Hasbro (HAS) 8-K Results of Operations and Financial Condition

Exhibit 99.1

HASBRO, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Thousands of Dollars)	Sept. 29, 2013		Sept. 30, 2012
ASSETS
Cash and Cash Equivalents	$	588,668	$	696,733
Accounts Receivable, Net		1,215,289		1,195,517
Inventories		447,113		463,433
Other Current Assets		346,215		263,297
Total Current Assets		2,597,285		2,618,980
Property, Plant and Equipment, Net		231,199		217,636
Other Assets		1,761,661		1,609,671
Total Assets	$	4,590,145	$	4,446,287
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS AND SHAREHOLDERS' EQUITY
Short-term Borrowings	$	212,926	$	264,745
Current Portion of Long-term Debt		430,424		-
Payables and Accrued Liabilities		1,005,529		861,874
Total Current Liabilities		1,648,879		1,126,619
Long-term Debt		959,895		1,398,906
Other Liabilities		410,672		393,873
Total Liabilities		3,019,446		2,919,398
Redeemable Noncontrolling Interests		47,269		-
Total Shareholders' Equity		1,523,430		1,526,889
Total Liabilities, Redeemable Noncontrolling Interests and   Shareholders' Equity	$	4,590,145	$	4,446,287

HASBRO, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
	Quarter Ended											Nine Months Ended
(Thousands of Dollars and Shares Except Per Share Data)	Sept. 29, 2013			% Net Revenues			Sept. 30, 2012		% Net Revenues			Sept. 29, 2013			% Net Revenues			Sept. 30, 2012		% Net Revenues
Net Revenues	$	1,370,348			100.0	%	$	1,345,137		100.0	%	$	2,800,384			100.0	%	$	2,805,454		100.0	%
Costs and Expenses:
Cost of Sales		568,582			41.5	%		586,516		43.6	%		1,136,724			40.6	%		1,155,536		41.2	%
Royalties		143,947			10.5	%		89,224		6.6	%		243,568			8.8	%		212,551		7.6	%
Product Development		59,366			4.3	%		48,472		3.6	%		154,455			5.5	%		143,511		5.1	%
Advertising		136,487			10.0	%		134,997		10.0	%		277,278			9.9	%		279,339		10.0	%
Amortization of Intangibles		14,224			1.0	%		12,636		0.9	%		37,677			1.3	%		34,792		1.2	%
Program Product Cost Amortization		17,991			1.3	%		12,794		1.0	%		34,023			1.2	%		25,950		0.9	%
Selling, Distribution and Administration		231,045			16.9	%		210,876		15.7	%		633,238			22.6	%		602,145		21.5	%
Operating Profit		198,706			14.5	%		249,622		18.6	%		283,421			10.1	%		351,630		12.5	%
Interest Expense		41,194			3.0	%		23,043		1.7	%		86,398			3.0	%		68,568		2.4	%
Other (Income) Expense, Net		1,599			0.1	%		1,630		0.1	%		6,527			0.3	%		3,320		0.1	%
Earnings before Income Taxes		155,913			11.4	%		224,949		16.8	%		190,496			6.8	%		279,742		10.0	%
Income Taxes		30,070			2.2	%		60,097		4.5	%		34,844			1.2	%		74,042		2.7	%
Net Earnings		125,843			9.2	%		164,852		12.3	%		155,652			5.6	%		205,700		7.3	%
Net Loss Attributable to Noncontrolling Interests		(731	)		0.0	%		-		0.0	%		(731	)		0.0	%		-		0.0	%
Net Earnings Attributable to Hasbro, Inc.	$	126,574			9.2	%	$	164,852		12.3	%	$	156,383			5.6	%	$	205,700		7.3	%
Per Common Share
Net Earnings Attributable to Hasbro, Inc.
Basic	$	0.97					$	1.26				$	1.20					$	1.58
Diluted	$	0.96					$	1.24				$	1.19					$	1.56
Cash Dividends Declared	$	0.40					$	0.36				$	1.20					$	1.08
Weighted Average Number of Shares
Basic		130,253						130,619					129,972						130,146
Diluted		131,845						132,483					131,573						132,039

HASBRO, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Nine Months Ended
(Thousands of Dollars)	Sept. 29, 2013			Sept. 30, 2012
Cash Flows from Operating Activities:
Net Earnings	$	155,652		$	205,700
Non-cash Adjustments		168,429			152,201
Changes in Operating Assets and Liabilities		(276,764	)		(214,285	)
Net Cash Provided by Operating Activities		47,317			143,616
Cash Flows from Investing Activities:
Additions to Property, Plant and Equipment		(78,246	)		(74,896	)
Investments and Acquisitions, Net of Cash Acquired		(109,955	)		-
Other		3,121			2,558
Net Cash Utilized by Investing Activities		(185,080	)		(72,338	)
Cash Flows from Financing Activities:
Net (Repayments of) Proceeds from Short-term Borrowings		(11,235	)		83,380
Purchases of Common Stock		(86,972	)		(15,079	)
Stock-based Compensation Transactions		87,172			49,182
Dividends Paid		(104,164	)		(132,231	)
Net Cash Utilized by Financing Activities		(115,199	)		(14,748	)
Effect of Exchange Rate Changes on Cash		(8,071	)		(1,485	)
Cash and Cash Equivalents at Beginning of Year		849,701			641,688
Cash and Cash Equivalents at End of Period	$	588,668		$	696,733

HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
(Unaudited)
(Thousands of Dollars)
	Quarter Ended									Nine Months Ended
	Sept. 29, 2013			Sept. 30, 2012			% Change			Sept. 29, 2013			Sept. 30, 2012			% Change
Major Segment Results
U.S. and Canada Segment:
External Net Revenues	$	735,619		$	774,539			-5	%	$	1,466,921		$	1,510,112			-3	%
Operating Profit		146,991			154,239			-5	%		243,738			229,578			6	%
Operating Margin		20.0	%		19.9	%					16.6	%		15.2	%
International Segment:
External Net Revenues		582,676			524,144			11	%		1,212,665			1,174,366			3	%
Operating Profit		105,663			85,498			24	%		115,951			110,265			5	%
Operating Margin		18.1	%		16.3	%					9.6	%		9.4	%
Entertainment and Licensing Segment:
External Net Revenues		48,637			43,066			13	%		114,747			115,618			-1	%
Operating Profit		7,625			10,722			-29	%		16,622			26,652			-38	%
Operating Margin		15.7	%		24.9	%					14.5	%		23.1	%
Net Revenues by Product Category
Boys	$	392,014		$	471,125			-17	%	$	888,494		$	1,162,958			-24	%
Games		387,450			365,714			6	%		873,774			763,460			14	%
Girls		388,696			302,304			29	%		652,889			499,731			31	%
Preschool		202,188			205,994			-2	%		385,227			379,305			2	%
Total Net Revenues	$	1,370,348		$	1,345,137					$	2,800,384		$	2,805,454
International Segment Net Revenues by Major Geographic Region
Europe	$	376,648		$	345,281			9	%	$	755,097		$	751,547		<1		%
Latin America		131,914			115,342			14	%		260,443			237,090			10	%
Asia Pacific		74,114			63,521			17	%		197,125			185,729			6	%
Total	$	582,676		$	524,144					$	1,212,665		$	1,174,366
Reconciliation of EBITDA
Net Earnings Attributable to Hasbro,   Inc.	$	126,574		$	164,852					$	156,383		$	205,700
Net Loss Attributable to   Noncontrolling Interests		(731	)		-						(731	)		-
Interest Expense		41,194			23,043						86,398			68,568
Income Taxes		30,070			60,097						34,844			74,042
Depreciation		32,345			31,374						75,526			75,113
Amortization of Intangibles		14,224			12,636						37,677			34,792
EBITDA	$	243,676		$	292,002					$	390,097		$	458,215

HASBRO, INC.
SUPPLEMENTAL FINANCIAL DATA
RESTRUCTURING AND PENSION SETTLEMENT CHARGES
(Unaudited)
(Thousands of Dollars)
Operating Profit, Excluding Restructuring, Pension Settlement and Arbitration Award Charges
Quarter Ended September 29, 2013	As Reported		Less Restructuring, Pension Settlement and Arbitration Award Charges			Excluding Restructuring, Pension Settlement and Arbitration Award Charges		% Net Revenues
Net Revenues	$	1,370,348	$	-		$	1,370,348		100.0	%
Costs and Expenses:
Cost of Sales		568,582		-			568,582		41.5	%
Royalties		143,947		(57,164	)		86,783		6.3	%
Product Development		59,366		-			59,366		4.3	%
Advertising		136,487		-			136,487		10.0	%
Amortization of Intangibles		14,224		-			14,224		1.0	%
Program Production Cost Amortization		17,991		-			17,991		1.3	%
Selling, Distribution and Administration		231,045		(4,093	)		226,952		16.6	%
Operating Profit	$	198,706	$	(61,257	)	$	259,963		19.0	%
Nine Months Ended September 29, 2013	As Reported		Less Restructuring, Pension Settlement and Arbitration Award Charges			Excluding Restructuring, Pension Settlement and Arbitration Award Charges		% Net Revenues
Net Revenues	$	2,800,384	$	-		$	2,800,384		100.0	%
Costs and Expenses:
Cost of Sales		1,136,724		(8,493	)		1,128,231		40.3	%
Royalties		243,568		(57,164	)		186,404		6.7	%
Product Development		154,455		(3,515	)		150,940		5.4	%
Advertising		277,278		-			277,278		9.9	%
Amortization of Intangibles		37,677		-			37,677		1.3	%
Program Production Cost Amortization		34,023		-			34,023		1.2	%
Selling, Distribution and Administration		633,238		(23,473	)		609,765		21.8	%
Operating Profit	$	283,421	$	(92,645	)	$	376,066		13.4	%
Nine Months Ended September 30, 2012	As Reported		Less Restructuring Charges			Excluding Restructuring Charges		% Net Revenues
Net Revenues	$	2,805,454	$	-		$	2,805,454		100.0	%
Costs and Expenses:
Cost of Sales		1,155,536		(2,764	)		1,152,772		41.1	%
Royalties		212,551		-			212,551		7.6	%
Product Development		143,511		(2,479	)		141,032		5.0	%
Advertising		279,339		-			279,339		10.0	%
Amortization of Intangibles		34,792		-			34,792		1.2	%
Program Production Cost Amortization		25,950		-			25,950		0.9	%
Selling, Distribution and Administration		602,145		(5,887	)		596,258		21.3	%
Operating Profit	$	351,630	$	(11,130	)	$	362,760		12.9	%
NOTE: There were no restructuring charges included in the reported amounts for the quarter ended September 30, 2012.

Net Earnings and Earnings per Share Excluding Restructuring Charges, Pension Settlement Charges, Arbitration Award Charges and Benefit from Settlement of Tax Exams
	Quarter Ended
	Sept. 29, 2013			Diluted Per Share Amount			Sept. 30, 2012		Diluted Per Share Amount
Net Earnings Attributable to Hasbro, Inc., as Reported	$	126,574		$	0.96		$	164,852	$	1.24
Restructuring Charges, Net of Tax		2,447			0.02			-		-
Pension Settlement Charges, Net of Tax		679			0.01			-		-
Arbitration Award Charges, Net of Tax		66,447			0.50			-		-
2013 Benefit from Tax Exam Settlement		(23,637	)		(0.18	)		-		-
Net Earnings Attributable to Hasbro, Inc. as Adjusted	$	172,510		$	1.31		$	164,852	$	1.24
	Nine Months Ended
	Sept. 29, 2013			Diluted Per Share Amount			Sept. 30, 2012		Diluted Per Share Amount
Net Earnings Attributable to Hasbro, Inc., as Reported	$	156,383		$	1.19		$	205,700	$	1.56
Restructuring Charges, Net of Tax		21,224			0.16			7,675		0.06
Pension Settlement Charges, Net of Tax		2,469			0.02			-		-
Arbitration Award Charges, Net of Tax		66,447			0.50			-		-
2013 Benefit from Tax Exam Settlement		(23,637	)		(0.18	)		-		-
Net Earnings Attributable to Hasbro, Inc. as Adjusted	$	222,886		$	1.69		$	213,375	$	1.62

Restructuring, Pension Settlement and Arbitration Award Charges – by Segment
	Quarter Ended				Nine Months Ended
	Sept. 29, 2013		Sept. 30, 2012		Sept. 29, 2013		Sept. 30, 2012
U.S. and Canada Segment	$	-	$	-	$	-	$	2,444
International Segment		-		-		-		1,628
Entertainment and Licensing Segment		-		-		1,729		555
Global Operations Segment		-		-		-		4,307
Corporate and Eliminations		61,257		-		90,916		2,196
Total Restructuring and Pension Settlement Charges	$	61,257	$	-	$	92,645	$	11,130