Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 27, 2016 | Apr. 18, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | HASBRO INC | |
Entity Central Index Key | 46,080 | |
Current Fiscal Year End Date | --12-25 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 124,702,080 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 27, 2016 | |
Trading Symbol | HAS |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 27, 2016 | Dec. 27, 2015 | Mar. 29, 2015 |
Current assets | |||
Cash and cash equivalents | $ 1,095,880 | $ 976,750 | $ 1,081,397 |
Accounts receivable, less allowance for doubtful accounts of $31,100, $14,900 and $16,400 | 670,663 | 1,217,850 | 563,301 |
Inventories | 461,734 | 384,492 | 340,654 |
Prepaid expenses and other current assets | 295,806 | 286,506 | 346,726 |
Total current assets | 2,524,083 | 2,865,598 | 2,332,078 |
Property, plant and equipment, less accumulated depreciation of $365,600, $363,600 and $510,700 | 241,253 | 237,527 | 243,589 |
Other assets | |||
Goodwill | 592,793 | 592,695 | 592,724 |
Other intangibles, net, accumulated amortization of $850,000, $841,300, and $810,500 | 272,116 | 280,807 | 311,576 |
Other | 734,450 | 744,090 | 767,149 |
Total other assets | 1,599,359 | 1,617,592 | 1,671,449 |
Total assets | 4,364,695 | 4,720,717 | 4,247,116 |
Current liabilities | |||
Short-term borrowings | 89,000 | 164,563 | 231,914 |
Accounts payable | 176,665 | 241,210 | 142,946 |
Accrued liabilities | 502,708 | 658,874 | 442,209 |
Total current liabilities | 768,373 | 1,064,647 | 817,069 |
Long-term debt | 1,547,434 | 1,547,115 | 1,546,169 |
Other liabilities | 402,346 | 404,883 | 396,137 |
Total liabilities | 2,718,153 | 3,016,645 | 2,759,375 |
Redeemable noncontrolling interests | 39,152 | 40,170 | 42,234 |
Shareholders' equity | |||
Preference stock of $2.50 par value. Authorized 5,000,000 shares; none issued | 0 | 0 | 0 |
Common stock of $.50 par value. Authorized 600,000,000 shares; issued 209,694,630 at March 27, 2016, December 27, 2015 and March 29, 2015 | 104,847 | 104,847 | 104,847 |
Additional paid-in capital | 906,211 | 893,630 | 825,489 |
Retained earnings | 3,837,372 | 3,852,321 | 3,599,571 |
Accumulated other comprehensive loss | (164,353) | (146,001) | (86,996) |
Treasury stock, at cost; 84,829,514 shares at March 27, 2016; 84,899,200 shares at December 27, 2015; and 85,120,544 shares at March 29, 2015 | (3,076,687) | (3,040,895) | (2,997,404) |
Total shareholders' equity | 1,607,390 | 1,663,902 | 1,445,507 |
Total liabilities, redeemable noncontrolling interests and shareholders' equity | $ 4,364,695 | $ 4,720,717 | $ 4,247,116 |
Consolidated Balance Sheets (U3
Consolidated Balance Sheets (Unaudited) Parenthetical - USD ($) $ in Thousands | Mar. 27, 2016 | Dec. 27, 2015 | Mar. 29, 2015 |
Current assets | |||
Accounts receivable, allowance for doubtful accounts | $ 31,100 | $ 14,900 | $ 16,400 |
Property, plant and equipment, accumulated depreciation | 365,600 | 363,600 | 510,700 |
Other assets | |||
Other intangibles, accumulated amortization | $ 850,000 | $ 841,300 | $ 810,500 |
Shareholders' equity | |||
Preference stock, par value (in dollars per share) | $ 2.5 | $ 2.5 | $ 2.5 |
Preference stock, authorized shares (in shares) | 5,000,000 | 5,000,000 | 5,000,000 |
Preference stock, issued (in shares) | 0 | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.5 | $ 0.5 | $ 0.5 |
Common stock, authorized shares (in shares) | 600,000,000 | 600,000,000 | 600,000,000 |
Common stock, issued (in shares) | 209,694,630 | 209,694,630 | 209,694,630 |
Treasury stock, at cost; shares (in shares) | 84,829,514 | 84,899,200 | 85,120,544 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Consolidated Statements of Operations (Unaudited) [Abstract] | ||
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 (in dollars per share) | $ 0.39 | $ 0.21 |
Diluted (in dollars per share) | 0.38 | 0.21 |
Cash dividends declared per common share (in dollars per share) | $ 0.51 | $ 0.46 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Consolidated Statements of Comprehensive Earnings [Abstract] | ||
Net earnings | $ 46,971 | $ 25,821 |
Other comprehensive earnings (loss): | ||
Foreign currency translation adjustments | 12,140 | (47,311) |
Net gains on cash flow hedging activities, net of tax | (15,786) | 62,300 |
Unrealized holding (losses) gains on available-for-sale securities, net of tax | 1,680 | 226 |
Reclassifications to earnings, net of tax: | ||
Net (gains) losses on cash flow hedging activities | (17,561) | (7,961) |
Amortization of 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 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 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 (Increase) in accounts receivable | 547,154 | 478,330 |
Decrease (Increase) in inventories | (73,238) | (20,309) |
Decrease (Increase) in prepaid expenses and other current assets | (32,032) | (6,319) |
Program Production Costs | (11,619) | (9,252) |
Increase (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) proceeds from 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 financing activities | 762 | 350 |
Net cash utilized by financing activities | (151,671) | (82,489) |
Effect of exchange rate changes on cash | 4,770 | (11,451) |
Increase (Decrease) 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 |
Cash paid during the period for: | ||
Interest | 31,066 | 30,940 |
Income taxes | $ 34,332 | $ 28,292 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 27, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation | (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 March 27, 2016 and March 29, 2015 , and th e 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 m anagement 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 March 27, 2016 and March 29, 2015 are each 13-week periods. The results of operations for the quarter are not necessarily indicative of results to be expected for the full year, nor were those of the comparable 2015 period representative of those actually experienced for the full year 2015 . 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 27, 2015 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 27, 2015 . |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Mar. 27, 2016 | |
Earnings Per Share (Thousands of Dollars and Shares Except Per Share Data) [Abstract] | |
Earnings Per Share | (2 ) Earnings Per Share Net earnings per share data for the quarter s ended March 27, 2016 and March 29, 2015 were computed as follows: 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 For the quarter s ended March 27, 2016 and March 29, 2015 , options and restricted stock units totaling 492 and 782 , respectively, were excluded from the calculation of diluted earnings per share because to include the m would hav e been antidilutive . |
Other Comprehensive Earnings (L
Other Comprehensive Earnings (Loss) | 3 Months Ended |
Mar. 27, 2016 | |
Other Comprehensive Earnings (Loss) [Abstract] | |
Other Comprehensive Earnings (Loss) | (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 earn ings (loss) for the quarters ended March 27, 2016 and March 29, 2015 . Quarter Ended March 27, March 29, 2016 2015 Other comprehensive earnings (loss), tax effect: Tax benefit (expense) on cash flow hedging activities $ 3,256 (4,815) Tax expense on unrealized holding gains (953) (128) Reclassifications to earnings, tax effect: Tax expense (benefit) on cash flow hedging activities 1,749 342 Tax benefit on unrecognized pension and postretirement amounts reclassified to the consolidated statements of operations (667) (684) Total tax effect on other comprehensive earnings (loss) $ 3,385 (5,285) Changes in the components of accumulated other comprehensive loss for the three months ended March 27, 2016 and March 29, 2015 are as follows: 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) At March 27, 2016 , the Company had remaining net deferred gains on foreign currency forward c ontracts, net of tax, of $65,046 in accumulated other comprehensive loss ("AOCE"). These instruments hedge payments related to inventory purchased in the first quarter of 2016 or forecasted to be purchased during the remainder of 2016 and, to a lesser extent, 2017 through 2020, intercompany expenses expected to be paid or received during 2016 and 2017 , cash receipts for sales made at the end o f the first quarter of 2016 or forecasted to be made in the remainder of 2016 and, to a lesser extent, 2017 through 2018 . These amounts will be reclassified into the consolidated statements of operations upon the sale of the related inventor y 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 March 27, 2016 , deferred losses, net o f tax of $19,076 related to these instruments remained in AOCE. For the quarter s ended March 27, 2016 and March 29, 2015 , losses of $450 were reclassified from AOCE to net earnings. Of the amount included in AOCE at March 27, 2016 , the Company expects approxima tely $44,500 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. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Mar. 27, 2016 | |
Financial Instruments (Thousands of Dollars) [Abstract] | |
Financial Instruments | (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 March 27, 2016 , March 29, 2015 and December 27, 2015 , the carrying cost of these instruments approximated their fair value. The Company's financial instruments at March 27, 2016 , March 29, 2015 and December 27, 2015 also include certain assets and liabilities mea sured at fair value (see Notes 6 an d 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 March 27, 2016 , March 29, 2015 and December 27, 2015 are as follows: 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 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. In April 2015, the FASB issued ASU No. 2015-03, Interest – Imputation of Interest (ASC 835-30), which simplifies the presentation of debt issuance costs. ASU 2015-03 requires debt issuance costs related to long-term debt to be presented in the balance sheet as a reduction to the carrying amount of the related debt liability, consistent with the presentation of discounts. The Company adopted ASU 2015-03 at December 27, 2015 and deferred debt costs are presented as a reduction of long-term debt. Debt issuance costs of $ 13,726 have been reclassified from other assets in the consolidated balance sheet for March 29, 2015 to reflect thi s change in accounting principle . |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 27, 2016 | |
Income Taxes (Thousands of Dollars) [Abstract] | |
Income Taxes | (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 t ax 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. In November 2015, the FASB issued ASU 2015-17, Income T axes , which simplifies the presentation of deferred income taxes by removing the requirement to bifurcate deferred income tax assets and liabilities between current and non-current. The Company adopted ASU 2015-17 as of December 27, 2015 and deferred incom e tax assets and liabilities are presented as non-current in the consolidated balance sheets. This adoption was applied retrospectively and $73,230 has been reclassified from prepaid expenses and other current assets to other assets and $3,658 has been rec lassified from accrued liabilities to other liabilities in the consolidated balance sheet as of March 29, 2015. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 27, 2016 | |
Fair Value of Financial Instruments (Thousands of Dollars) [Abstract] | |
Fair Value of Financial Instruments | (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 o bservable 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 f or similar assets and liabilities. The Company has elected the fair value option for certain available-for-sale investments. At March 27, 2016 , March 29, 2015 and December 27, 2015 , t hese investments totaled $22,665, $23,141 and $22,539 , respectively, and are included in prepaid expenses and other current assets in the consolidated balance sheets. The Company recorded net gains and interest income of $83 and $17 on these investments in other (income) expense, net for the quarter s ended March 27, 2016 and March 29, 2015 , respectively, related to the change in fair value of such instruments. At March 27, 2016 , March 29, 2015 and December 27, 2015 , the Company had the following assets and liabilities measured at fair value (excluding assets for which the fair value is measured using net assets value per share) in its consolidated balance sheets: 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 Available-for-sale securities include equity securities of one company quoted on an active public market . 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 March 27, 2016 , March 29, 2015 and December 27, 2015 , 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 valua tion techniques during the three -month period ended March 27, 2016 . 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): 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) In addition to the above, the Company has three investments for which the fair value is measured using net asset value per share. At March 27, 2016, March 29, 2015 and December 27, 2015, these investments had fair values of $22,665, $23,141 and $22,539, respectively. Two of the investments have net asset values that are predominantly based on underlying investments which are traded on an active market and are redeemable within 45 days. The third investment invests in hedge funds which are generally redeem able on a quarterly basis with 30 – 90 days notice . |
Pension and Postretirement Bene
Pension and Postretirement Benefits | 3 Months Ended |
Mar. 27, 2016 | |
Pension and Postretirement Benefits (Thousands of Dollars) [Abstract] | |
Pension and Postretirement Benefits | (7 ) Pension and Postretirement Benefits The components of the net periodic cost of the Company's defined benefit pension and other postretirement plans for th e quarters ended March 27, 2016 and March 29, 2015 are as follows: 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 During the three months ended March 27, 2016 , the Company made cash contributions to its defined benefit pe nsion plans of approximately $37 0 in the aggregate. The Company expects to contribute approximately $3,130 during the remainder of fiscal 2016 . |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 27, 2016 | |
Derivative Financial Instruments (Thousands of Dollars) [Abstract] | |
Derivative Financial Instruments | (10 ) 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 E uros. 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 Com pany. 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 2016 through 2020. At March 27, 2016 , March 29, 2015 and December 27, 2015 , the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows: 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 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 March 27, 2016 , March 29, 2015 and December 27, 2015 as follows: March 27, March 29, December 27, 2016 2015 2015 Prepaid expenses and other current assets Unrealized gains $ 53,774 74,219 78,910 Unrealized losses (6,890) (10,253) (5,932) Net unrealized gain $ 46,884 63,966 72,978 Other assets Unrealized gains $ 26,454 66,438 35,366 Unrealized losses (3,618) (914) (710) Net unrealized gains $ 22,836 65,524 34,656 Accrued liabilities Unrealized gains $ 1,900 3,149 - Unrealized losses (3,086) (6,662) - Net unrealized loss $ (1,186) (3,513) - Other liabilities Unrealized gains $ 1,349 - 241 Unrealized losses (3,954) - (437) Net unrealized loss $ (2,605) - (196) Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the quarter s ended March 27, 2016 and March 29, 2015 as follows: Quarter Ended March 27, March 29, 2016 2015 Statements of Operations Classification Cost of sales $ 15,698 10,063 Sales 98 (1,354) Royalties and Other 7 43 Net realized gains $ 15,803 8,752 In addition, gains of $3,957 were reclassified to earnings as a result of hedge inef fectiveness for the quarter ended March 27, 2016 . There were no reclassifications as a result of hedge ineffectiveness during the first quarter of 2015 . 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 March 27, 2016 , March 29, 2015 and December 27, 2015 the total notional amounts of the Company's undesignated deri vative instruments were $88,862, $119,395 and $341,389 , respectively. At March 27, 2016 , March 29, 2015 and December 27, 2015 , the fair values of the Company's undesignated derivative financial instruments were recorded in the consolidated balance sheets as follows: March 27, March 29, December 27, 2016 2015 2015 Prepaid expenses and other current assets Unrealized gains $ - 1,088 - Unrealized losses - (28) - Net unrealized gain - 1,060 - Accrued liabilities Unrealized gains 321 - 416 Unrealized losses (462) - (1,460) Net unrealized loss (141) - (1,044) Total unrealized gain (loss), net $ (141) 1,060 (1,044) The Comp any recorded net gains of $3,255 and $10,071 on these instruments to other (income) expense, net for the quarter s ended March 27, 2016 and March 29, 2015 , 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 f inancial instruments see Notes 4 and 6 . |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 27, 2016 | |
Segment Reporting (Thousands of Dollars) [Abstract] | |
Segment Reporting | (9 ) 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, vehicl es and toy-related specialty products, as well as trad itional board games, 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 consumer product licensing, digital gaming, movie and television entertainment operations. The Global Operations segment is responsible for 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 E liminations 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. Cert ain 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 sa me as those referenced in note 1 . Results shown for the quarter are not necessarily representative of those which may be expected for the full ye ar 2016 , nor were those of the comparable 2015 period representative of those actually experienced for the full year 2015 . Similarly, such results are not necessarily those which would be achieved were each segment an unaffiliated business enterpr ise. Information by segment and a reconciliation to repo rted amounts for the quarters ended March 27, 2016 and March 29, 2015 are as follow s: Quarter Ended March 27, 2016 March 29, 2015 Net revenues External Affiliate External Affiliate U.S. and Canada $ 443,648 1,444 345,690 1,050 International 345,037 - 305,713 96 Entertainment and Licensing 42,495 4,701 60,631 3,409 Global Operations (a) - 297,189 1,466 236,843 Corporate and Eliminations - (303,334) - (241,398) $ 831,180 - 713,500 - Quarter Ended March 27, March 29, Operating profit (loss) 2016 2015 U.S. and Canada $ 78,335 41,423 International 2,853 1,903 Entertainment and Licensing 5,442 16,402 Global Operations (a) 3,444 (3,782) Corporate and Eliminations (b) (4,158) (1,741) $ 85,916 54,205 March 27, March 29, December 27, Total assets 2016 2015 2015 U.S. and Canada $ 2,751,504 3,430,196 2,654,270 International 1,983,747 2,088,096 2,345,847 Entertainment and Licensing 614,003 800,337 567,753 Global Operations 2,423,811 2,330,734 2,410,142 Corporate and Eliminations (b) (3,408,370) (4,402,247) (3,257,295) $ 4,364,695 4,247,116 4,720,717 (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 b etween 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-comp any balance sheet amounts. The following table represents consolidated International segment net revenues by major geographic region for the quarter s ended March 27, 2016 and March 29, 2015 . Quarter Ended March 27, March 29, 2016 2015 Europe $ 224,123 195,871 Latin America 55,596 57,608 Asia Pacific 65,318 52,234 Net revenues $ 345,037 305,713 The following table presents consolidated net revenues by class of principal products for the quarter s 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 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Mar. 27, 2016 | |
Earnings Per Share (Thousands of Dollars and Shares Except Per Share Data) [Abstract] | |
Earnings Per Share | 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 |
Other Comprehensive Earnings 17
Other Comprehensive Earnings (Loss) (Tables) | 3 Months Ended |
Mar. 27, 2016 | |
Other Comprehensive Earnings (Loss) [Abstract] | |
Schedule of Other Comprehensive Income, Tax Effect [Text Block] | Quarter Ended March 27, March 29, 2016 2015 Other comprehensive earnings (loss), tax effect: Tax benefit (expense) on cash flow hedging activities $ 3,256 (4,815) Tax expense on unrealized holding gains (953) (128) Reclassifications to earnings, tax effect: Tax expense (benefit) on cash flow hedging activities 1,749 342 Tax benefit on unrecognized pension and postretirement amounts reclassified to the consolidated statements of operations (667) (684) Total tax effect on other comprehensive earnings (loss) $ 3,385 (5,285) |
Schedule of Accumulated Other Comprehensive Earnings (Loss) | 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) |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Mar. 27, 2016 | |
Financial Instruments (Thousands of Dollars) [Abstract] | |
Schedule of Long-term Debt Instruments | 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 of Financial Instr19
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 27, 2016 | |
Fair Value of Financial Instruments (Thousands of Dollars) [Abstract] | |
Fair Value Hierarchy | 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 |
Reconciliation of Level 3 Fair Value | 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) |
Pension and Postretirement Be20
Pension and Postretirement Benefits (Tables) | 3 Months Ended |
Mar. 27, 2016 | |
Pension and Postretirement Benefits (Thousands of Dollars) [Abstract] | |
Components of net periodic cost | 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 |
Derivative Financial Instrume21
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 27, 2016 | |
Derivative Financial Instruments (Thousands of Dollars) [Abstract] | |
Summary of Cash Flow Hedging Instruments | 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 |
Derivatives Fair Value by Balance Sheet Location | March 27, March 29, December 27, 2016 2015 2015 Prepaid expenses and other current assets Unrealized gains $ 53,774 74,219 78,910 Unrealized losses (6,890) (10,253) (5,932) Net unrealized gain $ 46,884 63,966 72,978 Other assets Unrealized gains $ 26,454 66,438 35,366 Unrealized losses (3,618) (914) (710) Net unrealized gains $ 22,836 65,524 34,656 Accrued liabilities Unrealized gains $ 1,900 3,149 - Unrealized losses (3,086) (6,662) - Net unrealized loss $ (1,186) (3,513) - Other liabilities Unrealized gains $ 1,349 - 241 Unrealized losses (3,954) - (437) Net unrealized loss $ (2,605) - (196) |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations | Quarter Ended March 27, March 29, 2016 2015 Statements of Operations Classification Cost of sales $ 15,698 10,063 Sales 98 (1,354) Royalties and Other 7 43 Net realized gains $ 15,803 8,752 |
Fair values of undesignated derivative financial instruments | March 27, March 29, December 27, 2016 2015 2015 Prepaid expenses and other current assets Unrealized gains $ - 1,088 - Unrealized losses - (28) - Net unrealized gain - 1,060 - Accrued liabilities Unrealized gains 321 - 416 Unrealized losses (462) - (1,460) Net unrealized loss (141) - (1,044) Total unrealized gain (loss), net $ (141) 1,060 (1,044) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 27, 2016 | |
Segment Reporting (Thousands of Dollars) [Abstract] | |
Net revenues by segment | Quarter Ended March 27, 2016 March 29, 2015 Net revenues External Affiliate External Affiliate U.S. and Canada $ 443,648 1,444 345,690 1,050 International 345,037 - 305,713 96 Entertainment and Licensing 42,495 4,701 60,631 3,409 Global Operations (a) - 297,189 1,466 236,843 Corporate and Eliminations - (303,334) - (241,398) $ 831,180 - 713,500 - |
Operating profit (loss) by segments | Quarter Ended March 27, March 29, Operating profit (loss) 2016 2015 U.S. and Canada $ 78,335 41,423 International 2,853 1,903 Entertainment and Licensing 5,442 16,402 Global Operations (a) 3,444 (3,782) Corporate and Eliminations (b) (4,158) (1,741) $ 85,916 54,205 |
Total assets by segments | March 27, March 29, December 27, Total assets 2016 2015 2015 U.S. and Canada $ 2,751,504 3,430,196 2,654,270 International 1,983,747 2,088,096 2,345,847 Entertainment and Licensing 614,003 800,337 567,753 Global Operations 2,423,811 2,330,734 2,410,142 Corporate and Eliminations (b) (3,408,370) (4,402,247) (3,257,295) $ 4,364,695 4,247,116 4,720,717 |
Schedule of net revenues by international region | Quarter Ended March 27, March 29, 2016 2015 Europe $ 224,123 195,871 Latin America 55,596 57,608 Asia Pacific 65,318 52,234 Net revenues $ 345,037 305,713 |
Net revenues by product category | 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 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Earnings Per Share (Thousands of Dollars and Shares Except Per Share Data) [Abstract] | ||
Net Earnings Attributable to Hasbro, Inc. | $ 48,751 | $ 26,667 |
Basic [Abstract] | ||
Average shares outstanding (in shares) | 125,266 | 124,853 |
Equivalent shares (basic) (in shares) | 125,266 | 124,853 |
Net earnings attributable to Hasbro, Inc. per common share-basic (in dollars per share) | $ 0.39 | $ 0.21 |
Diluted [Abstract] | ||
Average shares outstanding (in shares) | 125,266 | 124,853 |
Effect of dilutive securities: | ||
Options and other share-based awards (in shares) | 1,682 | 1,489 |
Equivalent shares (diluted) (in shares) | 126,948 | 126,342 |
Net earnings attributable to Hasbro, Inc. per common share-diluted (in dollars per share) | $ 0.38 | $ 0.21 |
Employee Stock Option and Restricted Stock Units [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Options to acquire shares totaling excluded as antidilutive | 492 | 782 |
Other Comprehensive Earnings 24
Other Comprehensive Earnings (Loss), Tax Effects on Changes in Other Comprehensive Earnings (loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Other Comprehensive Earnings (Loss) [Abstract] | ||
Tax benefit (expense) on cash flow hedging activities | $ 3,256 | $ (4,815) |
Tax benefit (expense) on unrealized holding gains | (953) | (128) |
Reclassification Adjustment from AOCE, Tax expense (benefit) on cash flow hedging activities | 1,749 | 342 |
Reclassification Adjustment from AOCE, Tax expense (benefit) on amortization of unrecognized pension and postretirement amounts | (667) | (684) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Total | 3,385 | $ (5,285) |
Cash Flow Hedge gains to be Reclassified within Twelve Months | $ 44,500 |
Other Comprehensive Earnings 25
Other Comprehensive Earnings (Loss), Changes in the components of accumulated other comprehensive loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Accumulated Other Comprehensive (Loss) [Line Items] | ||
Total accumulated other comprehensive earnings (loss), Beginning of Year | $ (146,001) | $ (95,454) |
Other Comprehensive Earnings (Loss), Net of Tax, Total | (18,352) | 8,458 |
Total accumulated other comprehensive earnings (loss), End of Period | (164,353) | (86,996) |
Pension and Postretirement Amounts [Member] | ||
Accumulated Other Comprehensive (Loss) [Line Items] | ||
Total accumulated other comprehensive earnings (loss), Beginning of Year | (102,931) | (113,092) |
Other Comprehensive Earnings (Loss), Net of Tax, Total | 1,175 | 1,204 |
Total accumulated other comprehensive earnings (loss), End of Period | (101,756) | (111,888) |
Gains (Losses) On Derivative Instruments [Member] | ||
Accumulated Other Comprehensive (Loss) [Line Items] | ||
Total accumulated other comprehensive earnings (loss), Beginning of Year | 79,317 | 43,689 |
Other Comprehensive Earnings (Loss), Net of Tax, Total | (33,347) | 54,339 |
Total accumulated other comprehensive earnings (loss), End of Period | 45,970 | 98,028 |
Gains (Losses) On Derivative Instruments [Member] | Interest Rate Contract [Member] | ||
Accumulated Other Comprehensive (Loss) [Line Items] | ||
Total accumulated other comprehensive earnings (loss), End of Period | (19,076) | |
Gains (Losses) On Derivative Instruments [Member] | Foreign Exchange Forward [Member] | ||
Accumulated Other Comprehensive (Loss) [Line Items] | ||
Total accumulated other comprehensive earnings (loss), End of Period | 65,046 | |
Unrealized Holding Gains on Available-for-Sale Securities [Member] | ||
Accumulated Other Comprehensive (Loss) [Line Items] | ||
Total accumulated other comprehensive earnings (loss), Beginning of Year | 1,258 | 1,900 |
Other Comprehensive Earnings (Loss), Net of Tax, Total | 1,680 | 226 |
Total accumulated other comprehensive earnings (loss), End of Period | 2,938 | 2,126 |
Foreign Currency Translation Adjustments [Member] | ||
Accumulated Other Comprehensive (Loss) [Line Items] | ||
Total accumulated other comprehensive earnings (loss), Beginning of Year | (123,645) | (27,951) |
Other Comprehensive Earnings (Loss), Net of Tax, Total | 12,140 | (47,311) |
Total accumulated other comprehensive earnings (loss), End of Period | $ (111,505) | $ (75,262) |
Other Comprehensive Earnings 26
Other Comprehensive Earnings (Loss), Reclassification From Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest Expense | $ 24,044 | $ 24,585 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Gains (Losses) On Derivative Instruments [Member] | Interest Rate Contract [Member] | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Interest Expense | $ 450 | $ 450 |
Financial Instruments (Details)
Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2016 | Dec. 27, 2015 | Mar. 29, 2015 | |
Debt Instrument [Line Items] | |||
Carrying Cost | $ 1,559,895 | $ 1,559,895 | $ 1,559,895 |
Less: Deferred debt expenses | 12,461 | 12,780 | 13,726 |
Long Term Debt | 1,547,434 | 1,547,115 | 1,546,169 |
Fair Value | 1,644,811 | 1,638,384 | 1,743,474 |
Notes 6.35% Due 2040 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying Cost | 500,000 | 500,000 | 500,000 |
Fair Value | $ 560,900 | 556,300 | 597,900 |
Maturity Date | Mar. 15, 2040 | ||
Interest Rate | 6.35% | ||
Notes 6.30% Due 2017 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying Cost | $ 350,000 | 350,000 | 350,000 |
Fair Value | $ 370,965 | 374,045 | 389,305 |
Maturity Date | Sep. 15, 2017 | ||
Interest Rate | 6.30% | ||
Notes 5.10% Due 2044 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying Cost | $ 300,000 | 300,000 | 300,000 |
Fair Value | $ 287,610 | 286,710 | 316,260 |
Maturity Date | May 16, 2044 | ||
Interest Rate | 5.10% | ||
Notes 3.15% Due 2021 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying Cost | $ 300,000 | 300,000 | 300,000 |
Fair Value | $ 302,880 | 300,060 | 308,970 |
Maturity Date | May 17, 2021 | ||
Interest Rate | 3.15% | ||
Debentures 6.60% Due 2028 [Member] | |||
Debt Instrument [Line Items] | |||
Carrying Cost | $ 109,895 | 109,895 | 109,895 |
Fair Value | $ 122,456 | $ 121,269 | $ 131,039 |
Maturity Date | Jan. 18, 2028 | ||
Interest Rate | 6.60% |
Income Taxes (Details)
Income Taxes (Details) $ in Thousands | Mar. 29, 2015USD ($) |
Income Tax Examination [Line Items] | |
Reclass from Prepaid Expenses and Other Current Assets to Other Assets | $ 73,230 |
Reclass from Accrued Liabilities to Other Liabilities | $ 3,658 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments, Assests and Liabilities Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 27, 2016 | Dec. 27, 2015 | Mar. 29, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities, assets | $ 6,109 | $ 3,476 | $ 4,836 |
Derivatives, assets | 69,720 | 107,634 | 130,550 |
Total assets, fair value hierarchy | 75,829 | 111,110 | 135,386 |
Derivatives, liabilities | 3,932 | 1,240 | 3,513 |
Option Agreement | 27,920 | 28,360 | 24,920 |
Total Liabilities | 31,852 | 29,600 | 28,433 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities, assets | 6,109 | 3,476 | 4,836 |
Derivatives, assets | 0 | 0 | 0 |
Total assets, fair value hierarchy | 6,109 | 3,476 | 4,836 |
Derivatives, liabilities | 0 | 0 | 0 |
Option Agreement | 0 | 0 | 0 |
Total Liabilities | 0 | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities, assets | 0 | 0 | 0 |
Derivatives, assets | 69,720 | 107,634 | 130,550 |
Total assets, fair value hierarchy | 69,720 | 107,634 | 130,550 |
Derivatives, liabilities | 3,932 | 1,240 | 3,513 |
Option Agreement | 0 | 0 | 0 |
Total Liabilities | 3,932 | 1,240 | 3,513 |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities, assets | 0 | 0 | 0 |
Derivatives, assets | 0 | 0 | 0 |
Total assets, fair value hierarchy | 0 | 0 | 0 |
Derivatives, liabilities | 0 | 0 | 0 |
Option Agreement | 27,920 | 28,360 | 24,920 |
Total Liabilities | $ 27,920 | $ 28,360 | $ 24,920 |
Fair Value of Financial Instr30
Fair Value of Financial Instruments, Significant Unobservable Inputs Roll Forward (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2016 | Mar. 29, 2015 | Dec. 27, 2015 | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||
Balance at beginning of year | $ (28,360) | $ (25,340) | |
Gain from change in fair value | 440 | 420 | |
Balance at end of period | (27,920) | (24,920) | |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Other (income) expense, net | (4,872) | 3,765 | |
Fair Value, Measurements, Recurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Alternative Investments, Fair Value Disclosure | 22,665 | 23,141 | $ 22,539 |
Other (income) expense, net | $ 83 | $ 17 |
Pension and Postretirement Be31
Pension and Postretirement Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Pension [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | $ 998 | $ 1,011 |
Interest cost | 4,606 | 4,605 |
Expected return on assets | (5,507) | (5,479) |
Net amortization and deferrals | 2,132 | 2,201 |
Net periodic benefit cost | 2,229 | 2,338 |
Contributions to defined benefit pension plans | 370 | |
Expected contributions during the remainder of fiscal year | 3,130 | |
Postretirement [Member] | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Service cost | 132 | 150 |
Interest cost | 294 | 285 |
Expected return on assets | 0 | 0 |
Net amortization and deferrals | 0 | (114) |
Net periodic benefit cost | $ 426 | $ 321 |
Derivative Financial Instrume32
Derivative Financial Instruments, Narrative (Details) - Foreign Exchange Forward [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2016 | Mar. 29, 2015 | Dec. 27, 2015 | |
Not Designated as Hedging Instrument [Member] | Intercompany Loans [Member] | |||
Undesignated Hedges [Abstract] | |||
Hedge description of hedged item | Intercompany Loans | ||
Underlying risk | Foreign Currency | ||
Notional amount of hedged item | $ 88,862 | $ 119,395 | $ 341,389 |
Not Designated as Hedging Instrument [Member] | Intercompany Loans [Member] | Other Income (Expense) [Member] | |||
Undesignated Hedges [Abstract] | |||
Derivative Instruments, Gain (Loss) Recognized in Income, Net | 3,255 | 10,071 | |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | |||
Hedge Ineffectiveness [Abstract] | |||
Ineffective portion, amount of gains (losses) reclassified from other comprehensive earnings into earnings | 3,957 | 0 | |
Undesignated Hedges [Abstract] | |||
Notional amount of hedged item | $ 1,630,256 | $ 1,229,537 | $ 1,532,198 |
Derivative Financial Instrume33
Derivative Financial Instruments, Notional Amounts and Fair Values of Foreign Currency Forward Contracts Designated as Cash Flow Hedging Instruments (Details) - Foreign Exchange Forward [Member] - Cash Flow Hedging [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2016 | Dec. 27, 2015 | Mar. 29, 2015 | |
Derivative [Line Items] | |||
Notional amount of hedged item | $ 1,630,256 | $ 1,532,198 | $ 1,229,537 |
Fair value of hedged item | $ 65,929 | 107,438 | 125,977 |
Inventory Purchases [Member] | |||
Derivative [Line Items] | |||
Hedge description of hedged item | Inventory purchases | ||
Notional amount of hedged item | $ 1,277,977 | 1,380,488 | 912,376 |
Fair value of hedged item | $ 69,748 | 108,521 | 135,512 |
Sales [Member] | |||
Derivative [Line Items] | |||
Hedge description of hedged item | Sales | ||
Notional amount of hedged item | $ 82,072 | 97,350 | 232,643 |
Fair value of hedged item | $ 258 | 803 | (6,769) |
Royalties and Other [Member] | |||
Derivative [Line Items] | |||
Hedge description of hedged item | Royalties and Other | ||
Notional amount of hedged item | $ 270,207 | 54,360 | 84,518 |
Fair value of hedged item | $ (4,077) | $ (1,886) | $ (2,766) |
Derivative Financial Instrume34
Derivative Financial Instruments, Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) - Foreign Exchange Forward [Member] - USD ($) $ in Thousands | Mar. 27, 2016 | Dec. 27, 2015 | Mar. 29, 2015 |
Not Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Net unrealized gain (loss) | $ (141) | $ (1,044) | $ 1,060 |
Not Designated as Hedging Instrument [Member] | Prepaid expenses and other current assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 0 | 0 | 1,088 |
Unrealized losses | 0 | 0 | (28) |
Net unrealized gain (loss) | 0 | 0 | 1,060 |
Not Designated as Hedging Instrument [Member] | Accrued liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 321 | 416 | 0 |
Unrealized losses | (462) | (1,460) | 0 |
Net unrealized gain (loss) | (141) | (1,044) | 0 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Net unrealized gain (loss) | 65,929 | 107,438 | 125,977 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Prepaid expenses and other current assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 53,774 | 78,910 | 74,219 |
Unrealized losses | (6,890) | (5,932) | (10,253) |
Net unrealized gain (loss) | 46,884 | 72,978 | 63,966 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Other Assets [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 26,454 | 35,366 | 66,438 |
Unrealized losses | (3,618) | (710) | (914) |
Net unrealized gain (loss) | 22,836 | 34,656 | 65,524 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Accrued liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 1,900 | 0 | 3,149 |
Unrealized losses | (3,086) | 0 | (6,662) |
Net unrealized gain (loss) | (1,186) | 0 | (3,513) |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Other liabilities [Member] | |||
Derivatives, Fair Value [Line Items] | |||
Unrealized gains | 1,349 | 241 | 0 |
Unrealized losses | (3,954) | (437) | 0 |
Net unrealized gain (loss) | $ (2,605) | $ (196) | $ 0 |
Derivative Financial Instrume35
Derivative Financial Instruments, Gain (Loss) by Hedging Relationship, by Income Statement Location (Details) - Foreign Exchange Forward [Member] - Cash Flow Hedging [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion | $ 15,803 | $ 8,752 |
Cost of Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion | 15,698 | 10,063 |
Sales [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion | 98 | (1,354) |
Royalties and Other [Member] | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Derivative Instruments, Gain (Loss) Reclassified from Accumulated OCI into Income, Effective Portion | $ 7 | $ 43 |
Segment Reporting, Net revenues
Segment Reporting, Net revenues by segment (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 27, 2016 | Mar. 29, 2015 | ||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenues, external | $ 831,180 | $ 713,500 | |
Net revenues, affiliates | 0 | 0 | |
Operating Profit (Loss) | 85,916 | 54,205 | |
Corporate and Eliminations [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenues, external | 0 | 0 | |
Net revenues, affiliates | (303,334) | (241,398) | |
Operating Profit (Loss) | [1] | (4,158) | (1,741) |
U.S. and Canada [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenues, external | 443,648 | 345,690 | |
Net revenues, affiliates | 1,444 | 1,050 | |
Operating Profit (Loss) | 78,335 | 41,423 | |
International [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenues, external | 345,037 | 305,713 | |
Net revenues, affiliates | 0 | 96 | |
Operating Profit (Loss) | 2,853 | 1,903 | |
Entertainment and Licensing [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenues, external | 42,495 | 60,631 | |
Net revenues, affiliates | 4,701 | 3,409 | |
Operating Profit (Loss) | 5,442 | 16,402 | |
Global Operations [Member] | |||
Segment Reporting, Revenue Reconciling Item [Line Items] | |||
Net revenues, external | [2] | 0 | 1,466 |
Net revenues, affiliates | [2] | 297,189 | 236,843 |
Operating Profit (Loss) | [2] | $ 3,444 | $ (3,782) |
[1] | 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 b etween 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-comp any balance sheet amounts. | ||
[2] | The Global Operations segment derives substantially all of its revenues, and thus its operating results, from intersegment activities. |
Segment Reporting, Total assets
Segment Reporting, Total assets by segments (Details) - USD ($) $ in Thousands | Mar. 27, 2016 | Dec. 27, 2015 | Mar. 29, 2015 | |
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | $ 4,364,695 | $ 4,720,717 | $ 4,247,116 | |
Corporate and Eliminations [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | [1] | (3,408,370) | (3,257,295) | (4,402,247) |
U.S. and Canada [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 2,751,504 | 2,654,270 | 3,430,196 | |
International [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 1,983,747 | 2,345,847 | 2,088,096 | |
Entertainment and Licensing [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | 614,003 | 567,753 | 800,337 | |
Global Operations [Member] | ||||
Segment Reporting, Asset Reconciling Item [Line Items] | ||||
Total assets | $ 2,423,811 | $ 2,410,142 | $ 2,330,734 | |
[1] | 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 b etween 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-comp any balance sheet amounts. |
Segment Reporting, Internationa
Segment Reporting, International Segment Net Revenues (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | $ 831,180 | $ 713,500 |
International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | 345,037 | 305,713 |
Europe [Member] | International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | 224,123 | 195,871 |
Latin America [Member] | International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | 55,596 | 57,608 |
Asia Pacific [Member] | International [Member] | ||
Revenues from External Customers and Long-Lived Assets [Line Items] | ||
Net revenue | $ 65,318 | $ 52,234 |
Segment Reporting, Revenue by P
Segment Reporting, Revenue by Products (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 27, 2016 | Mar. 29, 2015 | |
Revenue from External Customer [Line Items] | ||
Net revenue | $ 831,180 | $ 713,500 |
Boys [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 336,855 | 272,598 |
Games [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 231,142 | 235,649 |
Girls [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue | 165,353 | 117,127 |
Preschool [Member] | ||
Revenue from External Customer [Line Items] | ||
Net revenue | $ 97,830 | $ 88,126 |