and efficiency enhancing initiatives or the realization of fewer benefits than are expected from such initiatives;

·	~~currency fluctuations, including movements in foreign exchange rates, which can lower the Company's net revenues and earnings, and significantly impact the Company's costs;~~

other economic and public health conditions or regulatory changes in the markets in which the Company and its customers and suppliers operate, which could create delays or increase the Company's costs, such as higher commodity prices, labor costs or higher transportation costs or outbreaks of diseases;

·	~~delays, increased costs or difficulties associated with the development and offering of our or our partners' planned digital applications or media initiatives based on the Company's brands;~~

·	the concentration of the Company's retail customers, potentially increasing the negative impact to the Company of difficulties experienced by any of the Company's retail customers or changes in their purchasing or selling patterns;

·	the Company's ability to generate sales during the fourth quarter, particularly during the relatively brief holiday shopping season, which is the period in which the Company derives a substantial portion of its revenues and earnings;

the inventory policies of the Company's retail customers, including the retailers' potential decisions to lower their inventories, even if it results in lost sales, as well as the concentration of the Company's revenues in the second half and fourth quarter of the year, which coupled with reliance by retailers on quick response inventory management techniques, increases the risk of underproduction of popular items, overproduction of less popular items and failure to achieve compressed shipping schedules;

·	~~work stoppages or disruptions which may impact the Company's ability to manufacture or deliver products in a timely and cost-effective manner;~~

concentration of manufacturing of the substantial majority of the Company's products by third party vendors in the People's Republic of China and the associated impact to the Company of social, economic or public health conditions and other factors affecting China, the movement of people and products into and out of China, the cost of producing products in China and the cost of exporting them to the Company's other markets or affecting the exchange rates for the Chinese Renminbi, including, without limitation, the impact of tariffs or other trade restrictions being imposed upon goods manufactured in China;

consumer interest in and acceptance of Discovery Family, the Company's cable television joint venture with Discovery Communications, the programming appearing on Discovery Family, products related to Discovery Family's programming, and other factors impacting the financial performance of the Discovery Family channel;

·	consumer interest in and acceptance of programming and entertainment created by Hasbro Studios and/or our other entertainment partners, as well as products related to such programming and entertainment;

·	the ability to develop and distribute compelling entertainment, including television, motion pictures and digital content, based on our brands, in a timely and financially profitable manner, and the success of that entertainment in driving consumer interest in and engagement with our brands;

·	~~the ability of the Company to hire and retain key officers and employees who are critical to the Company's success;~~

the costs of complying with product safety and consumer protection requirements worldwide, including the risk that greater regulation in the future may increase such costs, may require changes in the Company's products and/or may impact the Company's ability to sell some products in particular markets in the absence of making changes to such products;

the risk that one of the Company's third-party manufacturers will not comply with applicable labor, consumer protection, product safety or other laws or regulations, or with aspects of the Company's Global Business Ethics Principles, and that such noncompliance will not be promptly detected, either of which could cause damage to the Company's reputation, harm sales of its products and potentially create liability for the Company;

an adverse change in purchasing policies or promotional programs or the bankruptcy or other economic difficulties or lack of success of one or more of the Company's significant retailers comprising its relatively concentrated retail customer base, which could negatively impact the Company's revenues or bad debt exposure;

·	the risk that the market appeal of the Company's licensed products will be less than expected or that sales revenue generated by these products will be insufficient to cover the minimum guaranteed royalties;

·	~~the risk the Company will lose rights to a significant licensed property or properties, which will harm the Company's revenues and earnings;~~

·	the risk that the Company may face product recalls or product liability suits relating to products it manufactures or distributes which may have significant direct costs to the Company and which may also harm the reputation of the Company and its products, potentially harming future product sales;

the impact of competition on revenues, margins and other aspects of the Company's business, including the ability to offer Company products which consumers choose to buy instead of competitor products, the ability to secure, maintain and renew popular licenses and the ability to attract and retain employees;

·	~~the risk that anticipated benefits of acquisitions may not occur or be delayed or reduced in their realization;~~

·	~~the Company's ability to obtain and enforce intellectual property rights both in the United States and other worldwide territories;~~

·	the risk that any litigation or arbitration disputes or government and regulatory investigations could entail significant resources and expense and result in significant fines or other harm to the Company's business or reputation;

·	~~the Company's ability to maintain or obtain external financing on terms acceptable to it in order to meet working capital needs;~~

·	the risk that one or more of the counterparties to the Company's financing arrangements may experience financial difficulties or otherwise be unable or unwilling to allow the Company to access financing under such arrangements;

·	~~the Company's ability to generate sufficient available cash flow to service its outstanding debt;~~

·	~~restrictions that the Company is subject to under its credit agreement;~~

unforeseen circumstances, such as severe softness in or collapse of the retail environment that may result in a significant decline in revenues and operating results of the Company, thereby causing the Company to be in non-compliance with its debt covenants and the Company being unable to utilize borrowings under its revolving credit facility, a circumstance likely to occur when operating shortfalls would result in the Company being in the greatest need of such supplementary borrowings;

·	market conditions, third party actions or approvals, the impact of competition and other factors that could delay or increase the cost of implementation of the Company's programs, or alter the Company's actions and reduce actual results;

the risk that the Company may be subject to governmental penalties, fines, sanctions or additional taxes for failure to comply with applicable laws or regulations in any of the markets in which it operates, or that governmental regulations or requirements will require changes in the manner in which the company does business and/or increase the costs of doing business;

·	~~failure to operate our information systems and implement new technology effectively, as well as maintain the systems and processes designed to protect our electronic data;~~

·	~~the risk that the Company's reported goodwill may become impaired, requiring the Company to take a charge against its income; or~~

·	~~other risks and uncertainties as are or may be detailed from time to time in the Company's public announcements and filings with the SEC, such as filings on Forms 8-K, 10-Q and 10-K.~~

· the impact of competition on revenues, margins and other aspects of the Company's business, including the ability to offer Company products which consumers choose to buy instead of competitor products, the ability to secure, maintain and renew popular licenses and the ability to attract and retain employees;

· the risk that anticipated benefits of acquisitions may not occur or be delayed or reduced in their realization;

· the Company's ability to obtain and enforce intellectual property rights both in the United States and other worldwide territories;

· the risk that any litigation or arbitration disputes or government and regulatory investigations could entail significant resources and expense and result in significant fines or other harm to the Company's business or reputation;

· the Company's ability to maintain or obtain external financing on terms acceptable to it in order to meet working capital needs;

· the risk that one or more of the counterparties to the Company's financing arrangements may experience financial difficulties or otherwise be unable or unwilling to allow the Company to access financing under such arrangements;

· the Company's ability to generate sufficient available cash flow to service its outstanding debt;

· restrictions that the Company is subject to under its credit agreement;

· unforeseen circumstances, such as severe softness in or collapse of the retail environment that may result in a significant decline in revenues and operating results of the Company, thereby causing the Company to be in non-compliance with its debt covenants and the Company being unable to utilize borrowings under its revolving credit facility, a circumstance likely to occur when operating shortfalls would result in the Company being in the greatest need of such supplementary borrowings;

· market conditions, third party actions or approvals, the impact of competition and other factors that could delay or increase the cost of implementation of the Company's programs, or alter the Company's actions and reduce actual results;

· the risk that the Company may be subject to governmental penalties, fines, sanctions or additional taxes for failure to comply with applicable laws or regulations in any of the markets in which it operates, or that governmental regulations or requirements will require changes in the manner in which the company does business and/or increase the costs of doing business;

· failure to operate our information systems and implement new technology effectively, as well as maintain the systems and processes designed to protect our electronic data;

· the risk that the Company's reported goodwill may become impaired, requiring the Company to take a charge against its income; or

· other risks and uncertainties as are or may be detailed from time to time in the Company's public announcements and filings with the SEC, such as filings on Forms 8-K, 10-Q and 10-K.

The Company undertakes no obligation to revise the forward-looking statements contained in this Quarterly Report on Form 10-Q to reflect events or circumstances occurring after the date of the filing of this report.

Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds.

Repurchases Made in the Quarter (in whole dollars and number of shares)

							(d)
							Maximum
							Number (or
					(c) Total		Approximate
					Number of		Dollar
					Shares (or		Value) of
					Units)		Shares (or
					Purchased		Units) that
	(a) Total		(b)		as Part of		May Yet Be
	Number of		Average		Publicly		Purchased
	Shares (or		Price Paid		Announced		Under the
Period	Units)		per Share		Plans or		Plans or
	Purchased		(or Unit)		Programs		Programs
January 2016
12/28/15 – 1/24/16		-	$	-		-	$	479,282,560
February 2016
1/25/16 – 2/28/16		228,000	$	73.35		228,000	$	462,761,849
March 2016
2/29/16 – 3/27/16		247,000	$	78.13		247,000	$	443,463,712
Total		475,000	$	75.41		475,000	$	443,463,712

Period

(a) Total Number of Shares (or Units) Purchased (b) Average Price Paid per Share (or Unit) (c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs (d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
April 2015
3/30/15 – 4/26/15
100,365 $ 63.83 100,365 $ 532,552,527
May 2015
4/27/15 – 5/31/15
120,000 $ 71.52 120,000 $ 523,970,018
June 2015
6/1/15 – 6/28/15
91,100 $ 72.77 91,100 $ 517,340,236
Total 311,465 $ 69.41 311,465 $ 517,340,236

~~On August 1, 2013, the Company announced that its Board of Directors authorized the repurchase of a $500 million in common stock. On~~

In February 9, 2015, the Company announced that its Board of Directors authorized the repurchase of an additional $500 million in common stock. Purchases of the Company's common stock may be made from time to time, subject to market conditions. These shares may be repurchased in the open market or through privately negotiated transactions. The Company has no obligation to repurchase shares under this authorization, and the timing, actual number, and value of the shares that are repurchased will depend on a number of factors, including the price of the Company's stock. The Company may suspend or discontinue the program at any time and there is no expiration date.

Item 3.

Defaults Upon Senior Securities.

None.

~~None.~~

Item 4.

Mine Safety Disclosures.

Not applicable.

Item 5.

Other Information.

None.

~~None.~~

Item 6.

Exhibits.

3.1 Restated Articles of Incorporation of the Company. (Incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)

3.2 Amendment to Articles of Incorporation, dated June 28, 2000. (Incorporated by reference to Exhibit 3.4 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)

3.3 Amendment to Articles of Incorporation, dated May 19, 2003. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q for the period ended June 29, 2003, File No. 1-6682.)

3.4 Amended and Restated Bylaws of the Company, as amended. (Incorporated by reference to Exhibit 3(d) to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006, File No. 1-6682.)

3.5 Amendment to Amended and Restated Bylaws of the Company, as amended. (Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K dated August 6, 2014, File No. 1-6682.)

3.6 Amendment to Amended and Restated Bylaws of the Company, as amended. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated October 5, 2015, File No. 1-6682.)

3.7 Amendment to Amended and Restated Bylaws of the Company, as amended. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated December 10, 2015, File No. 1-6682.)

3.8 Certificate of Designations of Series C Junior Participating Preference Stock of Hasbro, Inc. dated June 29, 1999. (Incorporated by reference to Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)

3.9 Certificate of Vote(s) authorizing a decrease of class or series of any class of shares. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No 1-6682.)

4.1 Indenture, dated as of July 17, 1998, by and between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to Citibank, N.A. as Trustee. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated July 14, 1998, File No. 1-6682.)

4.2 Indenture, dated as of March 15, 2000, by and between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4(b)(i) to the Company's Annual Report on Form 10-K for the fiscal year ended December 26, 1999, File No. 1-6682.)

4.3 First Supplemental Indenture, dated as of September 17, 2007, between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed September 17, 2007, File No. 1-6682.)

4.4 Second Supplemental Indenture, dated as of May 13, 2009, between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 13, 2009, File No. 1-6682.)

4.5 Third Supplemental Indenture, dated as of March 11, 2010, between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed March 11, 2010, File No. 1-6682.)

4.6 Fourth Supplemental Indenture, dated May 13, 2014, between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 13, 2014, file No. 1-6682.)

10.1 Form of 2016 Fair Market Value Stock Option Agreement under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan. (Applicable for Duncan Billing, John Frascotti, Wiebe Tinga, Deborah Thomas and certain other employees of the Company.)

10.2 Form of 2016 Fair Market Value Stock Option Agreement for Brian Goldner under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan.

10.3 Form of 2016 Contingent Stock Performance Award under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan. (Applicable to Duncan Billing, John Frascotti, Wiebe Tinga, Deborah Thomas and certain other employees of the Company.)

10.4 Form of 2016 Contingent Stock Performance Award for Brian Goldner under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan.

10.5 Form of 2016 Restricted Stock Unit Agreement under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan. (Applicable to Duncan Billing, John Frascotti, Wiebe Tinga, Deborah Thomas and certain other employees of the Company.)

10.6 Form of 2016 Non-Competition, Non-Solicitation and Confidentiality Agreement. (Applicable to Duncan Billing, John Frascotti, Wiebe Tinga, Deborah Thomas and certain other employees of the Company.)

31.1 Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.2 Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

31.1* Certification of the Chief Executive Officer Pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934.

31.2* Certification of the Chief Financial Officer Pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934.

101.INS XBRL Instance Document

101.SCH Taxonomy Extension Schema Document

101.CAL XBRL Taxonomy Extension Calculation Linkbase Document

101.LAB XBRL Taxonomy Extension Labels Linkbase Document

101.PRE XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF XBRL Taxonomy Extension Definition Linkbase Document

* Furnished herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	~~3.1~~ HASBRO, INC.
	(Registrant)

Date: May 4, 2016	By: /s/ Deborah Thomas
	Deborah Thomas

	Executive Vice President and
	Chief Financial Officer
	(Duly Authorized Officer and
	Principal Financial Officer)

Exhibit Index

Exhibit
No.	Exhibits

3.1	Restated Articles of Incorporation of the Company. (Incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)


3.2	Amendment to Articles of Incorporation, dated June 28, 2000. (Incorporated by reference to Exhibit 3.4 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)


3.3	Amendment to Articles of Incorporation, dated May 19, 2003. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q for the period ended June 29, 2003, File No. 1-6682.)


3.4	Amended and Restated Bylaws of the Company, as amended. (Incorporated by reference to Exhibit 3(d) to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006, File No. 1-6682.)


3.5	~~Amendment to~~ Amended and Restated Bylaws of the Company, as amended. (Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K dated August 6, 2014, File No. 1-6682)

3.6	Amendment to Amended and Restated Bylaws of the Company, as amended. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated October 5, 2015, File No. 1-6682.)

~~3.6~~

3.7

Amendment to Amended and Restated Bylaws of the Company, as amended. (Incorporated by reference to Exhibit 3.1 to the Company’s Current Report on Form 8-K dated December 10, 2015, File No. 1-6682.)

3.8

Certificate of Designations of Series C Junior Participating Preference Stock of Hasbro, Inc. dated June 29, 1999. (Incorporated by reference to Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)

4.1

~~3.7~~

Certificate of Vote(s) authorizing a decrease of class or series of any class of shares. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No 1-6682.)

~~4.1~~

Indenture, dated as of July 17, 1998, by and between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to Citibank, N.A. as Trustee. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated July 14, 1998, File No. 1-6682.)

~~4.2~~

Indenture, dated as of March 15, 2000, by and between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4(b)(i) to the Company's Annual Report on Form 10-K for the fiscal year ended December 26, 1999, File No. 1-6682.)

~~4.3~~

First Supplemental Indenture, dated as of September 17, 2007, between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed September 17, 2007, File No. 1-6682.)

~~4.4~~

Second Supplemental Indenture, dated as of May 13, 2009, between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 13, 2009, File No. 1-6682.)

~~4.5~~

Third Supplemental Indenture, dated as of March 11, 2010, between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed March 11, 2010, File No. 1-6682.)

~~4.6~~

Fourth Supplemental Indenture, dated May 13, 2014, between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 13, 2014, file No. 1-6682.)

~~31.1~~

~~Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.~~

~~31.2~~

~~Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.~~

31.1*

~~Certification of the Chief Executive Officer Pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934.~~

31.2*

~~Certification of the Chief Financial Officer Pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934.~~

~~101.INS~~

~~XBRL Instance Document~~

~~101.SCH~~

~~Taxonomy Extension Schema Document~~

~~101.SCH~~

~~Taxonomy Extension Schema Document~~

~~101.CAL~~

~~XBRL Taxonomy Extension Calculation Linkbase Document~~

~~101.LAB~~

~~XBRL Taxonomy Extension Labels Linkbase Document~~

~~101.PRE~~

~~XBRL Taxonomy Extension Presentation Linkbase Document~~

~~101.DEF~~

~~XBRL Taxonomy Extension Definition Linkbase Document~~

* Furnished herewith.

~~SIGNATURES~~

~~Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.~~

	~~HASBRO, INC.~~
	~~(Registrant)~~

~~Date: July 29, 2015~~ 4.2	~~By: /s/ Deborah Thomas~~
	~~Deborah Thomas~~

	~~Executive Vice President and~~
	~~Chief Financial Officer~~
	~~(Duly Authorized Officer and~~
	~~Principal Financial Officer)~~

~~Exhibit Index~~

~~Exhibit~~
~~No.~~	~~Exhibits~~

~~3.1~~	~~Restated Articles of Incorporation of the Company. (Incorporated by reference to Exhibit 3.1 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)~~

~~3.2~~	Amendment to Articles of Incorporation, dated June 28, 2000. (Incorporated by reference to Exhibit 3.4 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)

~~3.3~~	Amendment to Articles of Incorporation, dated May 19, 2003. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q for the period ended June 29, 2003, File No. 1-6682.)

~~3.4~~	Amended and Restated Bylaws of the Company, as amended. (Incorporated by reference to Exhibit 3(d) to the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2006, File No. 1-6682.)

~~3.5~~	~~Amended and Restated Bylaws of the Company, as amended. (Incorporated by reference to Exhibit 3.1 to the Company's Current Report on Form 8-K dated August 6, 2014, File No. 1-6682).~~
~~3.6~~	Certificate of Designations of Series C Junior Participating Preference Stock of Hasbro, Inc. dated June 29, 1999. (Incorporated by reference to Exhibit 3.2 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No. 1-6682.)
~~3.7~~	Certificate of Vote(s) authorizing a decrease of class or series of any class of shares. (Incorporated by reference to Exhibit 3.3 to the Company's Quarterly Report on Form 10-Q for the period ended July 2, 2000, File No 1-6682.)
~~4.1~~	Indenture, dated as of July 17, 1998, by and between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to Citibank, N.A. as Trustee. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K dated July 14, 1998, File No. 1-6682.)

~~4.2~~	Indenture, dated as of March 15, 2000, by and between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4(b)(i) to the Company's Annual Report on Form 10-K for the year ended December 26, 1999, File No. 1-6682.)

4.3	First Supplemental Indenture, dated as of September 17, 2007, between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed September 17, 2007, File No. 1-6682.)
~~4.4~~
4.4	Second Supplemental Indenture, dated as of May 13, 2009, between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 13, 2009, File No. 1-6682.)

4.5	Third Supplemental Indenture, dated as of March 11, 2010, between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed March 11, 2010, File No. 1-6682.)

4.6	Fourth Supplemental Indenture, dated May 13, 2014, between the Company and The Bank of New York Mellon Trust Company, N.A. as successor Trustee to the Bank of Nova Scotia Trust Company of New York. (Incorporated by reference to Exhibit 4.1 to the Company's Current Report on Form 8-K filed May 13, 2014, file No. 1-6682.)

~~31.1~~ 10.1	Form of 2016 Fair Market Value Stock Option Agreement under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan. (Applicable for Duncan Billing, John Frascotti, Wiebe Tinga, Deborah Thomas and certain other employees of the Company.)

10.2	Form of 2016 Fair Market Value Stock Option Agreement for Brian Goldner under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan.

10.3	Form of 2016 Contingent Stock Performance Award under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan. (Applicable to Duncan Billing, John Frascotti, Wiebe Tinga, Deborah Thomas and certain other employees of the Company.)
10.4	Form of 2016 Contingent Stock Performance Award for Brian Goldner under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan.

10.5	Form of 2016 Restricted Stock Unit Agreement under the Hasbro, Inc. Restated 2003 Stock Incentive Performance Plan. (Applicable to Duncan Billing, John Frascotti, Wiebe Tinga, Deborah Thomas and certain other employees of the Company.)

10.6	Form of 2016 Non-Competition, Non-Solicitation and Confidentiality Agreement. (Applicable to Duncan Billing, John Frascotti, Wiebe Tinga, Deborah Thomas and certain other employees of the Company.)

31.1	Certification of the Chief Executive Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.
31.2
~~31.2~~	Certification of the Chief Financial Officer Pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934.

32.1*	Certification of the Chief Executive Officer Pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934.

32.2*	Certification of the Chief Financial Officer Pursuant to Rule 13a-14(b) under the Securities Exchange Act of 1934.

101.INS	XBRL Instance Document

101.SCH	XBRL Taxonomy Extension Schema Document

101.CAL	XBRL Taxonomy Calculation Linkbase Document

101.LAB	XBRL Taxonomy Extension Labels Linkbase Document

101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

101.DEF	XBRL Taxonomy Extension Definition Linkbase Document

	* Furnished herewith.

Rhode Island	05-0155090
(State of Incorporation)	(I.R.S. Employer Identification No.)

Large accelerated filer R [x]	Accelerated filer ☐ [ ]
Non-accelerated filer (Do not check if a smaller reporting company) ☐ [ ]	Smaller reporting Company ☐ [ ]

HASBRO, INC. AND SUBSIDIARIES
Consolidated Statements of Operations
(Thousands of Dollars Except Per Share Data)
(Unaudited)

			Quarter Ended
			March 27,		March 29,
			2016		2015
Net revenues			$	831,180		713,500
Costs and expenses:
	Cost of sales			290,240		247,735
	Royalties			69,969		59,089
	Product development			57,164		51,897
	Advertising			79,859		67,742
	Amortization of intangibles			8,691		12,951
	Program production cost amortization			6,186		11,096
	Selling, distribution and administration			233,155		208,785
		Total costs and expenses		745,264		659,295
Operating profit				85,916		54,205
Non-operating (income) expense:
	Interest expense			24,044		24,585
	Interest income			(2,213)		(930)
	Other (income) expense, net			4,872		(3,765)
		Total non-operating expense, net		26,703		19,890
Earnings before income taxes				59,213		34,315
Income tax expense				12,242		8,494
Net earnings				46,971		25,821
Net loss attributable to noncontrolling interests				(1,780)		(846)
Net earnings attributable to Hasbro, Inc.			$	48,751		26,667


Net earnings attributable to Hasbro, Inc. per common share:
	Basic		$	0.39		0.21
	Diluted		$	0.38		0.21
Cash dividends declared per common share			$	0.51		0.46

See accompanying condensed notes to consolidated financial statements.

HASBRO, INC. AND SUBSIDIARIES
Consolidated Statements of Comprehensive Earnings
(Thousands of Dollars)
(Unaudited)

			Quarter Ended
			March 27,		March 29,
			2016		2015
Net earnings			$	46,971		25,821
Other comprehensive earnings (loss):
	Foreign currency translation adjustments			12,140		(47,311)
	Net (losses) gains on cash flow hedging activities, net of tax			(15,786)		62,300
	Unrealized holding gains on available-for-sale securities,
		net of tax		1,680		226
	Reclassifications to earnings, net of tax:
		Net gains on cash flow hedging activities		(17,561)		(7,961)
		Unrecognized pension and postretirement amounts		1,175		1,204
Total other comprehensive earnings (loss), net of tax				(18,352)		8,458
Comprehensive earnings				28,619		34,279
Comprehensive loss attributable to noncontrolling interests				(1,780)		(846)
Comprehensive earnings attributable to Hasbro, Inc.			$	30,399		35,125

See accompanying condensed notes to consolidated financial statements.

HASBRO, INC. AND SUBSIDIARIES
Consolidated Statements of Cash Flows
(Thousands of Dollars)
(Unaudited)

				Three Months Ended
				March 27,		March 29,
				2016		2015
Cash flows from operating activities:
	Net earnings			$	46,971		25,821
	Adjustments to reconcile net earnings to net cash provided by operating activities:
		Depreciation of plant and equipment			25,126		21,404
		Amortization of intangibles			8,691		12,951
		Program production cost amortization			6,186		11,096
		Deferred income taxes			9,466		(3,406)
		Stock-based compensation			11,973		9,624
Change in operating assets and liabilities:
		Decrease in accounts receivable			547,154		478,330
		Increase in inventories			(73,238)		(20,309)
		Increase in prepaid expenses and other current assets			(32,032)		(6,319)
		Program production costs			(11,619)		(9,252)
		Decrease in accounts payable and accrued liabilities			(238,127)		(206,030)
		Other			(6,928)		1,371
			Net cash provided by operating activities		293,623		315,281
Cash flows from investing activities:
		Additions to property, plant and equipment			(31,218)		(31,151)
		Other			3,626		(1,960)
			Net cash utilized by investing activities		(27,592)		(33,111)
Cash flows from financing activities:
		Net repayments of other short-term borrowings			(75,526)		(20,325)
		Purchases of common stock			(33,710)		(26,507)
		Stock option transactions			8,153		14,023
		Excess tax benefits from stock-based compensation			6,056		3,440
		Dividends paid			(57,406)		(53,470)
		Other		��	762		350
			Net cash utilized by financing activities		(151,671)		(82,489)
Effect of exchange rate changes on cash					4,770		(11,451)
Increase in cash and cash equivalents					119,130		188,230
Cash and cash equivalents at beginning of year					976,750		893,167
Cash and cash equivalents at end of period				$	1,095,880		1,081,397

Supplemental information
	Cash paid during the period for:
		Interest		$	31,066		30,940
		Income taxes		$	34,332		28,292

See accompanying condensed notes to consolidated financial statements.

	2016				2015
Quarter	Basic		Diluted		Basic		Diluted
Net earnings attributable to Hasbro, Inc.	$	48,751		48,751		26,667		26,667

Average shares outstanding		125,266		125,266		124,853		124,853
Effect of dilutive securities:
Options and other share-based awards		-		1,682		-		1,489
Equivalent Shares		125,266		126,948		124,853		126,342

Net earnings attributable to Hasbro, Inc. per common share	$	0.39		0.38		0.21		0.21

					Unrealized
					Holding				Total
			Gains		Gains on		Foreign		Accumulated
	Pension and		(Losses) on		Available-		Currency		Other
	Postretirement		Derivative		for-Sale		Translation		Comprehensive
	Amounts		Instruments		Securities		Adjustments		Earnings (Loss)
2016
Balance at December 27, 2015	$	(102,931)		79,317		1,258		(123,645)		(146,001)
Current period other comprehensive earnings (loss)		1,175		(33,347)		1,680		12,140		(18,352)
Balance at March 27, 2016	$	(101,756)		45,970		2,938		(111,505)		(164,353)

2015
Balance at December 27, 2014	$	(113,092)		43,689		1,900		(27,951)		(95,454)
Current period other comprehensive earnings (loss)		1,204		54,339		226		(47,311)		8,458
Balance at March 29, 2015	$	(111,888)		98,028		2,126		(75,262)		(86,996)

	March 27, 2016				March 29, 2015				December 27, 2015
	Carrying		Fair		Carrying		Fair		Carrying		Fair
	Cost		Value		Cost		Value		Cost		Value
6.35% Notes Due 2040	$	500,000		560,900		500,000		597,900		500,000		556,300
6.30% Notes Due 2017		350,000		370,965		350,000		389,305		350,000		374,045
5.10% Notes Due 2044		300,000		287,610		300,000		316,260		300,000		286,710
3.15% Notes Due 2021		300,000		302,880		300,000		308,970		300,000		300,060
6.60% Debentures Due 2028		109,895		122,456		109,895		131,039		109,895		121,269
Total long-term debt	$	1,559,895		1,644,811		1,559,895		1,743,474		1,559,895		1,638,384
Less: Deferred debt expenses		12,461		-		13,726		-		12,780		-
Long-term debt	$	1,547,434		1,644,811		1,546,169		1,743,474		1,547,115		1,638,384

	Fair Value Measurements Using:
			Quoted
			Prices in
			Active
			Markets		Significant
			for		Other		Significant
			Identical		Observable		Unobservable
	Fair		Assets		Inputs		Inputs
	Value		(Level 1)		(Level 2)		(Level 3)
March 27, 2016
Assets:
Available-for-sale securities	$	6,109		6,109		-		-
Derivatives		69,720		-		69,720		-
Total assets	$	75,829		6,109		69,720		-

Liabilities:
Derivatives	$	3,932		-		3,932		-
Option agreement		27,920		-		-		27,920
Total liabilities	$	31,852		-		3,932		27,920

March 29, 2015
Assets:
Available-for-sale securities	$	4,836		4,836		-		-
Derivatives		130,550		-		130,550		-
Total assets	$	135,386		4,836		130,550		-

Liabilities:
Derivatives	$	3,513		-		3,513		-
Option agreement		24,920		-		-		24,920
Total liabilities	$	28,433		-		3,513		24,920

December 27, 2015
Assets:
Available-for-sale securities	$	3,476		3,476		-		-
Derivatives		107,634		-		107,634		-
Total assets	$	111,110		3,476		107,634		-

Liabilities:
Derivatives	$	1,240		-		1,240		-
Option agreement		28,360		-		-		28,360
Total Liabilities	$	29,600		-		1,240		28,360

	2016		2015
Balance at beginning of year	$	(28,360)		(25,340)
Gain from change in fair value		440		420
Balance at end of first quarter	$	(27,920)		(24,920)

	Quarter Ended
	Pension				Postretirement
	March 27,		March 29,		March 27,		March 29,
	2016		2015		2016		2015
Service cost	$	998		1,011		132		150
Interest cost		4,606		4,605		294		285
Expected return on assets		(5,507)		(5,479)		-		-
Net amortization and deferrals		2,132		2,201		-		(114)
Net periodic benefit cost	$	2,229		2,338		426		321

	Quarter Ended						Six Months Ended
	June 28, 2015			June 29, 2014			June 28, 2015			June 29, 2014
Net revenues	$	797,658			829,262			1,511,158			1,508,715
Costs and expenses:
Cost of sales		295,399			320,336			543,134			578,881
Royalties		57,069			70,533			116,158			120,114
Product development		57,609			51,707			109,506			98,964
Advertising		78,365			81,693			146,107			148,952
Amortization of intangibles		13,348			11,892			26,299			25,294
Program production cost amortization		7,220			6,710			18,316			11,368
Selling, distribution and administration		213,148			203,827			421,933			399,130
Total costs and expenses		722,158			746,698			1,381,453			1,382,703
Operating profit		75,500			82,564			129,705			126,012
Non-operating (income) expense:
Interest expense		24,186			22,802			48,771			45,230
Interest income		(690	)		(1,165	)		(1,620	)		(2,491	)
Other income, net		(1,642	)		(3,590	)		(5,407	)		(7,239	)
Total non-operating expense, net		21,854			18,047			41,744			35,500
Earnings before income taxes		53,646			64,517			87,961			90,512
Income tax expense		13,364			31,697			21,858			26,178
Net earnings		40,282			32,820			66,103			64,334
Net loss attributable to noncontrolling interests		(1,527	)		(655	)		(2,373	)		(1,228	)
Net earnings attributable to Hasbro, Inc.	$	41,809			33,475			68,476			65,562


Net earnings attributable to Hasbro, Inc. per common share:
Basic	$	0.33			0.26			0.55			0.50
Diluted	$	0.33			0.26			0.54			0.50
Cash dividends declared per common share	$	0.46			0.43			0.92			0.86

	2015				2014
Quarter	Basic		Diluted		Basic		Diluted
Net earnings attributable to Hasbro, Inc.	$	41,809		41,809		33,475		33,475

Average shares outstanding		125,093		125,093		129,381		129,381
Effect of dilutive securities:
Options and other share-based awards		-		1,713		-		1,549
Equivalent Shares		125,093		126,806		129,381		130,930

Net earnings attributable to Hasbro, Inc. per common share	$	0.33		0.33		0.26		0.26

	2015				2014
Six Months	Basic		Diluted		Basic		Diluted
Net earnings attributable to Hasbro, Inc.	$	68,476		68,476		65,562		65,562

Average shares outstanding		124,973		124,973		130,306		130,306
Effect of dilutive securities:
Options and other share-based awards		-		1,601		-		1,525
Equivalent Shares		124,973		126,574		130,306		131,831

Net earnings attributable to Hasbro, Inc. per common share	$	0.55		0.54		0.50		0.50

	Pension and Postretirement Amounts			Gains (Losses) on Derivative Instruments			Unrealized Holding Gains on Available-for-Sale Securities		Foreign Currency Translation Adjustments			Total Accumulated Other Comprehensive Loss
2015
Balance at Dec. 28, 2014	$	(113,092	)		43,689			1,900		(27,951	)		(95,454	)
Current period other comprehensive earnings (loss)		2,497			35,209			941		(46,669	)		(8,022	)
Balance at June 28, 2015	$	(110,595	)		78,898			2,841		(74,620	)		(103,476	)

2014
Balance at Dec. 29, 2013	$	(64,841	)		(7,313	)		-		38,019			(34,135	)
Current period other comprehensive earnings (loss)		1,100			(26,316	)		3,525		4,042			(17,649	)
Balance at June 29, 2014	$	(63,741	)		(33,629	)		3,525		42,061			(51,784	)

	March 27, 2016				March 29, 2015				December 27, 2015
	Notional		Fair		Notional		Fair		Notional		Fair
Hedged transaction	Amount		Value		Amount		Value		Amount		Value
Inventory purchases	$	1,277,977		69,748		912,376		135,512		1,380,488		108,521
Sales		82,072		258		232,643		(6,769)		97,350		803
Royalties and Other		270,207		(4,077)		84,518		(2,766)		54,360		(1,886)
Total	$	1,630,256		65,929		1,229,537		125,977		1,532,198		107,438

	June 28, 2015				June 29, 2014				December 28, 2014
	Carrying Cost		Fair Value		Carrying Cost		Fair Value		Carrying Cost		Fair Value
6.35% Notes Due 2040	$	500,000		557,450		500,000		587,350		500,000		617,700
6.30% Notes Due 2017		350,000		382,235		350,000		396,725		350,000		387,660
5.10% Notes Due 2044		300,000		287,010		300,000		307,950		300,000		316,980
3.15% Notes Due 2021		300,000		301,800		300,000		300,330		300,000		302,700
6.60% Debentures Due 2028		109,895		121,115		109,895		124,687		109,895		128,698
Total long-term debt	$	1,559,895		1,649,610		1,559,895		1,717,042		1,559,895		1,753,738

			Fair Value Measurements Using:
	Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
June 28, 2015
Assets:
Available-for-sale securities	$	38,725		5,959		21,777		10,989
Derivatives		105,906		-		105,906		-
Total assets	$	144,631		5,959		127,683		10,989

Liabilities:
Derivatives	$	2,748		-		2,748		-
Option agreement		25,190		-		-		25,190
Total liabilities	$	27,938		-		2,748		25,190

June 29, 2014
Assets:
Available-for-sale securities	$	40,712		7,183		27,912		5,617
Derivatives		533		-		533		-
Total assets	$	41,245		7,183		28,445		5,617

Liabilities:
Derivatives	$	16,131		-		16,131		-



December 28, 2014
Assets:
Available-for-sale securities	$	28,042		4,482		17,773		5,787
Derivatives		69,148		-		69,148		-
Total assets	$	97,190		4,482		86,921		5,787

Liabilities:
Derivatives	$	2,591		-		2,591		-
Option agreement		25,340		-		-		25,340
Total Liabilities	$	27,931		-		2,591		25,340

	Quarter Ended
	Pension						Postretirement
	June 28, 2015			June 29, 2014			June 28, 2015			June 29, 2014
Service cost	$	1,021			969			150			138
Interest cost		4,619			5,053			285			333
Expected return on assets		(5,497	)		(5,558	)		-			-
Net amortization and deferrals		2,207			1,251			(114	)		(114	)
Curtailment		138			-			-			-
Net periodic benefit cost	$	2,488			1,715			321			357

	Quarter Ended						Six Months Ended
Operating profit (loss)	June 28, 2015			June 29, 2014			June 28, 2015			June 29, 2014
U.S. and Canada	$	47,147			46,928			88,570			82,691
International		25,361			29,232			27,264			31,646
Entertainment and Licensing		7,443			14,645			23,845			20,627
Global Operations (a)		2,019			1,810			(1,763	)		66
Corporate and Eliminations (b)		(6,470	)		(10,051	)		(8,211	)		(9,018	)
	$	75,500			82,564			129,705			126,012

Period	(a) Total Number of Shares (or Units) Purchased		(b) Average Price Paid per Share (or Unit)		(c) Total Number of Shares (or Units) Purchased as Part of Publicly Announced Plans or Programs		(d) Maximum Number (or Approximate Dollar Value) of Shares (or Units) that May Yet Be Purchased Under the Plans or Programs
April 2015 3/30/15 – 4/26/15		100,365	$	63.83		100,365	$	532,552,527
May 2015 4/27/15 – 5/31/15		120,000	$	71.52		120,000	$	523,970,018
June 2015 6/1/15 – 6/28/15		91,100	$	72.77		91,100	$	517,340,236
Total		311,465	$	69.41		311,465	$	517,340,236