Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 25, 2016 | Feb. 06, 2017 | Jun. 24, 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 Public Float | $ 9,397,351,462 | ||
Entity Common Stock, Shares Outstanding | 124,297,758 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 25, 2016 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 25, 2016 | Dec. 27, 2015 |
Current assets | ||
Cash and cash equivalents | $ 1,282,285 | $ 976,750 |
Accounts receivable, less allowance for doubtful accounts of $16,800 in 2016 and $14,900 in 2015 | 1,319,963 | 1,217,850 |
Inventories | 387,675 | 384,492 |
Prepaid expenses and other current assets | 237,684 | 286,506 |
Total current assets | 3,227,607 | 2,865,598 |
Property, plant and equipment, net | 267,398 | 237,527 |
Other assets | ||
Goodwill | 570,555 | 592,695 |
Other intangibles, net | 245,949 | 280,807 |
Other | 779,857 | 744,090 |
Total other assets | 1,596,361 | 1,617,592 |
Total assets | 5,091,366 | 4,720,717 |
Current liabilities | ||
Short-term borrowings | 172,582 | 164,563 |
Current portion of long-term debt | 349,713 | 0 |
Accounts payable | 319,525 | 241,210 |
Accrued liabilities | 776,039 | 658,874 |
Total current liabilities | 1,617,859 | 1,064,647 |
Long-term debt | 1,198,679 | 1,547,115 |
Other liabilities | 389,388 | 404,883 |
Total liabilities | 3,205,926 | 3,016,645 |
Redeemable Noncontrolling Interests | 22,704 | 40,170 |
Shareholders' equity | ||
Preference stock of $2.50 par value. Authorized 5,000,000 shares; none issued | 0 | 0 |
Common stock of $0.50 par value. Authorized 600,000,000 shares; issued 209,694,630 shares in 2016 and 2015 | 104,847 | 104,847 |
Additional paid-in capital | 985,418 | 893,630 |
Retained earnings | 4,148,722 | 3,852,321 |
Accumulated other comprehensive loss | (194,570) | (146,001) |
Treasury stock, at cost, 85,207,677 shares in 2016 and 84,899,200 shares in 2015 | (3,181,681) | (3,040,895) |
Total shareholders' equity | 1,862,736 | 1,663,902 |
Total liabilities, redeemable noncontrolling interests and shareholders' equity | $ 5,091,366 | $ 4,720,717 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 25, 2016 | Dec. 27, 2015 |
Current assets | ||
Accounts receivable, allowance for doubtful accounts | $ 16,800 | $ 14,900 |
Less accumulated depreciation | $ 383,713 | $ 363,601 |
Shareholders' equity | ||
Preference stock, par value (in dollars per share) | $ 2.5 | $ 2.5 |
Preference stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preference stock, shares issued (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.5 | $ 0.5 |
Common stock, shares authorized (in shares) | 600,000,000 | 600,000,000 |
Common stock, shares issued (in shares) | 209,694,630 | 209,694,630 |
Treasury stock, at cost, shares (in shares) | 85,207,677 | 84,899,200 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Consolidated Statements of Operations [Abstract] | |||
Net revenues, external | $ 5,019,822 | $ 4,447,509 | $ 4,277,207 |
Costs and expenses | |||
Cost of sales | 1,905,474 | 1,677,033 | 1,698,372 |
Royalties | 409,522 | 379,245 | 305,317 |
Product development | 266,375 | 242,944 | 222,556 |
Advertising | 468,940 | 409,388 | 420,256 |
Amortization of intangibles | 34,763 | 43,722 | 52,708 |
Program production cost amortization | 35,931 | 42,449 | 47,086 |
Selling, distribution and administration | 1,110,769 | 960,795 | 895,537 |
Total expenses | 4,231,774 | 3,755,576 | 3,641,832 |
Operating profit | 788,048 | 691,933 | 635,375 |
Non-operating (income) expense | |||
Interest Expense | 97,405 | 97,122 | 93,098 |
Interest income | (9,367) | (3,145) | (3,759) |
Other expense (income), net | 7,521 | (5,959) | 6,048 |
Total non-operating expense, net | 95,559 | 88,018 | 95,387 |
Earnings before income taxes | 692,489 | 603,915 | 539,988 |
Income taxes | 159,338 | 157,043 | 126,678 |
Net earnings | 533,151 | 446,872 | 413,310 |
Net Loss Attributable to Noncontrolling Interests | (18,229) | (4,966) | (2,620) |
Net Earnings Attributable to Hasbro, Inc. | $ 551,380 | $ 451,838 | $ 415,930 |
Net earnings attributable to Hasbro, Inc. per common share: | |||
Basic (in dollars per share) | $ 4.4 | $ 3.61 | $ 3.24 |
Diluted (in dollars per share) | 4.34 | 3.57 | 3.2 |
Cash dividends declared (in dollars per share) | $ 2.04 | $ 1.84 | $ 1.72 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Earnings - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Consolidated Statements of Comprehensive Earnings [Abstract] | |||
Net earnings | $ 533,151 | $ 446,872 | $ 413,310 |
Other comprehensive earnings (loss): | |||
Foreign currency translation adjustments | (5,033) | (95,694) | (65,970) |
Unrealized holding (losses) gains on available-for-sale securities, net of tax | 166 | (642) | 1,900 |
Net gains (losses) on cash flow hedging activities, net of tax | 25,748 | 86,155 | 47,600 |
Changes in unrecognized pension and postretirement amounts, net of tax | (20,829) | 6,892 | (51,206) |
Reclassifications to earnings, net of tax: | |||
Net (gains) losses on cash flow hedging activities | (53,980) | (50,527) | 3,402 |
Amortization of unrecognized pension and postretirement amounts | 5,359 | 3,269 | 2,955 |
Other comprehensive earnings (loss) | 52 | (3,289) | (67,676) |
Total comprehensive earnings | 484,582 | 396,325 | 351,991 |
Total comprehensive loss attributable to noncontrolling interests | (18,229) | (4,966) | (2,620) |
Total comprehensive earnings attributable to Hasbro, Inc. | $ 502,811 | $ 401,291 | $ 354,611 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Cash flows from operating activities | |||
Net earnings | $ 533,151 | $ 446,872 | $ 413,310 |
Adjustments to reconcile net earnings to net cash provided by operating activities: | |||
Depreciation of plant and equipment | 119,707 | 111,605 | 105,258 |
Amortization of intangibles | 34,763 | 43,722 | 52,708 |
Impairment of Goodwill | 32,858 | 0 | |
Program production cost amortization | 35,931 | 42,449 | 47,086 |
Deferred income taxes | (662) | (18,954) | (9,755) |
Stock-based compensation | 61,624 | 53,880 | 36,152 |
Changes in operating assets and liabilities net of acquired and disposed balances: | |||
Increase in accounts receivable | (149,923) | (227,808) | (112,366) |
Increase in inventories | (12,065) | (99,353) | (28,944) |
Decrease (increase) in prepaid expenses and other current assets | 7,422 | 83,124 | 30,760 |
Program Production Costs | (48,690) | (42,506) | (31,424) |
Increase (decrease) in accounts payable and accrued liabilities | 203,783 | 149,663 | (957) |
Other, including long-term advances | (43,026) | 9,751 | (47,417) |
Net cash provided by operating activities | 774,873 | 552,445 | 454,411 |
Cash flows from investing activities | |||
Additions to property, plant and equipment | (154,900) | (142,022) | (113,388) |
Investments and acquisitions, net of cash acquired | (12,436) | 0 | 0 |
Cash proceeds from dispositions | 0 | 18,632 | 64,400 |
Other investing activities | 28,945 | 19,743 | 48,503 |
Net cash utilized by investing activities | (138,391) | (103,647) | (485) |
Cash flows from financing activities | |||
Net proceeds from borrowings with maturity greater than three months | 0 | 0 | 559,986 |
Repayments of borrowings with maturity greater than three months | 0 | 0 | (425,000) |
Net proceeds from (repayments of) other short-term borrowings | 8,978 | (87,310) | 246,054 |
Purchases of common stock | (150,075) | (87,224) | (459,564) |
Stock option transactions | 42,207 | 43,322 | 60,519 |
Excess tax benefits from stock-based compensation | 20,471 | 14,228 | 10,914 |
Dividends paid | (248,881) | (225,797) | (216,855) |
Other financing activities | (5,758) | (3,676) | (7,010) |
Net cash utilized by financing activities | (333,058) | (346,457) | (230,956) |
Effect of exchange rate changes on cash | 2,111 | (18,758) | (12,252) |
Increase (decrease) in cash and cash equivalents | 305,535 | 83,583 | 210,718 |
Cash and cash equivalents at beginning of year | 976,750 | 893,167 | 682,449 |
Cash and cash equivalents at end of year | 1,282,285 | 976,750 | 893,167 |
Supplemental information | |||
Interest paid | 88,525 | 93,106 | 106,755 |
Income taxes paid | $ 98,913 | $ 144,137 | $ 182,158 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss) Earnings [Member] | Treasury Stock [Member] | Total Shareholders' Equity Attributable to Hasbro, Inc. [Member] | Redeemable Noncontrolling Interests [Member] |
Balance at Dec. 29, 2013 | $ 104,847 | $ 734,181 | $ 3,432,176 | $ (34,135) | $ (2,554,726) | $ 1,682,343 | $ 45,445 | |
Net earnings attributable to Hasbro, Inc. | $ 415,930 | 415,930 | 415,930 | |||||
Net Loss Attributable to Noncontrolling Interests | (2,620) | (2,620) | ||||||
Other comprehensive (loss) earnings | (67,676) | (61,319) | (61,319) | |||||
Stock-based compensation transactions | 36,063 | 35,370 | 71,433 | |||||
Purchases of common stock | (460,841) | (460,841) | ||||||
Stock-based compensation expense | 36,021 | 131 | 36,152 | |||||
Dividends declared | (218,034) | (218,034) | ||||||
Contributions From (Distributions To) Noncontrolling Interests, Total | 0 | (95) | ||||||
Balance at Dec. 28, 2014 | 104,847 | 806,265 | 3,630,072 | (95,454) | (2,980,066) | 1,465,664 | 42,730 | |
Net earnings attributable to Hasbro, Inc. | 451,838 | 451,838 | 451,838 | |||||
Net Loss Attributable to Noncontrolling Interests | (4,966) | 0 | (4,966) | |||||
Other comprehensive (loss) earnings | (3,289) | (50,547) | (50,547) | |||||
Stock-based compensation transactions | 33,558 | 23,992 | 57,550 | |||||
Purchases of common stock | (84,894) | (84,894) | ||||||
Stock-based compensation expense | 53,807 | 73 | 53,880 | |||||
Dividends declared | (229,589) | (229,589) | ||||||
Contributions From (Distributions To) Noncontrolling Interests, Total | 0 | 2,406 | ||||||
Balance at Dec. 27, 2015 | 1,663,902 | 104,847 | 893,630 | 3,852,321 | (146,001) | (3,040,895) | 1,663,902 | 40,170 |
Net earnings attributable to Hasbro, Inc. | 551,380 | 551,380 | ||||||
Net Loss Attributable to Noncontrolling Interests | (18,229) | 0 | (18,229) | |||||
Other comprehensive (loss) earnings | 52 | (48,569) | (48,569) | |||||
Stock-based compensation transactions | 30,230 | 10,479 | 40,709 | |||||
Purchases of common stock | (151,331) | (151,331) | (151,331) | |||||
Stock-based compensation expense | 61,558 | 66 | 61,624 | |||||
Dividends declared | (254,979) | (254,979) | ||||||
Contributions From (Distributions To) Noncontrolling Interests, Total | 0 | 763 | ||||||
Balance at Dec. 25, 2016 | $ 1,862,736 | $ 104,847 | $ 985,418 | $ 4,148,722 | $ (194,570) | $ (3,181,681) | $ 1,862,736 | $ 22,704 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 25, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | (1) Summary of Significant Accounting Policies Preparation of Consolidated Financial Statements The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and notes thereto. Actual results could differ from those estimates. Principles of Consolidation The consolidated finan cial statements include the accounts of Hasbro, Inc. and all majority-owned subsidiaries ("Hasbro" or the "Company"). Investments representing 20 % to 50 % ownership interests in other companies are accounted for using the equity method. For those majorit y-owned subsidiaries that are not 100% owned by Hasbro, the interests of the minority owners are accounted for as noncontrolling interests. All intercompany balances and transactions have been eliminated. Fiscal Year Hasbro's fiscal year ends on the last Sunday in December. The fiscal years ended December 25, 2016, December 27, 2015 and December 28, 2014 were fifty-two week periods. Cash and Cash Equivalents Cash and cash equivalents include all cash balances and highly liquid investments purchase d with a maturity to the Company of three months or less. Marketable Securities Included in marketable securities are investments in private investment funds. These investments are included in prepaid expenses and other current assets in the accompanying consolidated balance sheets, and, due to the nature and business purpose of these investments, the Company has selected the fair value option which requires the Company to record the unrealized gains and losses on these investments in the cons olidated statements of operations at the time they occur. Marketable securities also include common stock in a public company arising from a business relationship. This investment is also included in prepaid expenses and other current assets in the accom panying consolidated balance sheets; however, due to its nature and business purpose, the Company records unrealized gains and losses on this investment in accumulated other comprehensive loss in the consolidated balance sheets until it is sold at which po int the realized gains or losses will be recognized in the consolidated statements of operations. Accounts Receivable and Allowance for Doubtful Accounts Credit is granted to customers predominantly on an unsecured basis. Credit limits and payment terms are established based on extensive evaluations made on an ongoing basis throughout the fiscal year with regard to the financial performance, cash generation, financing availability and liquidity status of each customer. The majority of customers are forma lly reviewed at least annually; more frequent reviews are performed based on the customer’s financial condition and the level of credit being extended. For customers on credit who are experiencing financial difficulties, management performs additional fina ncial analyses before shipping orders. The Company uses a variety of financial transactions, based on availability and cost, to increase the collectability of certain of its accounts, including letters of credit, credit insurance, and requiring cash in adv ance of shipping. The Company records an allowance for doubtful accounts based on management’s assessment of the business environment, customers’ financial condition, historical collection experience, accounts receivable aging and customer disputes. When a significant event occurs, such as a bankruptcy filing by a specific customer, and on a quarterly basis, the allowance is reviewed for adequacy and the balance is adjusted to reflect current risk assessments. Accounts receivable, net on the consolidat ed balance sheet represents amounts due from customers less the allowance for doubtful accounts as well as allowances for discounts, rebates and returns. Inventories Inventories are valued at the lower of cost (first-in, first-out) or market. Based upon a consideration of quantities on hand, actual and projected sales volume, anticipated product selling price and product lines planned to be discontinued, slow-moving and obsolete inventory is written down to its estimated net realizable value. At both Dece mber 25, 2016 and December 27, 2015, substantially all inventory is comprised of finished goods. Equity Method Investment For the Company’s equity method investments, only the Company’s investment in and amounts due to and from the equity method investment are included in the consolidated balance sheets and only the Company’s share of the equity method investment's earnings (losses) is included in other expense, net in the consolidated statements of operations. Dividends, cash distributions, loans or other cash received from the equity method investment, additional cash investments, loan repayments or other cash paid to the investee are included in the consolidated statements of cash flows. The Company reviews its equity method investments for im pairment on a periodic basis. If it has been determined that the fair value of the equity investment is less than its related carrying value and that this decline is other-than-temporary, the carrying value of the investment is adjusted downward to reflect these declines in value. The Company has one significant equity method investment, its 40 % interest in a joint venture with Discovery Communications, Inc. ("Discovery"). The Company and Discovery are party to an option agreement with respect to this join t venture. The Company has recorded a liability for this option agreement at fair value which is included in other liabilities in the consolidated balance sheets. Unrealized gains and losses on this option are recognized in the consolidated statements of o perations as they occur. See notes 5 and 12 for additional information. Redeemable Noncontrolling Interests Redeemable noncontrolling interests are those noncontrolling interests which are or may become redeemable at a fixed or determinable price on a fixed or determinable date, at the option of the holder, or upon occurrence of an event. The financial results and position of the redeemable noncontrolling interest are included in their entirety in the Company’s consolidated statements of operations and consolidated balance sheets. The value of the redeemable noncontrolling interests is presented in the consolidated balance sheets as temporary equity between liabilities and shareholders’ equity. Earnings (losses) attributable to the noncontrolling interes t are presented as a separate line on the consolidated statements of operations which is necessary to identify those earnings specifically attributable to Hasbro. Through 2016 , the Company had one investment with a redeemable noncontrolling interest which was the Company’s 70% majority interest in Backflip Studios, LLC (“Backflip”). Under the terms of our agreement with Backflip, the Company may have been required to acquire the remaining 30% in the future contingent on the achievement by Backflip of certai n predetermined financial performance metrics (the “metrics”). Because the Company did not know the ultimate timing that these metrics would be met and, thereby, could not estimate the purchase price of the remaining 30%, the value reported reflects the f air value of the redeemable noncontrolling interest on the date of acquisition which has been adjusted for cumulative earnings (losses) attributable to the noncontrolling interest since the date of acquisition as well as capital contributions made by or di stributions made to the noncontrolling interest since the acquisition. During the first quarter of 2017, the remaining 30% of Bac kflip Studios was acquired by Hasbro for no additional consideration, making it a wholly- owned subsidiary of the Company . Property, Plant and Equipment, Net Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using accelerated and straight-line methods to depreciate the cost of property, plant and equipment over their est imated useful lives. The principal lives, in years, used in determining depreciation rates of various assets are: land improvements 15 to 19, buildings and improvements 15 to 25 and machinery and equipment (including computer hardware and software) 3 to 12 . Depreciation expense is classified in the consolidated statements of operations based on the nature of the property and equipment being depreciated. Tools, dies and molds are depreciated over a three-year period or their useful lives, whichever is less, using an accelerated method. The Company generally owns all tools, dies and molds related to its products. Property, plant and equipment, net is reviewed for impairment whenever events or circumstances indicate the carrying value may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the asset to future undiscounted cash flows expected to be generated by the asset or asset group. If such assets are considered to be impaired, the impairment to be recognized would be m easured by the amount by which the carrying value of the assets exceeds their fair value wherein the fair value is the appraised value. Furthermore, assets to be disposed of are carried at the lower of the net book value or their estimated fair value less disposal costs. Goodwill and Other Intangibles, Net Goodwill results from acquisitions the Company has made over time. Substantially all of the other intangibles consist of the cost of acquired product rights. In establishing the value of such rights, the Company considers existing trademarks, copyrights, patents, license agreements and other product-related rights. These rights were valued on their acquisition date based on the anticipated future cash flows from the underlying product line. The Company has certain intangible assets related to the Tonka and Milton Bradley acquisitions that have an indefinite life. Goodwill and intangible assets deemed to have indefinite lives are not amortized and are tested for impairment at least annually. The annual test begins with goodwill and all intangible assets being allocated to applicable reporting units. This quantitative two-step process begins with an estimation of fair value of the reporting unit using an income approach, which looks to the present value of expected future cash flows. The first step is a screen for potential impairment while the second step measures the amount of impairment if there is an indication from the first step that one exists. When performing the quantitative two-step impairment t est, goodwill and intangible assets with indefinite lives are tested for impairment by comparing their carrying value to their estimated fair value, also calculated using the present value of expected future cash flows. The Company may bypass the quantita tive two-step impairment process and perform a qualitative assessment if it is not more likely than not that impairment exists. Performing a qualitative assessment of goodwill requires a high degree of judgment regarding assumptions underlying the valuatio n. Qualitative factors and their impact on critical inputs are assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. During the fourth quarter of 2016, the Company performed a qualitative assessment with respect to goodwill associated with all but one of its reporting units and determined that it was not necessary to perform a quantitative assessment for the goodwill of these reporting units. The Company also performed quantitative two-step annual impairment tests related to its intangible assets with indefinite lives, as well as goodwill associated with Backflip, the Company's majority owned mobile gaming reporting unit. As a result of the annual impairment test, the Company concluded the goodwill associated with the Backflip reporting unit was impaired and recorded a non-cash impa irment charge of $32,858. No other impairments were indicated as the estimated fair values were in excess of the carrying value of the related intangible assets or reporting units, as applicable. See further discussion in note 4. The remaining intangibles having defined lives are being amortized over periods ranging from four to twenty years, primarily using the straight-line method . The Company reviews other intangibles with defined lives for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the asset to future undiscounted cash flows expected to be generated by the asset or asset group. If such assets were considered to be impaired, the impairment to be recognized would be measured by the amount by which the carrying v alue of the assets exceeds their fair value wherein that fair value is determined based on discounted cash flows. Financial Instruments Hasbro's financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, account s payable and certain accrued liabilities. At December 25, 2016, the carrying cost of these instruments approximated their fair value. The Company's financial instruments at December 25, 2016 also include long-term borrowings (see note 9 for carrying cost and related fair values) as well as certain assets and liabilities measured at fair value (see notes 12 and 16). Revenue Recognition Revenue from product sales is recognized upon the passing of title to the customer, generally at the time of shipment. Pr ovisions for discounts, rebates and returns are made when the related revenues are recognized. The Company bases its estimates for discounts, rebates and returns on agreed customer terms and historical experience. The Company enters into arrangements lice nsing its brands on specifically approved products or formats. The licensees pay the Company royalties based on their revenues derived from the brands, in some cases subject to minimum guaranteed amounts. Royalty revenues are recognized as they are reporte d as earned and payment becomes assured, over the life of the license agreement. The Company produces television programming for license to third parties. Revenues from the distribution of television and other programming are recorded when the use of the content may be directed by the distributor and when certain other conditions are met. Revenue from product sales less related provisions for discounts, rebates and returns, as well as royalty, television programming and digital gaming revenues comprise n et revenues in the consolidated statements of operations. Costs of Sales Cost of sales primarily consists of purchased materials, labor, tooling, manufacturing overheads and other inventory-related costs such as obsolescence. Royalties The Company ent ers into license agreements with strategic partners, inventors, designers and others for the use of intellectual properties in its products. These agreements may call for payment in advance or future payment of minimum guaranteed amounts. Amounts paid in a dvance are recorded as an asset and charged to expense when the related revenue is recognized in the consolidated statements of operations. If all or a portion of the minimum guaranteed amounts appear not to be recoverable through future use of the rights obtained under the license, the non-recoverable portion of the guaranty is charged to expense at that time. Advertising Production costs of commercials are expensed in the fiscal year during which the production is first aired. The costs of other advert ising and promotion programs are expensed in the fiscal year incurred. Program Production Costs The Company incurs costs in connection with the production of television programming and motion pictures. These costs are capitalized by the Company as they are incurred and amortized using the individual-film-forecast method, whereby these costs are amortized in the proportion that the current year’s revenues bear to management’s estimate of total ultimate revenues as of the beginning of such period related t o the program. These capitalized costs are reported at the lower of cost, less accumulated amortization, or fair value, and reviewed for impairment when an event or change in circumstances occurs that indicates that impairment may exist. The fair value is determined using a discounted cash flow model which is primarily based on management’s future revenue and cost estimates. Shipping and Handling Hasbro expenses costs related to the shipment and handling of goods to customers as incurred. For 2016, 2015 and 2014, these costs were $ 180,270 , $ 159,854 and $ 157,326 , respectively, and are included in selling, distribution and administration expenses. Operating Leases Hasbro records lease expense on a straight-line basis inclusive of rent concessions and in creases. Reimbursements from lessors for leasehold improvements are deferred and recognized as a reduction to lease expense over the remaining lease term. Income Taxes Hasbro uses the asset and liability approach for financial accounting and reporting o f income taxes. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred taxes are measured using rates expected to apply to taxable income in years in which those temporary differences are expected to reverse. A valuation allowance is provided for deferred tax assets if it is more likely than not such assets will be unrealized. Deferred income taxes have not been provided on the majority of undistributed earnings of international subsidiaries as the majority of such earnings are indefinitely reinvested by the Company. The Company uses a two-step process for the measurement of uncertain tax positions that have been taken or are expected to be taken in a tax return. The first step is a determination of whether the tax position should be recognized in the consolidated financial statements. The second step determines the measurement of the tax position. The Company records potential interest and penalties on uncertain tax positions as a component of income tax expense. Foreign Currency Translation Foreign currency assets and liabilities are translated into U.S. dollars at period-end exchange rates, and revenues, costs and expenses are translated at weighted average exchange rates during each reporting period. Net earnings include gains or losses res ulting from foreign currency transactions and, when required, translation gains and losses resulting from the use of the U.S. dollar as the functional currency in highly inflationary economies. Other gains and losses resulting from translation of financial statements are a component of other comprehensive earnings (loss). Pension Plans, Postretirement and Postemployment Benefits Pension expense and related amounts in the consolidated balance sheets are based on actuarial computations of current and future benefits. Actual results that differ from the actuarial assumptions are accumulated and, if outside a certain corridor, amortized over future periods and, therefore affect recognized expense in future periods. The corridor used for this purpose is equal t o 10% of the greater of plan liabilities or market asset values, and future periods vary by plan, but generally equal the actuarially determined average expected future working lifetime of active plan participants. The Company's policy is to fund amounts which are required by applicable regulations and which are tax deductible. The estimated amounts of future payments to be made under other retirement programs are being accrued currently over the period of active employment and are also included in pension expense. Hasbro has a contributory postretirement health and life insurance plan covering substantially all employees who retire under any of its United States defined benefit pension plans and meet certain age and length of service requirements. The cost of providing these benefits on behalf of employees who retired prior to 1993 is and will continue to be substantially borne by the Company. The cost of providing benefits on behalf of substantially all employees who retire after 1992 is borne by the emplo yee. It also has several plans covering certain groups of employees, which may provide benefits to such employees following their period of employment but prior to their retirement. The Company measures the costs of these obligations based on actuarial co mputations. Stock-Based Compensation The Company has a stock-based employee compensation plan for employees and non-employee members of the Company's Board of Directors. Under this plan the Company may grant stock options at or above the fair market value of the Company’s stock, as well as restricted stock, restricted stock units and contingent stock performance awards. All awards are measured at fair value at the date of the grant and amortized as expense on a straight-line basis over the requisite s ervice period of the award. For awards contingent upon Company performance, the measurement of the expense for these awards is based on the Company’s current estimate of its performance over the performance period. For awards contingent upon the achievemen t of market conditions, the probability of satisfying the market condition is considered in the estimation of the grant date fair value. See note 13 for further discussion. In March 2016, the FASB issued Accounting Standards Update No. 2016-09 (ASU 2016-0 9) Compensation - Stock Compensation (Topic 718), which simplifies the accounting for income taxes related to stock-based compensation. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2016, and ear ly adoption is permitted. Under the new standard, the Company will elect to recognize forfeitures as they occur. Based upon the Company’s history of forfeitures, it is not expected that this election will have a material impact on its financial statements however, as any impact will be based on future forfeitures, the actual impact could differ from the Company’s expectation. The impact of the other aspects of ASU 2016-09 are based on the Company’s future stock price at the date of vesting or exercise of s hare-based payments as well as the timing of exercises and, as such, the Company cannot estimate the impact of these aspects, other than to expect that the adoption of this standard will benefit future tax expense in the short term, the extent to which can not be reasonably estimated at this time, nor can we estimate whether such benefits will continue or will result in increased tax expense in the longer term. Risk Management Contracts 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 purchases of inventory and other cross-border currency requirements not denominated in the functional currency of the business unit, are primarily denominated in United States and Hong Kong dollars as well as Euros. All contracts are entered into with a number of counterparties, all of which are major financial institutions. The Company believes that a de fault by a 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. At the inception of the contracts, Hasbro designates its derivatives as either cash flow or fair value hedges. The Company formally documents all relationships between hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking various hedge transactions. All hed ges designated as cash flow hedges are linked to forecasted transactions and the Company assesses, both at the inception of the hedge and on an on-going basis, the effectiveness of the derivatives used in hedging transactions in offsetting changes in the c ash flows of the forecasted transaction. The ineffective portion of a hedging derivative, if any, is immediately recognized in the consolidated statements of operations. The Company records all derivatives, such as foreign currency exchange contracts, o n the consolidated balance sheets at fair value. Changes in the derivative fair values that are designated as cash flow hedges and are effective are deferred and recorded as a component of Accumulated Other Comprehensive Loss (“AOCE”) until the hedged tran sactions occur and are then recognized in the consolidated statements of operations. The Company's foreign currency contracts hedging anticipated cash flows are designated as cash flow hedges. When it is determined that a derivative is not highly effective as a hedge, the Company discontinues hedge accounting prospectively. Any gain or loss deferred through that date remains in AOCE until the forecasted transaction occurs, at which time it is reclassified to the consolidated statements of operations. To the extent the transaction is no longer deemed probable of occurring, hedge accounting treatment is discontinued and amounts deferred would be reclassified to the consolidated statements of operations. In the event hedge accounting requirements are not met, g ains and losses on such instruments are included currently in the consolidated statements of operations. The Company uses derivatives to economically hedge intercompany loans denominated in foreign currencies. The Company does not use hedge accounting for these contracts as changes in the fair value of these contracts are substantially offset by changes in the fair value of the intercompany loans. Prior to the issuance of the Notes Due 2021 and Notes Due 2044, the Company entered into a forward-starting i nterest rate swap contract to hedge the anticipated U.S. Treasury interest rates on the anticipated debt issuance. These instruments, which were designated and effective as hedges, were terminated on the date of the related debt issuance and the then fair value of these instruments was recorded to AOCE and will be amortized through the consolidated statements of operations using an effective interest rate method over the life of the related debt. Net Earnings Per Common Share Basic net earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding for the year as well as awards that have not been issued but all contingencies have been met. Diluted net earnings per share is similar except that the weighted aver age number of shares outstanding is increased by dilutive securities, and net earnings are adjusted, if necessary, for certain amounts related to dilutive securities. Dilutive securities include shares issuable upon exercise of stock options for which the market price exceeds the exercise price, less shares which could have been purchased by the Company with the related proceeds. Dilutive securities also include shares issuable under restricted stock unit award agreements. Options and restricted stock unit awards totaling 277 and 674 for 2016 and 2 0 14, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been antidilutive . There were no antidilutive stock options or restricted stock unit awards to exclude from the diluted earnings per share calculation in 2015. 2016 2015 2014 Basic Diluted Basic Diluted Basic Diluted Net earnings attributable to Hasbro, Inc. $ 551,380 551,380 451,838 451,838 415,930 415,930 Average shares outstanding 125,292 125,292 125,006 125,006 128,411 128,411 Effect of dilutive securities: Options and other share-based awards – 1,674 – 1,682 – 1,475 Equivalent shares 125,292 126,966 125,006 126,688 128,411 129,886 Net earnings attributable to Hasbro, Inc. per share $ 4.40 4.34 3.61 3.57 3.24 3.20 |
Other Comprehensive Earnings
Other Comprehensive Earnings | 12 Months Ended |
Dec. 25, 2016 | |
Other comprehensive earnings (loss) [Abstract] | |
Other Comprehensive Earnings (Loss) | (2) 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 three years ended December 25, 2016. 2016 2015 2014 Other comprehensive earnings (loss), tax effect: Tax benefit (expense) on cash flow hedging activities $ 1,340 (11,190) 8,259 Tax (expense) benefit on unrealized holding gains (94) 364 (1,077) Tax benefit (expense) on unrecognized pension and postretirement amounts 12,945 (928) 23,869 Reclassifications to earnings, tax effect: Tax (benefit) expense on cash flow hedging activities 4,098 5,435 (2,488) Tax (benefit) expense on unrecognized pension and postretirement amounts reclassified to the consolidated statements of operations (3,038) (1,861) (1,327) Total tax effect on other comprehensive earnings (loss) $ 15,251 (8,180) 27,236 In 2016, 2015 and 2014, net gains on cash flow hedging activities reclassified to earnings, net of tax, included gains of $ 1, 428 , $ 1,111 and $ 58 , respectively, as a result of hedge ineffectiveness. Changes in the components of accumulated other comprehensive earnings (loss), net of tax are as follows: Unrealized Gains Holding Gains Foreign Total Accumulated Pension and (Losses) on 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 (20,829) 25,748 166 (5,033) 52 earnings (loss) Reclassifications from AOCE to earnings 5,359 (53,980) — — (48,621) Balance at December 25, 2016 $ (118,401) 51,085 1,424 (128,678) (194,570) 2015 Balance at December 28, 2014 $ (113,092) 43,689 1,900 (27,951) (95,454) Current period other comprehensive 6,892 86,155 (642) (95,694) (3,289) earnings (loss) Reclassifications from AOCE to earnings 3,269 (50,527) — — (47,258) Balance at December 27, 2015 $ (102,931) 79,317 1,258 (123,645) (146,001) 2014 Balance at December 29, 2013 $ (64,841) (7,313) — 38,019 (34,135) Current period other comprehensive (51,206) 47,600 1,900 (65,970) (67,676) earnings (loss) Reclassifications from AOCE to earnings 2,955 3,402 — — 6,357 Balance at December 28, 2014 $ (113,092) 43,689 1,900 (27,951) (95,454) At December 25, 2016, the Company had remaining net deferred gains on foreign currency forward contracts, net of tax, of $ 69,301 in AOCE. These instruments hedge payments related to inventory purchased in the fourth quarter of 2016 or forecasted to be purchased from 2017 through 2021, intercompany expenses expected to be paid or received during 2017, 2018 and 2019 and cash receipts for sales made at the end of 2016 or forecasted to be made in 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, royalties or expenses. In addition to foreign currency forward contracts, the Company entered into hedging contracts on future in terest 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 t he related notes using the effective interest rate method. At December 25, 2016, deferred losses, net of tax, of $ 18,216 related to these instruments remained in AOCE. For each of the years ended December 25, 2016 and December 27, 2015, losses, net of tax of $ 1,148 related to these hedging instruments were reclassified from AOCE to net earnings. Of the net deferred gains included in AOCE at December 25, 2016, the Company expects approximately $ 24,476 to be reclassified to the consolidated statements of o perations 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. See notes 14 and 16 for additional discussion on reclassifications from AOCE to ear nings. |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 25, 2016 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | (3) Property, Plant and Equipment 2016 2015 Land and improvements $ 3,096 3,954 Buildings and improvements 175,684 176,982 Machinery, equipment and software 390,720 350,471 569,500 531,407 Less accumulated depreciation 383,713 363,601 185,787 167,806 Tools, dies and molds, net of accumulated depreciation 81,611 69,721 Total property, plant and equipment, net $ 267,398 237,527 Expenditures for maintenance and repairs which do not materially extend the life of the assets are charged to operations as incurred. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 25, 2016 | |
Goodwill and Intangibles [Abstract] | |
Goodwill and Intangibles | (4) Goodwill and Intangibles Goodwill Changes in the carrying amount of goodwill, by operating segment, for the years ended December 25, 2016 and December 27, 2015 are as follows: Entertainment U.S. and Canada International and Licensing Total 2016 Balance at December 27, 2015 $ 296,978 170,110 125,607 592,695 Acquired during the period — — 11,821 11,821 Impairment during the period — — (32,858) (32,858) Foreign exchange translation — (277) (826) (1,103) Balance at December 25, 2016 $ 296,978 169,833 103,744 570,555 2015 Balance at December 28, 2014 $ 296,978 170,853 125,607 593,438 Foreign exchange translation — (743) — (743) Balance at December 27, 2015 $ 296,978 170,110 125,607 592,695 A portion of the Company's goodwill and other intangible assets reside in the Corporate segment of the business. For purposes of the goodwill impairment testing, these assets are allocated to the reporting units within the Company's operating segments. The Company performs an annual impairment test on goodwill. This annual impairment test is performed in the fourth quarter of the Company's fiscal year. In addition, if an event occurs or circumstances change that indicate that the carrying value may not b e recoverable, the Company will perform an interim impairment test at that time. During the fourth quarter of 2016 in conjunction with the Company’s annual review for impairment we completed step one of the annual goodwill impairment test for the Backfli p reporting unit. Prior to the fourth quarter of 2016, there were no triggering events that would have required the Company to test for impairment. The Company’s evaluation of the current year performance of the Backflip reporting unit was dependent in l arge part on the performance of launches that took place during the fourth quarter. Additionally, during the fourth quarter, the Company revised its expectations regarding the timing of future launches. The first step of the goodwill impairment analysis involved comparing the Backflip carrying value to its estimated fair value, which was calculated based on the Income Approach. Discounted cash flows serve as the primary basis for the Income Approach. The Company utilized forecasted cash flows for the Ba ckflip reporting unit that included assumptions including but not limited to: expected revenues to be realized based on planned future mobile game releases; expected EBITDA margins derived in part based on expected future royalty costs, advertising and mar keting costs, development costs, and overhead costs; and expected future tax rates. The cash flows beyond the forecast period were estimated using a terminal value growth rate of 3%. To calculate the fair value of the future cash flows under the Income A pproach, a discount rate of 14% was utilized, representing the reporting unit’s estimated weighted-average cost of capital. Based on the results of the step one impairment test the Company determined that the fair value of the Backflip reporting unit was below its carrying value, and therefore, impairment was indicated. Because indicators of impairment existed, the Company commenced the second step of the goodwill impairment analysis to determine the implied fair value of goodwill for the Backflip reportin g unit, which was determined in the same manner utilized to estimate the amount of goodwill recognized in a business combination. As part of the second step of the goodwill impairment analysis, the Company assigned the fair value of the Backflip reporting unit, as calculated under the first step of the goodwill impairment analysis, to all the assets and liabilities, including identifiable intangibles assets, of that reporting unit. The implied fair value of goodwill was measured as the excess of the fair value of the Backflip reporting unit over the amounts assigned to its assets and liabilities. Based on this assessment, the Company recorded an impairment charge of $32,858. A further deterioration in the forecast or assumptions discussed above could resu lt in an additional impairment charge. At December 25, 2016 there is $86,253 of remaining goodwill relate d to the Backflip reporting unit. Based on its qualitative assessment of goodwill for all reporting units with the exception of Backflip, the Company concluded there was no other impairment of goodwill during 2016. In addition, the Company completed its annual impairment tests of goodwill in the fourth quarters of 2015 and 2014 and concluded that there was no impairment of its goodwill. On July 13, 2016, the Company acquired Boulder Media Limited (“Boulder”), an animation studio based in Dublin, Ire land. The consideration included an initial cash paymen t of approximately $13,177 and provisions for future earnout payments. Based on the Company’s analysis, goodwill in the amount of $11,821 million was recorded and is reflected in the Ente rtainment and Licensing segment. Other Intangibles, Net A summary of the Company's other intangibles, net at December 25, 2016 and December 27 , 2015 : 2016 2015 Acquired product rights $ 789,689 789,781 Licensed rights of entertainment properties 256,555 256,555 Accumulated amortization (876,033) (841,267) Amortizable intangible assets 170,211 205,069 Product rights with indefinite lives 75,738 75,738 Total other intangibles, net $ 245,949 280,807 Certain intangible assets relating to rights obtained in the Company's acquisition of Milton Bradley in 1984 and Tonka in 1991 are not amortized. These rights were determined to have indefinite lives and are included as product rights with indefinite lives in the table above. The Company tests these assets for impairment on an annual basis in the fourth quarter of each year or when an event occurs or circumstances change that indicate that the carrying value may not be recoverable. The Company complete d its annual impairment tests of indefinite-lived intangible assets in the fourth quarter of 2016, 2015, and 2014 concluding that there was no impairment of these assets. The Company's other intangible assets are amortized over their remaining useful lives , and accumulated amortization of these other intangibles is reflected in other intangibles, net in the accompanying consolidated balance sheets. Intangible assets, other than those with indefinite lives, are reviewed for indications of impairment whene ver events or changes in circumstances indicate the carrying value may not be recoverable. The Company will continue to incur amortization expense related to the use of acquired and licensed rights to produce various products. A portion of the amortization of these product rights will fluctuate depending on brand activation, related rev enues during an annual period and future expectations, as well as rights reaching the end of their useful lives. The Company currently estimates amortization expense related to the above intangible assets for the next five years to be approximately: 2017 $ 29,000 2018 17,000 2019 36,000 2020 40,000 2021 18,000 |
Equity Method Investment
Equity Method Investment | 12 Months Ended |
Dec. 25, 2016 | |
Equity Method Investment [Abstract] | |
Equity Method Investment | (5) Equity Method Investment The Company owns an interest in a joint venture, Discovery Family Channel (the "Network"), with Discovery Communications, Inc. ("Discovery"). The Company has determined that it does not meet the control requirements to consolidate the Network and accounts for the investment using the equity method of accounting. The Network was established to create a cable television network in the United States dedicated to high-quality children's and family entertainment. In October 2009, the Company purchased an initial 50 % share in the Network for a payment of $ 300,000 and certain future tax payments based on the value of certain tax benefits expected to be received by the Company. On September 23, 2014, the Company and Discovery amended their relationship with respect to the Network and Discovery increased its equity interest in the Network to 60 % while the Company retained a 40% equity interest in the Network. The change in equity interests was accomplished partly through a redemption of interests owned by the Company and partly through the purchase of interests by Discovery from the Company. In connection with this reduction in its equity ownership the Company was paid a cash purchase price of $ 64,400 by Discovery. In connection with the restructuring of the Network in 2014, the Company recognized a net expense of $ 28,326 , which includes a charge resulting from an option agreement and the Company's share of severance charges and programming write-downs recognized by the Network, partially offset by a gain from the reduc tion of amounts due to Discovery under a tax sharing agreement and is primarily included in other (income) expense, net in the consolidated statements of operations. In connection with the amendment, the Company and Discovery entered into an option agree ment related to the Company's remaining 40% ownership in the Network, exercisable during the one-year period following December 31, 2021. The exercise price of the option agreement is based upon 80 % of the then fair market value of the Network, subject to a fair market value floor. In connection with the amendment, the Company recorded a charge in other expense in the third quarter of 2014, related to the then fair market value of the option agreement totaling $ 25,590 . At December 25, 2016, and December 27, 2015, the fair market value of this option was $ 28,770 and $ 28,360 , respectively and was included as a component of other liabilities. During 2016, 2015 and 2014, the Company recorded losses (gains) of $ 410 , $ 3,020 and $ (250) in other expense (income), ne t relating to the change in fair value of this option. As a result of the reduction in the Company's ownership in the Network, the Company also received a benefit from a reduction in amounts due to Discovery under the existing tax sharing agreement. The present value of the expected future payments at the acquisi tion date totaled approximately $ 67,900 and was recorded as a component of the Company's investment in the joint venture. For the year ended December 28, 2014 the Company recorded a net benefit in other expense (income), net related to the reduction in the amounts due to Discovery under the tax sharing agreement totaling $ 12,834 . The balance of the associated liability, including imputed interest, was $ 52,473 and $ 54,521 at December 25, 2016 and De cember 27, 2015, respectively, and is included as a component of other liabilities in the accompanying consolidated balance sheets. During 2016, 2015 and 2014, the Company made payments under the tax sharing agreement to Discovery of $ 6,520 , $ 4,971 and $ 7, 010 , respectively. The Company has a license agreement with the Network that requires the payment of royalties by the Company to the Network based on a percentage of revenue derived from products related to television shows broadcast by the joint venture. The license includes a minimum royalty guarantee of $ 125,000 , which was paid in five annual installments of $ 25,000 per year, commencing in 2009, which can be earned out over approximately a 10-year period. In connection with the 2014 amendment, the term s of this license were modified resulting in a benefit recorded to royalties totaling $ 2,328 in the consolidated statements of operations. As of December 25, 2016 and December 27, 2015, the Company had $ 66,017 and $ 77,482 , respectively, of prepaid royalti es related to this agreement, $ 7,203 and $ 14,235 , respectively, of which are included in prepaid expenses and other current assets and $ 58 ,814 and $ 63,247 , respectively, of which are included in other assets. The Company and the Network are also parties to an agreement under which the Company will provide the Network with an exclusive first look in the U.S. to license certain types of programming developed by the Company based on its intellectual property. In the event the Network licenses the programming from the Company to air, it is required to pay the Company a license fee. As of December 25, 2016 and December 27, 2015 the Company's investment in the Network totaled $ 242,397 and $ 242,932 , respectively. The Company's share in the (earnings) loss of the Network for the years ended December 25, 2016, December 27, 2015 and December 28, 2014 totaled $ (23,764) , $ (19,045) and $ 9,187 , respectively and is included as a component of other (income) expense, net in the accompanying consolidated statements of operat ions. In 2014, the Company's share in the loss of the Network included charges related to its restructuring totaling $ 17,278 . The Company also enters into certain other transactions with the Network including the licensing of television programming and th e purchase of advertising. During 2016, 2015 and 2014, these transactions were not material. |
Program Production Costs
Program Production Costs | 12 Months Ended |
Dec. 25, 2016 | |
Program Production Costs [Abstract] | |
Program Production Costs | (6) Program Production Costs Program production costs are included in other assets and consist of the following at December 25, 2016 and December 27, 2015: 2016 2015 Television programming $ 35,683 33,730 Released, less amortization In production 25,062 36,092 Pre-production 1,833 84 Theatrical programming In production 20,271 5,640 Total program production costs $ 82,849 75,546 Based on management’s total revenue estimates at December 25, 2016, all of the unamortized television programming costs relating to released productions are expected to be amortized during the next three years . Based on current estimates, the Company expects to amortize approximately $ 22,690 of the $ 35,683 of released programs during fiscal 2017. |
Financing Arrangements
Financing Arrangements | 12 Months Ended |
Dec. 25, 2016 | |
Financing Arrangements [Abstract] | |
Financing Arrangements | (7) Financing Arrangements At December 25, 2016, Hasbro had available an unsecured committed line and unsecured uncommitted lines of credit from various banks approximating $700,000 and $ 128,000 , respectively. All of the short-term borrowings outstanding at the end of 2016 and 2015 represent borrowings made under, or supported by, these lines of credit. Borrowings under the lines of credit were made by certain international affiliates of the Company on terms and at in terest rates generally extended to companies of comparable creditworthiness in those markets. The weighted average interest rates of the outstanding borrowings under the uncommitted lines of credit as of December 25, 2016 and December 27, 2015 were 8.17 % a nd 3.97 %, respectively. The Company had no borrowings outstanding under its committed line of credit at December 25, 2016 . During 2016, Hasbro's working capital needs were fulfilled by cash generated from operations, borrowings under lines of credit and ut ilization of its commercial paper program discussed below. The unsecured committed line of credit, as amended on March 30, 2015 (the "Agreement"), provides the Company with a $ 700,000 committed borrowing facility through March 30, 2020 . The Agreement con tains 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 complianc e with all covenants as of and for the year ended December 25, 2016. The Company pays a commitment fee ( 0 .12 % as of December 25, 2016) based on the unused portion of the facility and interest equal to a Base Rate or Eurocurrency Rate plus a spread on bor rowings under the facility. The Base Rate is determined based on either the Federal Funds Rate plus a spread, Prime Rate or Eurocurrency Rate plus a spread. The commitment fee and the amount of the spread to the Base Rate or Eurocurrency Rate both vary bas ed on the Company's long-term debt ratings and the Company's leverage. At December 25, 2016, the interest rate under the facility was equal to Eurocurrency Rate plus 1.125%. The Company has an agreement with a group of banks providing a commercial paper p rogram (the “Program”). Under the Program, at the Company’s request the banks may either purchase from the Company, or arrange for the sale by the Company of, unsecured commercial paper notes. Borrowings under the Program are supported by the aforementione d unsecured committed line of credit and the Company may issue notes from time to time up to an aggregate principal amount outstanding at any given time of $ 700,000 . The maturities of the notes may vary but may not exceed 397 days. Subject to market condit ions, the notes will be sold under customary terms in the commercial paper market and will be issued at a discount to par, or alternatively, will be sold at par and will bear varying interest rates based on a fixed or floating rate basis. The interest rate s will vary based on market conditions and the ratings assigned to the notes by the credit rating agencies at the time of issuance. At December 25, 2016, the Company had notes outstanding under the Program of $ 163,3 00 with a weighted average interest rate of 0.97 %. At December 27, 2015, the Company had notes outstanding under the Program of $ 160,000 with a weighted average interest rate of 0.61 %. |
Accrued Liabilities
Accrued Liabilities | 12 Months Ended |
Dec. 25, 2016 | |
Accrued Liabilities [Abstract] | |
Accrued Liabilities | (8) Accrued Liabilities Components of accrued liabilities are as follows: 2016 2015 Royalties $ 158,353 127,557 Advertising 73,963 60,196 Payroll and management incentives 100,248 93,578 Dividends 63,501 57,406 Other 379,974 320,137 Total accrued liabilities $ 776,039 658,874 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 25, 2016 | |
Long-Term Debt [Abstract] | |
Long-Term Debt | (9) Long-Term Debt Components of long-term debt are as follows: 2016 2015 Carrying Cost Fair Value Carrying Cost Fair Value 6.35% Notes Due 2040 $ 500,000 584,850 500,000 556,300 6.30% Notes Due 2017 350,000 361,900 350,000 374,045 5.10% Notes Due 2044 300,000 297,600 300,000 286,710 3.15% Notes Due 2021 300,000 300,450 300,000 300,060 6.60% Debentures Due 2028 109,895 123,984 109,895 121,269 Total long-term debt 1,559,895 1,668,784 1,559,895 1,638,384 Less: Current portion 350,000 361,900 — — Less: Deferred debt expenses 11,216 — 12,780 — Long-term debt $ 1,198,679 1,306,884 1,547,115 1,638,384 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. Prior to the issuance of the Notes, the Company held forward-st arting interest rate swap contracts to hedge the variability in the anticipated underlying U.S. Treasury interest rate associated with the expected issuance of the Notes. At the date of issuance, these contracts were terminated and the Company paid $ 33,306 , the fair value of the contracts on that date, to settle. Of this amount, $ 6,373 related to 3.15 % Notes Due 2021 and $ 26,933 related to 5.10% Notes Due 2044, which have been deferred in AOCE and are being amortized to interest expense over the life of the respective Notes using the effective interest rate method. The proceeds from the Notes have been presented net of the payment for these contracts in the consolidated statements of cash flows. The fair values of the Company’s long-term debt are considered Level 3 fair values (see note 12 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 ap proximates 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 Compan y believes that this is the best information available for use in the fair value measurement. Interest rates for the 6.30 % Notes Due 2017 may be adjusted upward in the event that the Company's credit rating from Moody's Investor Services, Inc., Standard & Poor's Ratings Services or Fitch Ratings is reduced to Ba1, BB+, or BB+, respectively, or below. At December 25, 2016, the Company’s ratings from Moody’s Investor Services, Inc., Standard & Poor’s Rating Services and Fitch Ratings were Baa1, BBB, and BBB+ , respectively. The interest rate adjustment is dependent on the degree of decrease of the Company’s ratings and could range from 0.25 % to a maximum of 2.00 %. The Company may redeem these notes at its option at the greater of the principal amount of these 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. At December 25, 2016, as detailed above, the Company’s 6.30% Notes mature in 2017 and the 3.15% Notes mature in 2021. All of the Company’s other long-term borrowings have contractual maturities that occur subsequent to 2021. The aggregate principal amount of long-term debt maturing in the next five years is $ 650,000 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 25, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | (10) Income Taxes Income taxes attributable to earnings before income taxes are: 2016 2015 2014 Current United States $ 78,958 101,591 70,390 State and local 3,208 3,352 3,134 International 77,834 71,054 62,909 160,000 175,997 136,433 Deferred United States 11,989 (13,771) (15,448) State and local 411 (472) (530) International (13,062) (4,711) 6,223 (662) (18,954) (9,755) Total income taxes $ 159,338 157,043 126,678 Certain income tax (benefits) expenses, not reflected in income taxes in the consolidated statements of operations totaled $ ( 35,722 ) in 2016 , $ ( 5,434 ) in 2015 and $ (38,223) in 2014 which relate primarily to stock compensation , pensions , and hedging . In 2016 , 2015 and 2014 , the deferred tax portion of the total (benefit) expense was $ (15,5 21) , $ 8,180 and $ (27,236) , respectively. A reconciliation of the statutory United States federal income tax rate to Hasbro's effective income tax rate is as follows . 2016 2015 2014 Statutory income tax rate 35.0% 35.0% 35.0% State and local income taxes, net 0.3 0.3 0.3 Tax on international earnings (15.8) (15.6) (6.4) Change in unrecognized tax benefits 1.7 4.3 (5.7) Other, net 1.8 2.0 0.3 23.0% 26.0% 23.5% The components of earnings before income taxes, determined by tax jurisdiction, are as follows: 2016 2015 2014 United States $ 146,013 155,120 190,769 International 546,476 448,795 349,219 Total earnings before income taxes $ 692,489 603,915 539,988 The components of deferred income tax expense (benefit) arise from various temporary differences and relate to items included in the consolidated statements of operations as well as items recognized in other comprehensive earnings. The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and liabilities at December 2 5, 2016 and December 27, 2015 are: 2016 2015 Deferred tax assets: Accounts receivable $ 32,277 23,568 Inventories 17,913 15,168 Loss and credit carryforwards 29,752 28,893 Operating expenses 48,024 43,029 Pension 35,255 48,560 Other compensation 66,220 62,882 Postretirement benefits 12,525 9,253 Interest rate hedge 10,286 10,937 Tax sharing agreement 17,339 18,379 Other 25,513 29,768 Gross deferred tax assets 295,104 290,437 Valuation allowance (24,065) (23,593) Net deferred tax assets 271,039 266,844 Deferred tax liabilities: Depreciation and amortization of long-lived assets 49,484 53,755 Equity method investment 7,056 8,205 Other 7,634 14,068 Deferred tax liabilities 64,174 76,028 Net deferred income taxes $ 206,865 190,816 Certain reclassifications have been made to prior year presentation to conform to current year presentation. Hasbro has a valuation allowance for certain deferred tax assets at December 2 5, 2016 of $24,065 , which is a n in crease of $ 472 from $ 23,593 at December 2 7, 2015 . The valuation allowance pertains to certain U.S. state and international loss and credit carryforwards, some of which have no expiration and others that would expire beginning in 201 7 . Based on Hasbro's history of taxable income and the anticipation of sufficient taxable income in years when the temporary differences are expecte d to become tax deductions, the Company believes that it will realize the benefit of all of the remaining net deferred tax assets . At December 2 5 , 201 6 and December 2 7 , 201 5 , the Company's net deferred income taxes are recorded in the consolidated balance sheets as follows: 2016 2015 Other assets 212,317 199,563 Other liabilities (5,452) (8,747) Net deferred income taxes $ 206,865 190,816 A reconciliation of unrecognized tax benefits, excluding potential interest and penalties, for th e fiscal years ended December 25 , 201 6 , December 27, 2015 and December 28, 2014 is as follows: 2016 2015 2014 Balance at beginning of year $ 63,549 35,416 55,459 Gross increases in prior period tax positions 2,727 491 34,225 Gross decreases in prior period tax positions (3,103) (1,773) (1,510) Gross increases in current period tax positions 34,155 32,547 8,470 Decreases related to settlements with tax authorities (11,662) (355) (58,652) Decreases from the expiration of statute of limitations (5,278) (2,777) (2,576) Balance at end of year $ 80,388 63,549 35,416 If the $ 80,388 balance as of December 25, 2016 is recognized, approximately $ 70,000 would decrease the effective tax rate in the period in which each of the benefits is recognized. The remaining amount would be offset by the reversal of related deferred tax and other assets. During 201 6 , 201 5 , and 2014 the Company recognized $ 2, 135 , $ 1,422 and $ 3,134 , respectively, of potential interest and penalties, which are included as a component of income taxes in the accompanying consolidated statements of operations. At December 2 5, 2016 , December 27, 2015 and December 28, 2014, the Compa ny had accrued poten tial interest and penalties of $ 3,966 , $ 4,778 and $ 4,042 , respectively. The Company and its subsidiaries file income tax returns in the United States and various state and international jurisdictions. In the normal course of bus iness, 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 201 2 . With few exceptions, th e 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. In the third quarter of 2016, the U.S. Internal Revenue Service commenced an examinati on related to the 2012 and 2013 amended U.S. federal income tax returns. The Company is also under income tax examination in several U.S. state and local and non-U.S. jurisdictions. During 2014, as a result of amending 2010 through 2012 U.S. fed eral income tax returns and making similar adjustments identified in the completion of the 2008 and 2009 U.S. Internal Revenue Service examinations, the Company recognized $ 12,159 of previously accrued unrecognized tax benefits including the reversal of re lated accrued interest, primarily related to the deductibility of certain expenses. Of this amount, $324 was recorded as a reduction of deferred tax assets and the remainder as a reduction to income tax expense. The total income tax benefit from the amende d returns, including other adjustments, was $ 13,480 during the first quarter of 2014. The Company had outstanding tax assessments in Mexico for the years 2000 to 2007 and for 2009 based on transfer pricing issues between the Company's subsid iaries with respect to the Company's operations in Mexico. During the fourth quarter of 2014, the Company and the Mexican tax authorities resolved these disputes which resulted in a cash payment of approximately $ 65,000 by the Company to the Mexican tax au thorities. During 2014, the income tax charge related to this resolution totaled $ 4,533 . This settlement agreement resolved all of the outstanding tax assessments and also closed all other completed tax years through and including 2013. The cumulative amount of undistributed earnings of Hasbro's international subsidiaries held for indefinite reinvestment is approximately $ 2,582,000 at December 2 5, 2016 . In the event that all international undistributed earnings were remitted to th e United States under current U.S. income tax laws , the amount of incremental taxes would be approximately $ 641,000 , however the remittance of such undistributed earnings would be limited by the Company’s available cash balance . |
Capital Stock
Capital Stock | 12 Months Ended |
Dec. 25, 2016 | |
Capital Stock [Abstract] | |
Capital Stock | (11) Capital Stock In February 2015 the Company’s Board of Directors authorized the repurchases of up to $ 500,000 in common stock . Purchases of the Company’s common stock may be made from time to time, subject to market conditions, and may be made in the open market or through privately negotiated transactions. The Company has no obligation to repurchase shares under the authorization and the time, actual number, and the value of the shares which are repurchased will depend on a number of factors, includ ing the price of the Company’s common stock. In 201 6 , the Company repurchased 1, 894 shares at an average price of $ 79.86 . The total cost of these repurchases, including transaction costs, was $ 151,331 . At December 2 5 , 201 6 , $ 327,990 remained under the curr ent authorizations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 25, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | (12) Fair Va lue of Financial Instruments The Company measures certain assets at fair value in accordance with current accounting standards. The fair value hierarchy consists of three levels: Level 1 fair values are valuations 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 valuations based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or othe r 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 valuations based on inputs that are supported by little or no market activity and that are sign ificant to the fair value of the assets or liabilities. There have been no transfers between levels within the fair value hierarchy. Current accounting standards permit entities to choose to measure many financial instruments and certain other items at fa ir 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 i nvestments. At December 2 5 , 201 6 and December 2 7 , 201 5 , these investments totaled $ 23,571 and $ 22,539 , respectively, and are included in prepaid expenses and other current assets in the consolidated balance sheets. The Company recorded net (losses) gains o f $ 1,010 , $ (682) and $ 899 on these investments in other expense (income) , net for the years ended December 2 5 , 201 6 , December 2 7 , 201 5 and December 2 8 , 201 4 , respectively, relating to the change in fair value of such investments. At December 2 5 , 201 6 and December 2 7 , 201 5 , the Company had the following assets and liabilities measured at fair value in its consolidated balance sheets (excluding assets for which the fair value is measured using net asset value per share) : Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) December 25, 2016 Assets: Available-for-sale securities $ 3,736 3,736 — — Derivatives 87,894 — 87,894 — Total assets $ 91,630 3,736 87,894 — Liabilities: Derivatives $ 11,309 — 11,309 — Option agreement 28,770 — — 28,770 Total Liabilities $ 40,079 — 11,309 28,770 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 December 2 5 , 201 6 and December 2 7 , 201 5 is valued using an option pricing model based on the fair value of the related investment. Inputs used in the option pricing model include volat ility 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 t he best information available for use in the fair value measurement. There were no changes in these valuation techniques during 2 01 6 . 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) Net losses from change in fair value (410) (3,020) Balance at end of year $ (28,770) (28,360) In addition to the above, the Company has three investments for which the fair value is measured using ne t asset value per share. At December 25, 2016 and Dec ember 27, 2015 these invest ments had fair values of $ 23,571 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 redeemable on a quarterly basi s with 30 – 90 days’ notice . |
Stock Options, Other Stock Awar
Stock Options, Other Stock Awards and Warrants | 12 Months Ended |
Dec. 25, 2016 | |
Stock Options, Other Stock Awards and Warrants [Abstract] | |
Stock Options, Other Stock Awards and Warrants | (13) Stock Options, Other Stock Awards and Warrants Hasbro has reserved 9,279 shares of its common stock for issuance upon exercise of options and other awards granted or to be granted under stock incentive plans for employees and for non-employee members of the Board of Directors (collectively, the "plans"). These awards generally vest and are expensed in equal annual amounts over three to five years. The plans provide that options be granted at exercise prices not less than the market value of the underlying common stock on the date the option is granted and options and share awards are adjusted for such changes as stock splits and stock dividends. Options are exercisable for periods of no more than seven years after date of grant. Upon exercise in the case of stock options, grant in the case of restricted stock or vesting in the case of performance based contingent stock and restricted stock unit grants, shares are issued out of available treasury shares. The Company’s current plan permits the gran ting of awards in the form of stock, stock appreciation rights, stock awards and cash awards in addition to stock options. Total compensation expense related to stock options, restricted stock units, including those awards made to non-employee memb ers of its Board of Directors, and stock performance awards for the years ende d December 25, 2016, December 27 , 201 5 and December 2 8 , 201 4 was $ 61,624 , $ 53,880 and $ 36,152 , respectively, and was recorded as follows: 2016 2015 2014 Cost of sales $ 200 366 395 Product development 3,248 3,527 3,874 Selling, distribution and administration 58,176 49,987 31,883 61,624 53,880 36,152 Income tax benefit 20,298 13,489 11,745 $ 41,326 40,391 24,407 The following table represents total compensation expense by award type related to stock performance awards, restricted stock units, stock options and awards made to non-employee members of its Board of Directors, for the years ended December 2 5 , 201 6 , December 2 7 , 201 5 and December 2 8 , 201 4 : 2016 2015 2014 Stock performance awards $ 34,248 27,960 11,315 Restricted stock units 19,908 19,052 15,643 Stock Options 5,838 5,419 7,473 Non-employee awards 1,630 1,449 1,834 Cash-settled restricted stock units — — (113) 61,624 53,880 36,152 Income tax benefit 20,298 13,489 11,745 $ 41,326 40,391 24,407 Stock Performance Awards In 201 6 , 201 5 and 201 4 , as part of its annual equity grant to executive officers and certain other employees, the Company issued contingent stock performance awards (the "Stock Performance Awards"). These awards provide the recipients with the ability to earn shares of the Company's common stock based on the Company's achievement of stated cumulative operating performance targets over the three fiscal years ended December 201 8 , December 201 7 , and December 201 6 for the 201 6 , 2 01 5 and 201 4 awards, respectively. Each 2014 Stock Performance Award has a target number of shares of common stock associated with such award which may be earned by the recipient if the Company achieves the stated diluted earnings per share and revenue tar gets while the 2015 and 2016 Stock Performance Awards include an additional return on invested capital target for certain employees in addition to the diluted earnings per share and revenue targets. The ultima te amount of the award may vary from 0 % to 200 % of the target number of shares, depending on actual results. Information with respect to Stock Performance Awards for 201 6 , 201 5 and 201 4 is as follows: 2016 2015 2014 Outstanding at beginning of year 992 655 943 Granted 529 362 322 Forfeited (23) (25) (32) Cancelled — — (578) Vested (424) — — Outstanding at end of year 1,074 992 655 Weighted average grant-date fair value: Granted $ 74.69 61.85 52.11 Forfeited $ 61.86 53.45 43.21 Cancelled $ — — 36.14 Vested $ 47.21 — — Outstanding at end of year $ 62.19 53.17 49.57 Shares granted in 2016 include 276 shares related to the 2014 award, reflecting increase s in the ultimate amount of shares to be issued based on the Company’s actual results during the performance period. These shares are excluded from the calculation of the weighted average grant-date fair value of Stock Performance awards granted in 2016. Shares granted in 2015 include 90 shares related to the 2013 award, reflecting an increase in the ultimate amount of s hares to be issued based on the Company’s actual results during the perfo rmance period. These shares are excluded from the calculation of the weighted average grant-date fair value of Stoc k Performance awards granted in 2015. Shares cancelled in 201 4 repr esent the cancellation of the Stock Perfo rmance Awards granted during 201 2 based on failure to meet the targets set forth by the agreement. During 201 6 , 201 5 and 201 4 , the Company re cognized $ 34,248 , $ 27,960 and $ 11,315 , respectively, of expense relating to these awards. Awards are valued at the market value of the underlying common stock at the dates of grant and are expensed over the performance period. On a periodic basis the Company reviews the actual and forecasted performance of the Company against t he stated targets for each award. The total expense is adjusted upward or downward based on the expected amount of shares to be issued as defined in the agreement. If minimum targets as detailed under the award are not met, no additional compensation expen se will be recognized and any previously recognized compensation expense will be reversed. At December 2 5 , 201 6 , the amount of total unrecognized compensation cost related to these awards is approximately $ 23,495 and the weighted average period over which this will be expensed is 19 months. Restricted Stock Units The Company, as part of its annual equity grant to executive officers and certain other employees, issues restricted stock or grants restricted stock units. These shares or units are nontransferable and subject to forfeiture for periods prescribed by the C ompany. These awards are valued at the market value of the underlying common stock at the date of grant and are subsequently amortized over the periods during which the restrictions lapse, generally between three and five years. During 2016, 2015 and 2014, the Company recognized compensation expense, net of forfeitures, on these awards of $ 19,908 , $ 19,052 and $ 15,643 , respectively. At December 25, 2016, the amount of total unrecognized compensation cost related to restricted stock units is $ 29,360 and the weighted average period over which this will be expensed is 19 months. In October 2012, as part of an Amended and Restated Employment Agreement, the Company's Chief Executive Officer was awarded 587 shares to be granted in two t ranches across 2013 and 2014, which are being expensed from 2013 through 2017. 468 shares of this award were considered granted in 2013 while the remaining 119 shares were granted in February 2014. These awards provide the recipient with the ability to ear n shares of the Company's common stock based on the Company's achievement of four stated stock price hurdles and continued employment through December 31, 2017. At the completion of the service period, the recipient will receive one quarter of the award fo r each stock price hurdle achieved after April 24, 2013. The four stock price hurdles are $ 45 , $ 52 , $ 56 and $ 60 which must be met for a period of at least thirty days using the average closing price over such period. In August 2014, the Amended and Restate d Employment Agreement was further amended to include additional requirements. Specifically, if the third and fourth stock price hurdles are achieved, the number of shares ultimately issued will be dependent on the average stock price for the thirty day pe riod immediately prior to December 31, 2017. This amendment did not result in any incremental fair value to the award which is used to record compensation expense for the award. The Company used a Monte Carlo simulation valuation model to determine the fa ir value of these awards. The following inputs were used in the simulation that resulted in an average grant date fair value for this award of $ 35.56 : Inputs Grant date stock price $47.28 Stock price volatility 26.12% Risk-free interest rate 0.65% Dividend yield 3.38% Excluding the aforementioned award for 587 shares, information with respect to the remaining Restricted Stock Awards and Restricted Stock Units for 201 6 , 201 5 and 201 4 is as follows: 2016 2015 2014 Outstanding at beginning of year 955 937 702 Granted 245 254 281 Forfeited (41) (52) (39) Vested (364) (184) (7) Outstanding at end of year 795 955 937 Weighted average grant-date fair value: Granted $ 75.23 62.95 52.06 Forfeited $ 59.37 51.57 44.44 Vested $ 43.89 39.87 41.19 Outstanding at end of year $ 61.65 51.22 45.74 Stock Options Information with respect to stock options for the three years ended December 2 5 , 201 6 is as follows: 2016 2015 2014 Outstanding at beginning of year 3,445 4,186 5,543 Granted 492 549 684 Exercised (1,143) (1,280) (1,951) Expired or forfeited (26) (10) (90) Outstanding at end of year 2,768 3,445 4,186 Exercisable at end of year 1,708 2,208 2,374 Weighted average exercise price: Granted $ 74.42 61.77 52.11 Exercised $ 41.75 37.54 31.07 Expired or forfeited $ 56.43 46.38 39.85 Outstanding at end of year $ 53.21 46.41 41.68 Exercisable at end of year $ 45.50 41.36 38.90 With respect to the 2,768 outstanding options and 1,708 options exercisable at December 2 5 , 201 6 , the weighted average remaining contractual life of these options was 3.87 years and 2.92 years, respectively. The aggregate intrinsic value of the options outstanding and exercisable at December 2 5, 2016 was $ 69,619 and $ 56,135 , respectively. Substantially all unvested outstanding options are expected to vest. The Company uses the Black-Scholes valuation model in determining the fair value of stock options. The expected life of the options used in this calculation is the period of time the options are expected to be outstanding and has been determined based on historical exercise experience. The weighted average fair value of options granted in fiscal 201 6 , 201 5 and 201 4 was $ 13.01 , $ 9.29 and $ 8.40 , respectively. The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted average assumptions used for grants in the fiscal years 20 16, 2015 and 2014 : 2016 2015 2014 Risk-free interest rate 1.16% 1.34% 1.42% Expected dividend yield 2.74% 2.98% 3.30% Expected volatility 26% 23% 26% Expected option life 5 years 5 years 5 years The intrinsic values, which represent the difference between the fair market value on the date of exercise and the exercise price of the option, of the options exercised in fiscal 201 6 , 201 5 and 201 4 were $ 47,992 , $ 41,906 and $ 44,890 , respectively. At December 2 5 , 201 6 , the amount of total unrecognized compensation cost related to stock options was $ 6 ,603 and the weighted average period over which this will be expensed is 2 2 months. Non-Employee Awards In 2016, 2015 and 2014 , the Company granted 23 , 20 and 34 shares of common stock, respectively, to its non-employee members of its Board of Directors. Of these shares, the receipt of 16 shares from the 201 6 grant, 1 6 shares from the 201 5 grant and 26 shares from the 201 4 grant has been deferred to the date upon which the respective director ceases to be a member of the Company's Board of Directors. These awards were valued at the market value of the underlying common stock at the date of grant and vested upon grant. In connection with these grants, compensation cost of $ 1, 630 was recorded in selling, distribution and administration expense in the year ended December 2 5 , 201 6 , $ 1, 449 in the year ended December 2 7 , 201 5 and $ 1, 834 in the year ended December 2 8 , 201 4 . |
Pension, Postretirement and Pos
Pension, Postretirement and Postemployment Benefits | 12 Months Ended |
Dec. 25, 2016 | |
Pension, Postretirement and Postemployment Benefits [Abstract] | |
Pension, Postretirement and Postemployment Benefits | (14) Pension, Postretirement and Postemployment Benefits Pension and Postretirement Benefits The Company recognizes an asset or liability for each of its defined benefit pension plans equal to the difference between the projected benefit obligation of the plan and the fair value of the plan’s assets. Actuarial gains and losses and prior service costs that have not yet been included in income are recognized in the consolidated balance sheets in AOCE. Reclassifications to earnings from AOCE related to pen sion and postretirement plans are recorded to selling, distribution and administration expense. Expenses related to the Company's defined benefit pension and def ined contribution plans for 2016, 2015 and 2014 were approximately $ 45,200 , $ 36,000 and $ 34,30 0 , respectively. Of these amounts, $ 33,3 00 , $ 26,6 00 and $ 28,100 , respectively, related to defined contribution plans in the United States and certain international subsidiaries. The remainder of the expense relates to defined benefit pension plans discusse d below. United States Plans Prior to 2008, substantially all United States employees were covered under at least one of several non-contributory defined benefit pension plans maintained by the Company. Benefits under the two major plans which princi pally cover non-union employees, were based primarily on salary and years of service. One of these major plans is funded. Benefits under the remaining plans are based primarily on fixed amounts for specified years of service. In 2007, for the two major pla ns covering its non-union employees, the Company froze benefits being accrued effective at the end of December 2007. Following the August 2015 sale of its manufacturing facility in East Longmeadow, MA, the Company elected to freeze benefits related to its major plan covering union employees. Effective January 1, 2016, the p lan covering union employees merged with and into the Hasbro Inc. Pension Plan, and ceased to exist as a separ ate plan on that date. At December 25, 2016 , the measurement date, t he proj ected benefit obligation of the funded plan was in excess of the fair value of the plan’s assets in the amount of $ 28,340 while the unfunded plans of the Company had an aggregate accumulated and projected benefit obligation of $ 35,104 . At December 27, 2015 the projected benefit obligations of the funded plans were in excess of the fair value of the plans’ assets in the amount of $ 66,980 while the unfunded plans of the Company had an aggregate accumulated and projected benefit obligation of $ 34,751 . Hasbro also provides certain postretirement health care and life insurance benefits to eligible employees who retire and have either attained age 65 with 5 years of service or age 55 with 10 years of service. The cost of providing these benefits on behalf of employees who retired prior to 1993 is and will continue to be substantially borne by the Company. The cost of providing benefits on behalf of substantially all employees who retire after 1992 is borne by the employee. The plan is not funded. Reconciliations of the beginning and ending balances for the projected benefit obligation, the fair value of plan assets and the funded status are included below for the years ended D ecember 25 , 2016 and December 27, 2015 . Pension Postretirement 2016 2015 2016 2015 Change in Projected Benefit Obligation Projected benefit obligation – beginning $ 361,060 383,068 26,247 28,017 Service cost 2,100 1,918 532 567 Interest cost 16,106 15,683 1,175 1,154 Actuarial (gain) loss 17,353 (17,968) 2,380 (741) Curtailment — 660 — (746) Benefits paid (22,508) (20,202) (1,850) (2,004) Expenses paid (1,287) (2,099) — — Projected benefit obligation – ending $ 372,824 361,060 28,484 26,247 Accumulated benefit obligation – ending $ 372,824 361,060 28,484 26,247 Change in Plan Assets Fair value of plan assets – beginning $ 259,329 272,010 — — Actual return on plan assets 8,961 (3,414) — — Employer contribution 64,885 13,034 — — Benefits paid (22,508) (20,202) — — Expenses paid (1,287) (2,099) — — Fair value of plan assets – ending $ 309,380 259,329 — — Reconciliation of Funded Status Projected benefit obligation $ (372,824) (361,060) (28,484) (26,247) Fair value of plan assets 309,380 259,329 — — Funded status (63,444) (101,731) (28,484) (26,247) Unrecognized net loss 138,529 120,482 2,420 41 Net amount recognized $ 75,085 18,751 (26,064) (26,206) Accrued liabilities $ (2,553) (2,663) (1,599) (1,800) Other liabilities (60,891) (99,068) (26,885) (24,447) Accumulated other comprehensive earnings (loss) 138,529 120,482 2,420 41 Net amount recognized $ 75,085 18,751 (26,064) (26,206) In fiscal 2017 , the Company expects amortization of unrecognized net losses related to its defined benefit pension plans of $ 9,082 to be included as a component of net periodic benefit cost. The Company does not expect amortization in 2017 related to its postretirement plan. Assumptions used to determine the year-end pension and postretirement benefit obligations are as follows: 2016 2015 Pension Weighted average discount rate 4.22% 4.58% Mortality table RP-2014/Scale BB RP-2014/Scale BB Postretirement Discount rate 4.26% 4.64% Health care cost trend rate assumed for next year 7.00% 7.00% Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.00% 5.00% Year that the rate reaches the ultimate trend 2021 2021 The assets of the funded plans are managed by investment advisors. The fair values of the plan assets by asset class and fair value hierarchy level (excluding assets for which the fair value is measured u sing net asset value per share) as of December 25, 2016 and December 27, 2015 are as follows: Fair value measurements using: Quoted Prices in Active Markets For Significant Identical Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) 2016 Equity: Large Cap $ 29,100 29,100 — — Small Cap 29,200 29,200 — — International measured at net asset value (a) 40,100 — — — Other measured at net asset value (a) 1,300 — — — Fixed Income measured at net asset value (a) 119,500 — — — Total Return Fund measured at net asset value (a) 29,000 — — — Cash Equivalents measured as net asset value (a) 61,100 — — — $ 309,300 58,300 — — 2015 Equity: Large Cap $ 27,600 27,600 — — Small Cap 24,300 24,300 — — International measured at net asset value (a) 37,500 — — — Other measured at net asset value (a) 2,500 — — — Fixed Income measured at net asset value (a) 122,600 — — — Total Return Fund measured at net asset value (a) 27,700 — — — Cash Equivalents measured as net asset value (a) 17,100 — — — $ 259,300 51,900 — — (a) Certain investments that are measured at fair value using the net asset value per share are not classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Schedule of Changes in Plan Assets disclosed previously in this note. The Plan’s Level 1 assets consist of investments traded on active markets that are valued using publ ished closing prices. At December 25, 2016 the Company’s investments for which the fair value is measured using net asset value per share include the following; International equity funds - $40.1 million of international equity funds that are redeemable daily with one days’ notice, Fixed income funds - $119.5 million of fixed income funds redeemable monthly with five days’ notice, Total return equity fu nds - $29.0 million total return equity funds redeemable monthly with fourteen days’ notice, Cash and cash equivalents - $61.1 million of cash and cash equivalents which are redeemable daily and p ublic-private investment fund s - $1.3 million consist ing of a public-private investment fund which is valued using the net asset value provided by the investment manager and invests in commercial mortgage-backed securities and non-agency residential mortgage-backed securities. The Company believes that the net asse t value s are the best information available for use in the fair value measurement of these funds. Hasbro's major funded plan (th e "Plan") is a defined benefit pension plan intended to provide retirement benefits to participants in accordance with the benefit structure establ ished by Hasbro, Inc. The Plan’s investment managers, who exercise full investment discretion within guideli nes outlined in the Plan’s Investment Policy, are charged with managing the assets with the care, skill, prudence and diligence tha t a prudent investment professional in similar circumstance would exercise. Investment practices, at a minimum, must comply with the Employee Retirement Income Security Act (ERISA) and any other applicable laws and regulations. The Plan’s asset allocation s are structured to meet a long-term targeted total return consistent with the ongoing nature of the Plan’s liabilities. The shared long-term total return goal, presently 6.75 %, includes income plus realized and unrealized g ains and/or losses on the Plan’s assets. Utilizing generally accepted divers ification techniques, the Plan’s assets, in aggregate and at the individual portfolio level, are invested so that the total portfolio risk exposure and risk-adjus ted returns best meet the Plan’s long-term obligat ions to employees. The Company’s asset allocation includes alternative investment strategies designed to achieve a modest absolute return in addition to the return on an underlying asset class such as bond or equity indices. These alternative investment st rategies may use derivatives to gain market returns in an efficient and timely manner; however, derivatives are not used to leverage the portfolio beyond the market value of the underlying assets. These alternative investment strategies are included in oth er equity, total return fund and fixed income asset categories at December 25, 2016 and December 27, 2015 . Plan asset allocations are reviewed at least quarterly and rebalanced to achieve target allocation among the asset categories when necessary. The Plans' investment managers are provided specific guidelines under which they are to invest the assets assigned to them. In general, investment managers are expected to remain fully invested in their asset class with further limitations of risk as related t o investments in a single security, portfolio turnover and credit quality. With the exception of the alternative investment strate gies mentioned above, the Plan’s Investment Policy restricts the use of derivatives associated with leverage or speculation. In addition, the Investment Policy also restricts investments in securities issued by Hasbro, Inc. except through index-related strategies (e.g. an S&P 500 Index Fund) and/or commingled funds. In addition, unless specifically approved by the Investment Com mittee (which comprises members of management, established by the Board to manage and control pension plan assets), certain securities, strategies, and investments are ineligible for inclusion within the Plans. The following is a detail of the components of the net periodic benefit cost for the three years ended December 25, 2016. 2016 2015 2014 Components of Net Periodic Cost Pension Service cost $ 2,100 1,918 1,824 Interest cost 16,106 15,683 16,209 Expected return on assets (17,013) (18,538) (18,631) Amortization of prior service cost — 65 98 Amortization of actuarial loss 7,361 7,468 3,351 Curtailment/settlement losses — 781 — Net periodic benefit cost $ 8,554 7,377 2,851 Postretirement Service cost $ 532 567 543 Interest cost 1,175 1,154 1,337 Amortization of actuarial (gain) loss — (304) (457) Curtailment gain — (3,842) — Net periodic benefit cost (income) $ 1,707 (2,425) 1,423 See note 17 for additional information on the 2015 curtailment (gain) loss. Assumptions used to determine net periodic benefit cost of the pension plan and postretirement plan for each fiscal year follow: 2016 2015 2014 Pension Weighted average discount rate 4.58% 4.22% 5.02% Long-term rate of return on plan assets 6.75% 7.00% 7.00% Postretirement Discount rate 4.64% 4.49% 5.11% Health care cost trend rate assumed for next year 7.00% 6.50% 7.00% Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.00% 5.00% 5.00% Year that the rate reaches the ultimate trend rate 2021 2020 2020 If the health care cost trend rate were increased one percentage point in each year, the accumulated postretirement b enefit obligation at December 25, 2016 and the aggregate of the benefits earned during the period and the interest cost would have both increased by approximately 1.0 %. Hasbro works with external benefit investment specialists to assist in the development of the long-term rate of return assumptions used to model and determine the overall asset allocation. Forecast returns are based on the combination of historical returns, current market conditions and a forecast for the capital markets for the next 5-7 years. All asset class assumptions are within certain bands around the long-term historical averages. Correlations are based primarily on historical return patterns. Expected benefit payments under the defined benefit pension plans and the postretirement benefit plan for the ne xt five years subsequent to 2016 and in the aggregate for the following five years are as follows: Pension Postretirement 2017 $ 20,034 1,633 2018 20,108 1,593 2019 20,520 1,541 2020 20,995 1,497 2021 21,694 1,452 2022-2026 116,258 6,829 International Plans Pension coverage for employees of Hasbro's international subsidiaries is provided, to the extent deemed appropriate, through separate defined benefit and defined contribution plans. At D ecember 25, 2016 and December 27, 2015 , the defined benefit plans had total projected benefit obligations of $ 118,492 and $ 112,799 , respectively, and fair values of plan assets of $ 85,678 and $ 85,752 , respectively. Substantially all of the plan assets are invested in equity and fixed income securiti es. The pension expense related to these plans was $ 1,533 , $ 2,769 and $ 3,363 in 2016, 2015 and 2014, respectively. In fiscal 2017 , the Company expects amortization of $ (36 ) of prior service costs, $ 1,281 of unrecognized net losses and $ 2 of unrecognized t ransition obligation to be included as a component of net periodic benefit cost. Expected benefit payments under the international defined benefit pension plans for t he five years subsequent to 2016 and in the aggregate for the five years thereafter are as follows: 2017 : $ 1, 689 ; 2018 : $ 1 ,910 ; 2019 : $ 2,051 ; 2020 : $ 2 ,219 ; 2021 : $ 2 ,453 ; and 2022 through 2026 : $ 15,963 . Postemployment Benefits Hasbro has several plans covering certain groups of employees, which may provide benefits to such employees following their period of active employment but prior to their retirement. These plans include certain severance plans which provide benefits to employees involuntarily terminated and certain plans which continue the Company's health and life insurance contributions for employees who have left Hasbro's employ under terms of its long-term disability plan. |
Leases
Leases | 12 Months Ended |
Dec. 25, 2016 | |
Leases [Abstract] | |
Leases | (15) Leases Hasbro occupies offices and uses certain equipment under various operating lease arrangements. The rent expense under such arrangements, net of sublease income which is not material, for 201 6 , 201 5 and 201 4 amounted to $ 52,585 , $ 45,592 and $ 47,026 , respectively. Minimum rentals, net of minimum sublease income, which is not material, under long-term operating leases for the five years subsequent to 201 6 and in the aggregate thereafter are as follows: 201 7 : $ 37,061 ; 201 8 : $ 32,403 ; 201 9 : $ 28,535 ; 20 20 : $ 17,981 ; 202 1 : $ 11,293 ; and thereafter: $ 27,662 . All leases expire prior to the end of 2025 . Real estate taxes, insurance and maintenance expenses are generally obligations of the Company. It is expected that, in the normal course of business, lea ses that expire will be renewed or replaced by leases on other properties; thus, it is anticipated that future minimum lease commitments will not be less than the amounts shown for 201 7 . |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 25, 2016 | |
Derivative Financial Instruments [Abstract] | |
Derivative Financial Instruments | (16) 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 Hasbro uses foreign currency forward contracts to reduce the impact of currency rate fluctuations on firmly committed and projected future forei gn 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 and other cross-border transactions in years 201 7 through 2021 . At December 25 , 201 6 and December 2 7, 2015 , the notional amounts and fair values of assets (liabilities) for the Company’s foreign currency forward contracts designated as cash flow hedging instruments were as follows: 2016 2015 Hedged transaction Notional Fair Notional Fair Amount Value Amount Value Inventory purchases $ 945,728 60,520 1,380,488 108,521 Sales 290,181 9,775 97,350 803 Royalties and Other 198,849 1,633 54,360 (1,886) Total $ 1,434,758 71,928 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 sheet at December 2 5, 2016 and December 2 7, 2015 as follows: 2016 2015 Prepaid expenses and other current assets Unrealized gains $ 34,265 78,910 Unrealized losses (2,075) (5,932) Net unrealized gain $ 32,190 72,978 Other assets Unrealized gains $ 51,839 35,366 Unrealized losses (792) (710) Net unrealized gain $ 51,047 34,656 Accrued liabilities Unrealized gains $ 8,481 — Unrealized losses (19,790) — Net unrealized loss $ (11,309) — Other liabilities Unrealized gains $ — 241 Unrealized losses — (437) Net unrealized loss $ — (196) Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings to net earnings for the years ended December 25, 2016, December 27 , 2015 and December 28, 2014 as follows: 2016 2015 2014 Consolidated Statements of Operations Classification Cost of sales $ 57,786 66,378 973 Sales 7,467 (9,219) (3,741) Royalties and other (5,776) (566) (2,028) Net realized gains (losses) $ 59,477 56,593 (4,796) In addition, net gains of $ 400 , $ 1,169 and $ 62 were reclassified to earnings as a result of hedge ineffectiveness in 2016, 2015 and 2014, respe ctively. 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 changes. The Company does not use hedge accounting for these contracts as changes in the fair values of these contracts are substantially offset by changes in the fair value of the intercompany loans. As of December 2 5 , 201 6 and December 2 7 , 201 5 , the total notional amount of the Company’s undesignated derivative instruments was $ 268,308 and $ 341,389 , respectively. At December 2 5, 2016 and December 2 7, 2015 , the fair value of the Company’s un designated derivative financial instruments are recorded in the consolidated balance sheets as follows: 2016 2015 Prepaid expenses and other assets Unrealized gains $ 5,854 - Unrealized losses (1,197) - Net unrealized gain $ 4,657 - Accrued liabilities Unrealized gains $ - 416 Unrealized losses - (1,460) Net unrealized loss $ - (1,044) Total unrealized gain (losses) $ 4,657 (1,044) The Company recorded net gains (losses) of $ 32,524 , $ 48,489 and $ (32,106) on these instruments to other (income) expense, net for 201 6 , 201 5 and 201 4 , 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 instruments relate. For additional information related to the Company’s derivative finan cial instruments see notes 2 and 12. |
Sale of Manufacturing Operation
Sale of Manufacturing Operations | 12 Months Ended |
Dec. 25, 2016 | |
Sale of Manufacturing Operations [Abstract] | |
Sale of Manufacturing Operations | (17) Sale of Manufacturing Operations On August 30, 2015, the Company completed the sale of its manufacturing operations to Cartamundi NV (“Cartamundi”) for approximately $ 54,400 , approximately $ 18,600 of which was received on the date of sale with the remainder to be paid in 5 annual installments. Under the terms of the purchase and sale agreement, Cartamundi acquired the inventory and property, plant and equipment related to manufacturing operations in East Longmeadow, MA and the common stock of the Co mpany’s manufacturing subsidiary in Waterford, Ireland. Inclusive of this transaction and other related costs, the Company recognized a gain of $ 6,573 on the sale recorded in other (income) expense, net in the consolidated statements of operations for the year ending December 27, 2015. These operations were a component of the Company’s Global Operations segment. In connection with this transaction, the Company also entered into a manufacturing services agreement under which Cartamundi will provide manufac turing services over a 5-year term. In connection with this agreement, the Company has agreed to minimum purchase commitments from Cartamundi over the term of the agreement. The Company and Cartamundi are also party to a warehousing agreement under which the Company leases designated warehouse space at the East Longmeadow, MA location, as well as a transition services agreement related to certain administrative functions each party is providing each other during a defined transition period. In connection with this transaction, the Company froze the benefits of one of its funded defined benefit pension plans covering union employees. In connection with these actions, the Company recognized a net curtailment benefit of $ 3,061 related to net prior service cr edits in the related defined benefit pension and post-retirement plans. This benefit is recorded in selling, distribution and administration expenses in the consolidated statements of operations for the year ending December 27, 2015. The Company has retain ed the frozen defined benefit pension plans related to its former employees of its East Longmeadow, MA and Waterford, Ireland businesses. |
Acquisition
Acquisition | 12 Months Ended |
Dec. 25, 2016 | |
Acquisitions [Abstract] | |
Business Combination Disclosure [Text Block] | (18) Acquisition On July 13, 2016 , the Company acquired Boulder Media Limited (“Boulder”), an animation studio based in Dublin, Ireland. The consideration included an initial cash payment of approximately $ 13,177 and provisions for future earnout payments. Bas ed on the Company’s analysis, goodwill in the amount of $ 1 1,821 was recorded. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 25, 2016 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | (19) Commitments and Contingencies Hasbro had unused open letters of credit and related instruments of approximately $ 42,100 and $ 24,444 at December 25, 2016 and December 27, 2015, respectively. The Company enters into license agreements with strategic partners, inventors, designers and others for the use of intellectual properties in its products. Certain of these agreements contain provisions for the payment of guaranteed or minimum royalty amou nts. Under terms of exist ing agreements as of December 25, 2016 , Hasbro may, provided the other party meets their contractual commitment, be required to pay amounts as follo ws: 2017: $ 66,574 ; 2018: $ 60,007 ; 2019: $ 49,366 ; 2020: $ 9,866 ; 2021: $ 9,866 ; and th ereafter: $ 19,935 . At December 25, 2016, the Company had $ 102,807 of prepaid royalties, $ 34,096 of which are included in prepaid expenses and other current assets and $ 68,711 of which are included in other assets. In addition to the above commitments, certain of the above contracts impose minimum marketing commitments on the Company. The Company may be subject to additional royalty guarantees totaling $ 14 0,000 that are not included in the amounts above that may be payable during the next five years cont ingent upon the quantity and types of theatrical movie releases by the licensor. In connection with the Company’s agreement to form a joint venture with Discovery, the Company is obligated to make future payments to Discovery under a tax sharing agreement . The Company estimates these payments may total approximately $ 78,310 and may range from approximately $ 6,700 to $ 8,600 per year during the period 2017 to 2021 , and approximately $ 40,597 in aggregate for all years occurring thereafter. These payments ar e contingent upon the Company having sufficient taxable income to realize the expected tax deductions of certain amounts related to the joint venture. At December 25, 2016, the Company estimates payments related to inventory and tooling purchase commitme nts may total approximately $ 689,870 , including contractual commitments under the manufacturing agreement with Cartamundi as follows : 2017: $ 1 11,565 ; 2018: $ 1 05,520 ; 2019: $ 99,475 ; and 2020: $ 78,768 . For additional information about these commitments, see Note 17. Hasbro is party to certain legal proceedings, as well as certain asserted and unasserted claims. Amounts accrued, as well as the total amount of reasonably possible losses with respect to such matters, individually and in the aggregate, are not deemed to be material to the consolidated financial statements. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 25, 2016 | |
Segment Reporting [Abstract] | |
Segment Reporting | (20) Segment Reporting Segment and Geographic Information Hasbro is a global play and entertainment company 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 traditional 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 products licensing, digital gaming, movie and televisio n entertainment operations. The Global Operations segment is responsible for sourcing finished products for the Company's U.S. and Canada and International segments. During the third quarter of 2015, the Company sold its remaining manufacturing operations in East Longmeadow, Massachusetts and Waterford, Ireland. 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 cer tain 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 al located 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 fiscal years 2016, 2015 and 2014 are not necessarily those which would be achieved if each segment was an unaffiliated business enterprise. Information by segment and a reconciliation to reported amounts are as follows: Revenues from Operating Depreciation External Affiliate Profit and Capital Total Customers Revenue (Loss) Amortization Additions Assets 2016 U.S. and Canada $ 2,559,907 7,091 522,287 12,764 8,107 2,559,792 International 2,194,651 1,908 294,497 20,768 7,258 2,368,761 Entertainment and Licensing 265,205 23,220 49,876 9,869 13,072 692,898 Global Operations (a) 59 1,617,370 19,440 78,249 89,051 2,326,566 Corporate and eliminations (b) — (1,649,589) (98,052) 32,820 37,412 (2,856,651) Consolidated Total $ 5,019,822 — 788,048 154,470 154,900 5,091,366 2015 U.S. and Canada $ 2,225,518 5,339 430,707 14,946 3,508 2,654,270 International 1,971,875 15 255,365 20,434 7,029 2,345,847 Entertainment and Licensing 244,685 23,144 76,868 16,251 387 567,753 Global Operations (a) 5,431 1,583,665 12,022 70,794 83,304 2,410,142 Corporate and eliminations (b) — (1,612,163) (83,029) 32,902 47,794 (3,257,295) Consolidated Total $ 4,447,509 — 691,933 155,327 142,022 4,720,717 2014 U.S. and Canada $ 2,022,443 5,957 334,702 20,689 1,131 3,663,497 International 2,022,997 170 270,505 23,086 3,063 2,422,046 Entertainment and Licensing 219,465 22,401 60,550 21,827 807 783,878 Global Operations (a) 12,302 1,564,654 15,767 69,442 71,763 2,433,888 Corporate and eliminations (b) — (1,593,182) (46,149) 22,922 36,624 (4,785,209) Consolidated Total $ 4,277,207 — 635,375 157,966 113,388 4,518,100 (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. Furthermore, Corporate and eliminations includes elimination of inter-company income statement transactions. One such example includes licensing and service arrangements with affiliates. Payments received in advance from affiliates are recognized as revenue and eliminated in consolidation as earned and payment becomes assured over the life of the contract. During 2016 and 2015, affiliate licens ing and service fees of $283,078 a nd $265,595, respectively, that were received in 2015 and 2014, respectively, were recognized as revenue and eliminated in consolidation. 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 three fiscal years ended December 25, 2016 . 2016 2015 2014 Europe $ 1,404,478 1,236,846 1,258,078 Latin America 463,638 426,109 463,512 Asia Pacific 326,535 308,920 301,407 Net revenues $ 2,194,651 1,971,875 2,022,997 The following table presents consolidated net revenues by classes of principal products for the three fiscal years ended December 25, 2016. 2016 2015 2014 Boys $ 1,849,645 1,775,917 1,483,952 Games 1,387,077 1,276,532 1,259,782 Girls 1,193,877 798,240 1,022,633 Preschool 589,223 596,820 510,840 Net revenues $ 5,019,822 4,447,509 4,277,207 Given the evolution of the Company’s business, with a focus on brands rather than individual products within a brand, as well as the development of the Company’s brands and its partners’ brands across the brand blueprint into products and entertainment that are enjoyed by girls and boys, beginning in 2017 the Company will report its revenues by brand portfolio: Franchise Brands, Partner Brands, Hasbro Gaming and Emerging Brands. At that time the Company will cease providing a revenue breakdown by the historical categories, Boys, Games, Girls and Preschool. The following table presents consolidated net revenues by brand portfolio for the three fiscal years ended December 25, 2016. 2016 2015 2014 Franchise brands $ 2,327,668 2,285,414 2,345,128 Partner brands 1,412,770 1,101,305 654,057 Hasbro gaming 813,433 662,319 643,615 Emerging brands 465,951 398,471 634,407 Net revenues $ 5,019,822 4,447,509 4,277,207 Information as to Hasbro’s operations in different geographical areas is presented below on the basis the Company uses to manage its business. Net revenues are categorized based on location of the customer, while long-lived assets (property, plant and equipment, goodwill and other intangibles) are categorized based on their location. 2016 2015 2014 Net revenues United States $ 2,575,696 2,278,613 2,040,476 International 2,444,126 2,168,896 2,236,731 5,019,822 4,447,509 4,277,207 Long-lived assets United States 933,848 932,790 977,035 International 150,054 178,239 178,420 $ 1,083,902 1,111,029 1,155,455 Principal international markets include Europe, Canada, Mexico and Latin America, Australia, and Hong Kong. Long-lived assets include property, plant and equipment, goodwill and other intangibles . Other Information Hasbro markets its products primarily to customers in the retail sector. Although the Company closely monitors the creditworthiness of its customers, adjusting credit policies and limits as deemed appropriate, a substantial portion of its customers' ability to discharge amounts owed is generally dependent upon the overall retail economic environment. Sales to the Company's three largest customers, Wal-Mart Stores, Inc., Toys “R” Us, Inc. and Target Corporation, amounted to 18 %, 9 % and 9 %, respectively, of consolidated net revenues during 2016, 16 %, 9 % and 9 %, respectively, of consolidated net revenues during 2015 and 16 %, 9 % and 8 %, respectively, of consolidated net revenues during 2014. These sales were primarily within the U.S. and Ca nada segment. Hasbro purchases certain components used in its manufacturing process and certain finished products from manufacturers in the Far East. The Company's reliance on external sources of manufacturing can be shifted, over a period of time, to alt ernative sources of supply for products it sells, should such changes be necessary. However, if the Company were prevented from obtaining products from a substantial number of its current Far East suppliers due to political, labor or other factors beyond i ts control, the Company's operations would be disrupted, potentially for a significant period of time, while alternative sources of product were secured. The imposition of trade sanctions, quotas or other protectionist measures by the United States or the European Union against a class of products imported by Hasbro from, or the loss of “normal trade relations" status with, China could significantly increase the cost of the Company’s products imported into the United States or Europe. The Company has agre ements which allow it to develop and market products based on properties owned by third parties including its license with Marvel Entertainment, LLC and Marvel Characters B.V. (together “Marvel”) and its license with Lucas Licensing Ltd. and Lucasfilm Ltd. (together “Lucas”). These licenses have multi-year terms and provide the Company with the right to market and sell designated classes of products based on Marvel’s portfolio of brands, including SPIDER-MAN and THE AVENGERS, and Lucas’s STAR WARS brand. H asbro’s net revenues from these licenses can be significant in any given year based on the level of third party entertainment. Both Marvel and Lucas are owned by The Walt Disney Company. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 25, 2016 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarter First Second Third Fourth Full Year 2016 Net revenues $ 831,180 878,945 1,679,757 1,629,940 5,019,822 Operating profit 85,916 84,874 362,101 255,157 788,048 Earnings before income taxes 59,213 67,020 346,324 219,932 692,489 Net earnings 46,971 49,419 256,162 180,599 533,151 Net earnings attributable to Hasbro, Inc. 48,751 52,106 257,798 192,725 551,380 Per common share Net earnings attributable to Hasbro, Inc. Basic $ 0.39 0.42 2.05 1.54 4.40 Diluted 0.38 0.41 2.03 1.52 4.34 Market price High $ 78.94 87.63 87.94 86.25 87.94 Low 66.96 77.80 76.16 77.27 66.96 Cash dividends declared $ 0.51 0.51 0.51 0.51 2.04 Quarter First Second Third Fourth Full Year 2015 Net revenues $ 713,500 797,658 1,470,997 1,465,354 4,447,509 Operating profit 54,205 75,500 303,527 258,701 691,933 Earnings before income taxes 34,315 53,646 284,617 231,337 603,915 Net earnings 25,821 40,282 206,375 174,394 446,872 Net earnings attributable to Hasbro, Inc. 26,667 41,809 207,599 175,763 451,838 Per common share Net earnings attributable to Hasbro, Inc. Basic $ 0.21 0.33 1.66 1.41 3.61 Diluted 0.21 0.33 1.64 1.39 3.57 Market price High $ 63.47 78.91 84.42 79.93 84.42 Low 51.42 61.13 60.38 64.91 51.42 Cash dividends declared $ 0.46 0.46 0.46 0.46 1.84 |
Schedule II Valuation and Quali
Schedule II Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 25, 2016 | |
Schedule II - Valuation and Qualifying Accounts [Abstract] | |
Schedule II - Valuation and Qualifying Accounts | Valuation and Qualifying Accounts Fiscal Years Ended in December (Thousands of Dollars) Balance at Balance Beginning of Expense Other Write-Offs at End of Year (Benefit) Additions and Other Year Valuation accounts deducted from assets to which they apply – for doubtful accounts receivable: 2016 $ 14,900 19,500 — (17,600) $ 16,800 2015 $ 15,900 2,400 — (3,400) $ 14,900 2014 $ 19,000 800 — (3,900) $ 15,900 |
Summary of Significant Accoun30
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 25, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Principles of Consolidation | The consolidated finan cial statements include the accounts of Hasbro, Inc. and all majority-owned subsidiaries ("Hasbro" or the "Company"). Investments representing 20 % to 50 % ownership interests in other companies are accounted for using the equity method. For those majorit y-owned subsidiaries that are not 100% owned by Hasbro, the interests of the minority owners are accounted for as noncontrolling interests. All intercompany balances and transactions have been eliminated. |
Preparation of Financial Statements | The preparation of the consolidated financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements and notes thereto. Actual results could differ from those estimates. |
Fiscal Year | Hasbro's fiscal year ends on the last Sunday in December. The fiscal years ended December 25, 2016, December 27, 2015 and December 28, 2014 were fifty-two week periods. |
Cash and Cash Equivalents | Cash and cash equivalents include all cash balances and highly liquid investments purchase d with a maturity to the Company of three months or less. |
Marketable Securities | Included in marketable securities are investments in private investment funds. These investments are included in prepaid expenses and other current assets in the accompanying consolidated balance sheets, and, due to the nature and business purpose of these investments, the Company has selected the fair value option which requires the Company to record the unrealized gains and losses on these investments in the cons olidated statements of operations at the time they occur. Marketable securities also include common stock in a public company arising from a business relationship. This investment is also included in prepaid expenses and other current assets in the accom panying consolidated balance sheets; however, due to its nature and business purpose, the Company records unrealized gains and losses on this investment in accumulated other comprehensive loss in the consolidated balance sheets until it is sold at which po int the realized gains or losses will be recognized in the consolidated statements of operations. |
Accounts Receivable and Allowance for Doubtful Accounts | Credit is granted to customers predominantly on an unsecured basis. Credit limits and payment terms are established based on extensive evaluations made on an ongoing basis throughout the fiscal year with regard to the financial performance, cash generation, financing availability and liquidity status of each customer. The majority of customers are forma lly reviewed at least annually; more frequent reviews are performed based on the customer’s financial condition and the level of credit being extended. For customers on credit who are experiencing financial difficulties, management performs additional fina ncial analyses before shipping orders. The Company uses a variety of financial transactions, based on availability and cost, to increase the collectability of certain of its accounts, including letters of credit, credit insurance, and requiring cash in adv ance of shipping. The Company records an allowance for doubtful accounts based on management’s assessment of the business environment, customers’ financial condition, historical collection experience, accounts receivable aging and customer disputes. When a significant event occurs, such as a bankruptcy filing by a specific customer, and on a quarterly basis, the allowance is reviewed for adequacy and the balance is adjusted to reflect current risk assessments. Accounts receivable, net on the consolidat ed balance sheet represents amounts due from customers less the allowance for doubtful accounts as well as allowances for discounts, rebates and returns. |
Inventories | Inventories are valued at the lower of cost (first-in, first-out) or market. Based upon a consideration of quantities on hand, actual and projected sales volume, anticipated product selling price and product lines planned to be discontinued, slow-moving and obsolete inventory is written down to its estimated net realizable value. At both Dece mber 25, 2016 and December 27, 2015, substantially all inventory is comprised of finished goods. |
Equity Method Investments | For the Company’s equity method investments, only the Company’s investment in and amounts due to and from the equity method investment are included in the consolidated balance sheets and only the Company’s share of the equity method investment's earnings (losses) is included in other expense, net in the consolidated statements of operations. Dividends, cash distributions, loans or other cash received from the equity method investment, additional cash investments, loan repayments or other cash paid to the investee are included in the consolidated statements of cash flows. The Company reviews its equity method investments for im pairment on a periodic basis. If it has been determined that the fair value of the equity investment is less than its related carrying value and that this decline is other-than-temporary, the carrying value of the investment is adjusted downward to reflect these declines in value. The Company has one significant equity method investment, its 40 % interest in a joint venture with Discovery Communications, Inc. ("Discovery"). The Company and Discovery are party to an option agreement with respect to this join t venture. The Company has recorded a liability for this option agreement at fair value which is included in other liabilities in the consolidated balance sheets. Unrealized gains and losses on this option are recognized in the consolidated statements of o perations as they occur. See notes 5 and 12 for additional information. |
Property, Plant and Equipment, Policy [Policy Text Block] | Property, plant and equipment are stated at cost less accumulated depreciation. Depreciation is computed using accelerated and straight-line methods to depreciate the cost of property, plant and equipment over their est imated useful lives. The principal lives, in years, used in determining depreciation rates of various assets are: land improvements 15 to 19, buildings and improvements 15 to 25 and machinery and equipment (including computer hardware and software) 3 to 12 . Depreciation expense is classified in the consolidated statements of operations based on the nature of the property and equipment being depreciated. Tools, dies and molds are depreciated over a three-year period or their useful lives, whichever is less, using an accelerated method. The Company generally owns all tools, dies and molds related to its products. Property, plant and equipment, net is reviewed for impairment whenever events or circumstances indicate the carrying value may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the asset to future undiscounted cash flows expected to be generated by the asset or asset group. If such assets are considered to be impaired, the impairment to be recognized would be m easured by the amount by which the carrying value of the assets exceeds their fair value wherein the fair value is the appraised value. Furthermore, assets to be disposed of are carried at the lower of the net book value or their estimated fair value less disposal costs. |
Goodwill and Intangible Assets, Policy [Policy Text Block] | Goodwill results from acquisitions the Company has made over time. Substantially all of the other intangibles consist of the cost of acquired product rights. In establishing the value of such rights, the Company considers existing trademarks, copyrights, patents, license agreements and other product-related rights. These rights were valued on their acquisition date based on the anticipated future cash flows from the underlying product line. The Company has certain intangible assets related to the Tonka and Milton Bradley acquisitions that have an indefinite life. Goodwill and intangible assets deemed to have indefinite lives are not amortized and are tested for impairment at least annually. The annual test begins with goodwill and all intangible assets being allocated to applicable reporting units. This quantitative two-step process begins with an estimation of fair value of the reporting unit using an income approach, which looks to the present value of expected future cash flows. The first step is a screen for potential impairment while the second step measures the amount of impairment if there is an indication from the first step that one exists. When performing the quantitative two-step impairment t est, goodwill and intangible assets with indefinite lives are tested for impairment by comparing their carrying value to their estimated fair value, also calculated using the present value of expected future cash flows. The Company may bypass the quantita tive two-step impairment process and perform a qualitative assessment if it is not more likely than not that impairment exists. Performing a qualitative assessment of goodwill requires a high degree of judgment regarding assumptions underlying the valuatio n. Qualitative factors and their impact on critical inputs are assessed to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. During the fourth quarter of 2016, the Company performed a qualitative assessment with respect to goodwill associated with all but one of its reporting units and determined that it was not necessary to perform a quantitative assessment for the goodwill of these reporting units. The Company also performed quantitative two-step annual impairment tests related to its intangible assets with indefinite lives, as well as goodwill associated with Backflip, the Company's majority owned mobile gaming reporting unit. As a result of the annual impairment test, the Company concluded the goodwill associated with the Backflip reporting unit was impaired and recorded a non-cash impa irment charge of $32,858. No other impairments were indicated as the estimated fair values were in excess of the carrying value of the related intangible assets or reporting units, as applicable. See further discussion in note 4. The remaining intangibles having defined lives are being amortized over periods ranging from four to twenty years, primarily using the straight-line method . The Company reviews other intangibles with defined lives for impairment whenever events or changes in circumstances indicate the carrying value may not be recoverable. Recoverability is measured by a comparison of the carrying amount of the asset to future undiscounted cash flows expected to be generated by the asset or asset group. If such assets were considered to be impaired, the impairment to be recognized would be measured by the amount by which the carrying v alue of the assets exceeds their fair value wherein that fair value is determined based on discounted cash flows. |
Financial Instruments | Hasbro's financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, account s payable and certain accrued liabilities. At December 25, 2016, the carrying cost of these instruments approximated their fair value. The Company's financial instruments at December 25, 2016 also include long-term borrowings (see note 9 for carrying cost and related fair values) as well as certain assets and liabilities measured at fair value (see notes 12 and 16). |
Revenue Recognition | Revenue from product sales is recognized upon the passing of title to the customer, generally at the time of shipment. Pr ovisions for discounts, rebates and returns are made when the related revenues are recognized. The Company bases its estimates for discounts, rebates and returns on agreed customer terms and historical experience. The Company enters into arrangements lice nsing its brands on specifically approved products or formats. The licensees pay the Company royalties based on their revenues derived from the brands, in some cases subject to minimum guaranteed amounts. Royalty revenues are recognized as they are reporte d as earned and payment becomes assured, over the life of the license agreement. The Company produces television programming for license to third parties. Revenues from the distribution of television and other programming are recorded when the use of the content may be directed by the distributor and when certain other conditions are met. Revenue from product sales less related provisions for discounts, rebates and returns, as well as royalty, television programming and digital gaming revenues comprise n et revenues in the consolidated statements of operations. |
Costs of Sales | Cost of sales primarily consists of purchased materials, labor, tooling, manufacturing overheads and other inventory-related costs such as obsolescence. |
Royalties | The Company ent ers into license agreements with strategic partners, inventors, designers and others for the use of intellectual properties in its products. These agreements may call for payment in advance or future payment of minimum guaranteed amounts. Amounts paid in a dvance are recorded as an asset and charged to expense when the related revenue is recognized in the consolidated statements of operations. If all or a portion of the minimum guaranteed amounts appear not to be recoverable through future use of the rights obtained under the license, the non-recoverable portion of the guaranty is charged to expense at that time. |
Advertising | Production costs of commercials are expensed in the fiscal year during which the production is first aired. The costs of other advert ising and promotion programs are expensed in the fiscal year incurred. |
Program Production Costs | The Company incurs costs in connection with the production of television programming and motion pictures. These costs are capitalized by the Company as they are incurred and amortized using the individual-film-forecast method, whereby these costs are amortized in the proportion that the current year’s revenues bear to management’s estimate of total ultimate revenues as of the beginning of such period related t o the program. These capitalized costs are reported at the lower of cost, less accumulated amortization, or fair value, and reviewed for impairment when an event or change in circumstances occurs that indicates that impairment may exist. The fair value is determined using a discounted cash flow model which is primarily based on management’s future revenue and cost estimates. |
Shipping and Handling | Hasbro expenses costs related to the shipment and handling of goods to customers as incurred. For 2016, 2015 and 2014, these costs were $ 180,270 , $ 159,854 and $ 157,326 , respectively, and are included in selling, distribution and administration expenses. |
Operating Leases | Hasbro records lease expense on a straight-line basis inclusive of rent concessions and in creases. Reimbursements from lessors for leasehold improvements are deferred and recognized as a reduction to lease expense over the remaining lease term. |
Income Taxes | Hasbro uses the asset and liability approach for financial accounting and reporting o f income taxes. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Deferred taxes are measured using rates expected to apply to taxable income in years in which those temporary differences are expected to reverse. A valuation allowance is provided for deferred tax assets if it is more likely than not such assets will be unrealized. Deferred income taxes have not been provided on the majority of undistributed earnings of international subsidiaries as the majority of such earnings are indefinitely reinvested by the Company. The Company uses a two-step process for the measurement of uncertain tax positions that have been taken or are expected to be taken in a tax return. The first step is a determination of whether the tax position should be recognized in the consolidated financial statements. The second step determines the measurement of the tax position. The Company records potential interest and penalties on uncertain tax positions as a component of income tax expense. |
Foreign Currency Translation | Foreign currency assets and liabilities are translated into U.S. dollars at period-end exchange rates, and revenues, costs and expenses are translated at weighted average exchange rates during each reporting period. Net earnings include gains or losses res ulting from foreign currency transactions and, when required, translation gains and losses resulting from the use of the U.S. dollar as the functional currency in highly inflationary economies. Other gains and losses resulting from translation of financial statements are a component of other comprehensive earnings (loss). |
Pension Plans, Postretirement and Postemployment Benefits | Pension expense and related amounts in the consolidated balance sheets are based on actuarial computations of current and future benefits. Actual results that differ from the actuarial assumptions are accumulated and, if outside a certain corridor, amortized over future periods and, therefore affect recognized expense in future periods. The corridor used for this purpose is equal t o 10% of the greater of plan liabilities or market asset values, and future periods vary by plan, but generally equal the actuarially determined average expected future working lifetime of active plan participants. The Company's policy is to fund amounts which are required by applicable regulations and which are tax deductible. The estimated amounts of future payments to be made under other retirement programs are being accrued currently over the period of active employment and are also included in pension expense. Hasbro has a contributory postretirement health and life insurance plan covering substantially all employees who retire under any of its United States defined benefit pension plans and meet certain age and length of service requirements. The cost of providing these benefits on behalf of employees who retired prior to 1993 is and will continue to be substantially borne by the Company. The cost of providing benefits on behalf of substantially all employees who retire after 1992 is borne by the emplo yee. It also has several plans covering certain groups of employees, which may provide benefits to such employees following their period of employment but prior to their retirement. The Company measures the costs of these obligations based on actuarial co mputations. |
Accounting for Stock-Based Compensation | The Company has a stock-based employee compensation plan for employees and non-employee members of the Company's Board of Directors. Under this plan the Company may grant stock options at or above the fair market value of the Company’s stock, as well as restricted stock, restricted stock units and contingent stock performance awards. All awards are measured at fair value at the date of the grant and amortized as expense on a straight-line basis over the requisite s ervice period of the award. For awards contingent upon Company performance, the measurement of the expense for these awards is based on the Company’s current estimate of its performance over the performance period. For awards contingent upon the achievemen t of market conditions, the probability of satisfying the market condition is considered in the estimation of the grant date fair value. See note 13 for further discussion. In March 2016, the FASB issued Accounting Standards Update No. 2016-09 (ASU 2016-0 9) Compensation - Stock Compensation (Topic 718), which simplifies the accounting for income taxes related to stock-based compensation. For public companies, this standard is effective for annual reporting periods beginning after December 15, 2016, and ear ly adoption is permitted. Under the new standard, the Company will elect to recognize forfeitures as they occur. Based upon the Company’s history of forfeitures, it is not expected that this election will have a material impact on its financial statements however, as any impact will be based on future forfeitures, the actual impact could differ from the Company’s expectation. The impact of the other aspects of ASU 2016-09 are based on the Company’s future stock price at the date of vesting or exercise of s hare-based payments as well as the timing of exercises and, as such, the Company cannot estimate the impact of these aspects, other than to expect that the adoption of this standard will benefit future tax expense in the short term, the extent to which can not be reasonably estimated at this time, nor can we estimate whether such benefits will continue or will result in increased tax expense in the longer term. |
Risk Management Contracts | 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 purchases of inventory and other cross-border currency requirements not denominated in the functional currency of the business unit, are primarily denominated in United States and Hong Kong dollars as well as Euros. All contracts are entered into with a number of counterparties, all of which are major financial institutions. The Company believes that a de fault by a 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. At the inception of the contracts, Hasbro designates its derivatives as either cash flow or fair value hedges. The Company formally documents all relationships between hedging instruments and hedged items as well as its risk management objectives and strategies for undertaking various hedge transactions. All hed ges designated as cash flow hedges are linked to forecasted transactions and the Company assesses, both at the inception of the hedge and on an on-going basis, the effectiveness of the derivatives used in hedging transactions in offsetting changes in the c ash flows of the forecasted transaction. The ineffective portion of a hedging derivative, if any, is immediately recognized in the consolidated statements of operations. The Company records all derivatives, such as foreign currency exchange contracts, o n the consolidated balance sheets at fair value. Changes in the derivative fair values that are designated as cash flow hedges and are effective are deferred and recorded as a component of Accumulated Other Comprehensive Loss (“AOCE”) until the hedged tran sactions occur and are then recognized in the consolidated statements of operations. The Company's foreign currency contracts hedging anticipated cash flows are designated as cash flow hedges. When it is determined that a derivative is not highly effective as a hedge, the Company discontinues hedge accounting prospectively. Any gain or loss deferred through that date remains in AOCE until the forecasted transaction occurs, at which time it is reclassified to the consolidated statements of operations. To the extent the transaction is no longer deemed probable of occurring, hedge accounting treatment is discontinued and amounts deferred would be reclassified to the consolidated statements of operations. In the event hedge accounting requirements are not met, g ains and losses on such instruments are included currently in the consolidated statements of operations. The Company uses derivatives to economically hedge intercompany loans denominated in foreign currencies. The Company does not use hedge accounting for these contracts as changes in the fair value of these contracts are substantially offset by changes in the fair value of the intercompany loans. Prior to the issuance of the Notes Due 2021 and Notes Due 2044, the Company entered into a forward-starting i nterest rate swap contract to hedge the anticipated U.S. Treasury interest rates on the anticipated debt issuance. These instruments, which were designated and effective as hedges, were terminated on the date of the related debt issuance and the then fair value of these instruments was recorded to AOCE and will be amortized through the consolidated statements of operations using an effective interest rate method over the life of the related debt. |
Net Earnings Per Common Share | Basic net earnings per share is computed by dividing net earnings by the weighted average number of shares outstanding for the year as well as awards that have not been issued but all contingencies have been met. Diluted net earnings per share is similar except that the weighted aver age number of shares outstanding is increased by dilutive securities, and net earnings are adjusted, if necessary, for certain amounts related to dilutive securities. Dilutive securities include shares issuable upon exercise of stock options for which the market price exceeds the exercise price, less shares which could have been purchased by the Company with the related proceeds. Dilutive securities also include shares issuable under restricted stock unit award agreements. Options and restricted stock unit awards totaling 277 and 674 for 2016 and 2 0 14, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been antidilutive . There were no antidilutive stock options or restricted stock unit awards to exclude from the diluted earnings per share calculation in 2015. 2016 2015 2014 Basic Diluted Basic Diluted Basic Diluted Net earnings attributable to Hasbro, Inc. $ 551,380 551,380 451,838 451,838 415,930 415,930 Average shares outstanding 125,292 125,292 125,006 125,006 128,411 128,411 Effect of dilutive securities: Options and other share-based awards – 1,674 – 1,682 – 1,475 Equivalent shares 125,292 126,966 125,006 126,688 128,411 129,886 Net earnings attributable to Hasbro, Inc. per share $ 4.40 4.34 3.61 3.57 3.24 3.20 |
Redeemable Noncontrolling Interests Policy [Policy Text Block] | Redeemable noncontrolling interests are those noncontrolling interests which are or may become redeemable at a fixed or determinable price on a fixed or determinable date, at the option of the holder, or upon occurrence of an event. The financial results and position of the redeemable noncontrolling interest are included in their entirety in the Company’s consolidated statements of operations and consolidated balance sheets. The value of the redeemable noncontrolling interests is presented in the consolidated balance sheets as temporary equity between liabilities and shareholders’ equity. Earnings (losses) attributable to the noncontrolling interes t are presented as a separate line on the consolidated statements of operations which is necessary to identify those earnings specifically attributable to Hasbro. Through 2016 , the Company had one investment with a redeemable noncontrolling interest which was the Company’s 70% majority interest in Backflip Studios, LLC (“Backflip”). Under the terms of our agreement with Backflip, the Company may have been required to acquire the remaining 30% in the future contingent on the achievement by Backflip of certai n predetermined financial performance metrics (the “metrics”). Because the Company did not know the ultimate timing that these metrics would be met and, thereby, could not estimate the purchase price of the remaining 30%, the value reported reflects the f air value of the redeemable noncontrolling interest on the date of acquisition which has been adjusted for cumulative earnings (losses) attributable to the noncontrolling interest since the date of acquisition as well as capital contributions made by or di stributions made to the noncontrolling interest since the acquisition. During the first quarter of 2017, the remaining 30% of Bac kflip Studios was acquired by Hasbro for no additional consideration, making it a wholly- owned subsidiary of the Company . |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 25, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Reconciliation of Net Earnings per Share | 2016 2015 2014 Basic Diluted Basic Diluted Basic Diluted Net earnings attributable to Hasbro, Inc. $ 551,380 551,380 451,838 451,838 415,930 415,930 Average shares outstanding 125,292 125,292 125,006 125,006 128,411 128,411 Effect of dilutive securities: Options and other share-based awards – 1,674 – 1,682 – 1,475 Equivalent shares 125,292 126,966 125,006 126,688 128,411 129,886 Net earnings attributable to Hasbro, Inc. per share $ 4.40 4.34 3.61 3.57 3.24 3.20 |
Other Comprehensive Earnings (T
Other Comprehensive Earnings (Tables) | 12 Months Ended |
Dec. 25, 2016 | |
Other comprehensive earnings (loss) [Abstract] | |
Schedule of Tax Effect in Statement of Comprehensive Income | 2016 2015 2014 Other comprehensive earnings (loss), tax effect: Tax benefit (expense) on cash flow hedging activities $ 1,340 (11,190) 8,259 Tax (expense) benefit on unrealized holding gains (94) 364 (1,077) Tax benefit (expense) on unrecognized pension and postretirement amounts 12,945 (928) 23,869 Reclassifications to earnings, tax effect: Tax (benefit) expense on cash flow hedging activities 4,098 5,435 (2,488) Tax (benefit) expense on unrecognized pension and postretirement amounts reclassified to the consolidated statements of operations (3,038) (1,861) (1,327) Total tax effect on other comprehensive earnings (loss) $ 15,251 (8,180) 27,236 |
Schedule of Accumulated Other Comprehensive Income (Loss) | Changes in the components of accumulated other comprehensive earnings (loss), net of tax are as follows: Unrealized Gains Holding Gains Foreign Total Accumulated Pension and (Losses) on 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 (20,829) 25,748 166 (5,033) 52 earnings (loss) Reclassifications from AOCE to earnings 5,359 (53,980) — — (48,621) Balance at December 25, 2016 $ (118,401) 51,085 1,424 (128,678) (194,570) 2015 Balance at December 28, 2014 $ (113,092) 43,689 1,900 (27,951) (95,454) Current period other comprehensive 6,892 86,155 (642) (95,694) (3,289) earnings (loss) Reclassifications from AOCE to earnings 3,269 (50,527) — — (47,258) Balance at December 27, 2015 $ (102,931) 79,317 1,258 (123,645) (146,001) 2014 Balance at December 29, 2013 $ (64,841) (7,313) — 38,019 (34,135) Current period other comprehensive (51,206) 47,600 1,900 (65,970) (67,676) earnings (loss) Reclassifications from AOCE to earnings 2,955 3,402 — — 6,357 Balance at December 28, 2014 $ (113,092) 43,689 1,900 (27,951) (95,454) |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 25, 2016 | |
Property, Plant and Equipment [Abstract] | |
Components of Property, Plant and Equipment | (3) Property, Plant and Equipment 2016 2015 Land and improvements $ 3,096 3,954 Buildings and improvements 175,684 176,982 Machinery, equipment and software 390,720 350,471 569,500 531,407 Less accumulated depreciation 383,713 363,601 185,787 167,806 Tools, dies and molds, net of accumulated depreciation 81,611 69,721 Total property, plant and equipment, net $ 267,398 237,527 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 25, 2016 | |
Goodwill and Intangibles [Abstract] | |
Schedule of Goodwill | Entertainment U.S. and Canada International and Licensing Total 2016 Balance at December 27, 2015 $ 296,978 170,110 125,607 592,695 Acquired during the period — — 11,821 11,821 Impairment during the period — — (32,858) (32,858) Foreign exchange translation — (277) (826) (1,103) Balance at December 25, 2016 $ 296,978 169,833 103,744 570,555 2015 Balance at December 28, 2014 $ 296,978 170,853 125,607 593,438 Foreign exchange translation — (743) — (743) Balance at December 27, 2015 $ 296,978 170,110 125,607 592,695 |
Schedule of Other Intangibles | 2016 2015 Acquired product rights $ 789,689 789,781 Licensed rights of entertainment properties 256,555 256,555 Accumulated amortization (876,033) (841,267) Amortizable intangible assets 170,211 205,069 Product rights with indefinite lives 75,738 75,738 Total other intangibles, net $ 245,949 280,807 |
Schedule of Expected Amortization Expense | 2017 $ 29,000 2018 17,000 2019 36,000 2020 40,000 2021 18,000 |
Program Production Costs (Table
Program Production Costs (Tables) | 12 Months Ended |
Dec. 25, 2016 | |
Program Production Costs [Abstract] | |
Schedule of Program Production Costs | 2016 2015 Television programming $ 35,683 33,730 Released, less amortization In production 25,062 36,092 Pre-production 1,833 84 Theatrical programming In production 20,271 5,640 Total program production costs $ 82,849 75,546 |
Accrued Liabilities (Tables)
Accrued Liabilities (Tables) | 12 Months Ended |
Dec. 25, 2016 | |
Accrued Liabilities [Abstract] | |
Schedule of Accrued Liabilities | (8) Accrued Liabilities Components of accrued liabilities are as follows: 2016 2015 Royalties $ 158,353 127,557 Advertising 73,963 60,196 Payroll and management incentives 100,248 93,578 Dividends 63,501 57,406 Other 379,974 320,137 Total accrued liabilities $ 776,039 658,874 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 25, 2016 | |
Long-Term Debt [Abstract] | |
Schedule of Long-Term Debt Instruments | 2016 2015 Carrying Cost Fair Value Carrying Cost Fair Value 6.35% Notes Due 2040 $ 500,000 584,850 500,000 556,300 6.30% Notes Due 2017 350,000 361,900 350,000 374,045 5.10% Notes Due 2044 300,000 297,600 300,000 286,710 3.15% Notes Due 2021 300,000 300,450 300,000 300,060 6.60% Debentures Due 2028 109,895 123,984 109,895 121,269 Total long-term debt 1,559,895 1,668,784 1,559,895 1,638,384 Less: Current portion 350,000 361,900 — — Less: Deferred debt expenses 11,216 — 12,780 — Long-term debt $ 1,198,679 1,306,884 1,547,115 1,638,384 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 25, 2016 | |
Income Taxes [Abstract] | |
Schedule of Income Taxes Attributable to Earnings Before Income Taxes | 2016 2015 2014 Current United States $ 78,958 101,591 70,390 State and local 3,208 3,352 3,134 International 77,834 71,054 62,909 160,000 175,997 136,433 Deferred United States 11,989 (13,771) (15,448) State and local 411 (472) (530) International (13,062) (4,711) 6,223 (662) (18,954) (9,755) Total income taxes $ 159,338 157,043 126,678 |
Schedule of Effective Income Tax Rate Reconciliation | 2016 2015 2014 Statutory income tax rate 35.0% 35.0% 35.0% State and local income taxes, net 0.3 0.3 0.3 Tax on international earnings (15.8) (15.6) (6.4) Change in unrecognized tax benefits 1.7 4.3 (5.7) Other, net 1.8 2.0 0.3 23.0% 26.0% 23.5% |
Schedule of Components of Earnings Before Income Taxes, Determined by Tax Jurisdiction | 2016 2015 2014 United States $ 146,013 155,120 190,769 International 546,476 448,795 349,219 Total earnings before income taxes $ 692,489 603,915 539,988 |
Schedule of Deferred Tax Assets and Liabilities | 2016 2015 Deferred tax assets: Accounts receivable $ 32,277 23,568 Inventories 17,913 15,168 Loss and credit carryforwards 29,752 28,893 Operating expenses 48,024 43,029 Pension 35,255 48,560 Other compensation 66,220 62,882 Postretirement benefits 12,525 9,253 Interest rate hedge 10,286 10,937 Tax sharing agreement 17,339 18,379 Other 25,513 29,768 Gross deferred tax assets 295,104 290,437 Valuation allowance (24,065) (23,593) Net deferred tax assets 271,039 266,844 Deferred tax liabilities: Depreciation and amortization of long-lived assets 49,484 53,755 Equity method investment 7,056 8,205 Other 7,634 14,068 Deferred tax liabilities 64,174 76,028 Net deferred income taxes $ 206,865 190,816 Certain reclassifications have been made to prior year presentation to conform to current year presentation. |
Schedule of Deferred Tax Assets and Liabilities by Balance Sheet Location | 2016 2015 Other assets 212,317 199,563 Other liabilities (5,452) (8,747) Net deferred income taxes $ 206,865 190,816 |
Schedule of Unrecognized Tax Benefits Roll Forward | 2016 2015 2014 Balance at beginning of year $ 63,549 35,416 55,459 Gross increases in prior period tax positions 2,727 491 34,225 Gross decreases in prior period tax positions (3,103) (1,773) (1,510) Gross increases in current period tax positions 34,155 32,547 8,470 Decreases related to settlements with tax authorities (11,662) (355) (58,652) Decreases from the expiration of statute of limitations (5,278) (2,777) (2,576) Balance at end of year $ 80,388 63,549 35,416 |
Fair Value of Financial Instr39
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 25, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value Hierarchy | Fair Value Measurements Using Significant Quoted Prices in Other Significant Active Markets for Observable Unobservable Fair Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) December 25, 2016 Assets: Available-for-sale securities $ 3,736 3,736 — — Derivatives 87,894 — 87,894 — Total assets $ 91,630 3,736 87,894 — Liabilities: Derivatives $ 11,309 — 11,309 — Option agreement 28,770 — — 28,770 Total Liabilities $ 40,079 — 11,309 28,770 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) Net losses from change in fair value (410) (3,020) Balance at end of year $ (28,770) (28,360) |
Stock Options, Other Stock Aw40
Stock Options, Other Stock Awards and Warrants (Tables) | 12 Months Ended |
Dec. 25, 2016 | |
Stock Options, Other Stock Awards and Warrants [Abstract] | |
Schedule of Total Compensation Expense Related to Stock Options, Restricted Stock Units and Stock Performance Awards | 2016 2015 2014 Cost of sales $ 200 366 395 Product development 3,248 3,527 3,874 Selling, distribution and administration 58,176 49,987 31,883 61,624 53,880 36,152 Income tax benefit 20,298 13,489 11,745 $ 41,326 40,391 24,407 2016 2015 2014 Stock performance awards $ 34,248 27,960 11,315 Restricted stock units 19,908 19,052 15,643 Stock Options 5,838 5,419 7,473 Non-employee awards 1,630 1,449 1,834 Cash-settled restricted stock units — — (113) 61,624 53,880 36,152 Income tax benefit 20,298 13,489 11,745 $ 41,326 40,391 24,407 |
Schedule of Restricted Stock Awards and Restricted Stock Units | Inputs Grant date stock price $47.28 Stock price volatility 26.12% Risk-free interest rate 0.65% Dividend yield 3.38% 2016 2015 2014 Outstanding at beginning of year 955 937 702 Granted 245 254 281 Forfeited (41) (52) (39) Vested (364) (184) (7) Outstanding at end of year 795 955 937 Weighted average grant-date fair value: Granted $ 75.23 62.95 52.06 Forfeited $ 59.37 51.57 44.44 Vested $ 43.89 39.87 41.19 Outstanding at end of year $ 61.65 51.22 45.74 |
Schedule of Stock Performance Awards | 2016 2015 2014 Outstanding at beginning of year 992 655 943 Granted 529 362 322 Forfeited (23) (25) (32) Cancelled — — (578) Vested (424) — — Outstanding at end of year 1,074 992 655 Weighted average grant-date fair value: Granted $ 74.69 61.85 52.11 Forfeited $ 61.86 53.45 43.21 Cancelled $ — — 36.14 Vested $ 47.21 — — Outstanding at end of year $ 62.19 53.17 49.57 |
Schedule of Stock Option Information | 2016 2015 2014 Outstanding at beginning of year 3,445 4,186 5,543 Granted 492 549 684 Exercised (1,143) (1,280) (1,951) Expired or forfeited (26) (10) (90) Outstanding at end of year 2,768 3,445 4,186 Exercisable at end of year 1,708 2,208 2,374 Weighted average exercise price: Granted $ 74.42 61.77 52.11 Exercised $ 41.75 37.54 31.07 Expired or forfeited $ 56.43 46.38 39.85 Outstanding at end of year $ 53.21 46.41 41.68 Exercisable at end of year $ 45.50 41.36 38.90 |
Schedule of weighted average assumptions used to determine the fair value of option grants | 2016 2015 2014 Risk-free interest rate 1.16% 1.34% 1.42% Expected dividend yield 2.74% 2.98% 3.30% Expected volatility 26% 23% 26% Expected option life 5 years 5 years 5 years |
Pension, Postretirement and P41
Pension, Postretirement and Postemployment Benefits (Tables) | 12 Months Ended |
Dec. 25, 2016 | |
Pension, Postretirement and Postemployment Benefits [Abstract] | |
Summary of Changes in Projected Benefit Obligation, Plan Assets and Funded Status | Pension Postretirement 2016 2015 2016 2015 Change in Projected Benefit Obligation Projected benefit obligation – beginning $ 361,060 383,068 26,247 28,017 Service cost 2,100 1,918 532 567 Interest cost 16,106 15,683 1,175 1,154 Actuarial (gain) loss 17,353 (17,968) 2,380 (741) Curtailment — 660 — (746) Benefits paid (22,508) (20,202) (1,850) (2,004) Expenses paid (1,287) (2,099) — — Projected benefit obligation – ending $ 372,824 361,060 28,484 26,247 Accumulated benefit obligation – ending $ 372,824 361,060 28,484 26,247 Change in Plan Assets Fair value of plan assets – beginning $ 259,329 272,010 — — Actual return on plan assets 8,961 (3,414) — — Employer contribution 64,885 13,034 — — Benefits paid (22,508) (20,202) — — Expenses paid (1,287) (2,099) — — Fair value of plan assets – ending $ 309,380 259,329 — — Reconciliation of Funded Status Projected benefit obligation $ (372,824) (361,060) (28,484) (26,247) Fair value of plan assets 309,380 259,329 — — Funded status (63,444) (101,731) (28,484) (26,247) Unrecognized net loss 138,529 120,482 2,420 41 Net amount recognized $ 75,085 18,751 (26,064) (26,206) Accrued liabilities $ (2,553) (2,663) (1,599) (1,800) Other liabilities (60,891) (99,068) (26,885) (24,447) Accumulated other comprehensive earnings (loss) 138,529 120,482 2,420 41 Net amount recognized $ 75,085 18,751 (26,064) (26,206) |
Assumptions used to determine year-end pension and postretirement benefit obligations | Assumptions used to determine the year-end pension and postretirement benefit obligations are as follows: 2016 2015 Pension Weighted average discount rate 4.22% 4.58% Mortality table RP-2014/Scale BB RP-2014/Scale BB Postretirement Discount rate 4.26% 4.64% Health care cost trend rate assumed for next year 7.00% 7.00% Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.00% 5.00% Year that the rate reaches the ultimate trend 2021 2021 |
Fair Values of Plan Assets by Asset Class and Fair Value Hierarchy Level | Fair value measurements using: Quoted Prices in Active Markets For Significant Identical Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) 2016 Equity: Large Cap $ 29,100 29,100 — — Small Cap 29,200 29,200 — — International measured at net asset value (a) 40,100 — — — Other measured at net asset value (a) 1,300 — — — Fixed Income measured at net asset value (a) 119,500 — — — Total Return Fund measured at net asset value (a) 29,000 — — — Cash Equivalents measured as net asset value (a) 61,100 — — — $ 309,300 58,300 — — 2015 Equity: Large Cap $ 27,600 27,600 — — Small Cap 24,300 24,300 — — International measured at net asset value (a) 37,500 — — — Other measured at net asset value (a) 2,500 — — — Fixed Income measured at net asset value (a) 122,600 — — — Total Return Fund measured at net asset value (a) 27,700 — — — Cash Equivalents measured as net asset value (a) 17,100 — — — $ 259,300 51,900 — — (a) Certain investments that are measured at fair value using the net asset value per share are not classified in the fair value hierarchy. The fair value amounts presented in this table are intended to permit reconciliation of the fair value hierarchy to the amounts presented in the Schedule of Changes in Plan Assets disclosed previously in this note. |
Components of Net Periodic Benefit Cost | The following is a detail of the components of the net periodic benefit cost for the three years ended December 25, 2016. 2016 2015 2014 Components of Net Periodic Cost Pension Service cost $ 2,100 1,918 1,824 Interest cost 16,106 15,683 16,209 Expected return on assets (17,013) (18,538) (18,631) Amortization of prior service cost — 65 98 Amortization of actuarial loss 7,361 7,468 3,351 Curtailment/settlement losses — 781 — Net periodic benefit cost $ 8,554 7,377 2,851 Postretirement Service cost $ 532 567 543 Interest cost 1,175 1,154 1,337 Amortization of actuarial (gain) loss — (304) (457) Curtailment gain — (3,842) — Net periodic benefit cost (income) $ 1,707 (2,425) 1,423 See note 17 for additional information on the 2015 curtailment (gain) loss. |
Assumptions Used to Determine Net Periodic Benefit Cost of Pension Plan and Postretirement Plan | 2016 2015 2014 Pension Weighted average discount rate 4.58% 4.22% 5.02% Long-term rate of return on plan assets 6.75% 7.00% 7.00% Postretirement Discount rate 4.64% 4.49% 5.11% Health care cost trend rate assumed for next year 7.00% 6.50% 7.00% Rate to which the cost trend rate is assumed to decline (ultimate trend rate) 5.00% 5.00% 5.00% Year that the rate reaches the ultimate trend rate 2021 2020 2020 |
Schedule of Expected Benefit Payments | Pension Postretirement 2017 $ 20,034 1,633 2018 20,108 1,593 2019 20,520 1,541 2020 20,995 1,497 2021 21,694 1,452 2022-2026 116,258 6,829 |
Derivative Financial Instrume42
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 25, 2016 | |
Derivative Financial Instruments [Abstract] | |
Summary of Cash Flow Hedging Instruments | 2016 2015 Hedged transaction Notional Fair Notional Fair Amount Value Amount Value Inventory purchases $ 945,728 60,520 1,380,488 108,521 Sales 290,181 9,775 97,350 803 Royalties and Other 198,849 1,633 54,360 (1,886) Total $ 1,434,758 71,928 1,532,198 107,438 |
Schedule of Cash Flow Hedging Instruments, Statements of Financial Performance and Financial Position, Location | 2016 2015 Prepaid expenses and other current assets Unrealized gains $ 34,265 78,910 Unrealized losses (2,075) (5,932) Net unrealized gain $ 32,190 72,978 Other assets Unrealized gains $ 51,839 35,366 Unrealized losses (792) (710) Net unrealized gain $ 51,047 34,656 Accrued liabilities Unrealized gains $ 8,481 — Unrealized losses (19,790) — Net unrealized loss $ (11,309) — Other liabilities Unrealized gains $ — 241 Unrealized losses — (437) Net unrealized loss $ — (196) |
Schedule of Derivative Instruments, Gain (Loss) in Statement of Operations | 2016 2015 2014 Consolidated Statements of Operations Classification Cost of sales $ 57,786 66,378 973 Sales 7,467 (9,219) (3,741) Royalties and other (5,776) (566) (2,028) Net realized gains (losses) $ 59,477 56,593 (4,796) |
Fair Values of Undesignated Derivative Financial Instruments | 2016 2015 Prepaid expenses and other assets Unrealized gains $ 5,854 - Unrealized losses (1,197) - Net unrealized gain $ 4,657 - Accrued liabilities Unrealized gains $ - 416 Unrealized losses - (1,460) Net unrealized loss $ - (1,044) Total unrealized gain (losses) $ 4,657 (1,044) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 25, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Information and Reconciliation by Segment | Information by segment and a reconciliation to reported amounts are as follows: Revenues from Operating Depreciation External Affiliate Profit and Capital Total Customers Revenue (Loss) Amortization Additions Assets 2016 U.S. and Canada $ 2,559,907 7,091 522,287 12,764 8,107 2,559,792 International 2,194,651 1,908 294,497 20,768 7,258 2,368,761 Entertainment and Licensing 265,205 23,220 49,876 9,869 13,072 692,898 Global Operations (a) 59 1,617,370 19,440 78,249 89,051 2,326,566 Corporate and eliminations (b) — (1,649,589) (98,052) 32,820 37,412 (2,856,651) Consolidated Total $ 5,019,822 — 788,048 154,470 154,900 5,091,366 2015 U.S. and Canada $ 2,225,518 5,339 430,707 14,946 3,508 2,654,270 International 1,971,875 15 255,365 20,434 7,029 2,345,847 Entertainment and Licensing 244,685 23,144 76,868 16,251 387 567,753 Global Operations (a) 5,431 1,583,665 12,022 70,794 83,304 2,410,142 Corporate and eliminations (b) — (1,612,163) (83,029) 32,902 47,794 (3,257,295) Consolidated Total $ 4,447,509 — 691,933 155,327 142,022 4,720,717 2014 U.S. and Canada $ 2,022,443 5,957 334,702 20,689 1,131 3,663,497 International 2,022,997 170 270,505 23,086 3,063 2,422,046 Entertainment and Licensing 219,465 22,401 60,550 21,827 807 783,878 Global Operations (a) 12,302 1,564,654 15,767 69,442 71,763 2,433,888 Corporate and eliminations (b) — (1,593,182) (46,149) 22,922 36,624 (4,785,209) Consolidated Total $ 4,277,207 — 635,375 157,966 113,388 4,518,100 |
Schedule of Geographic Information | 2016 2015 2014 Europe $ 1,404,478 1,236,846 1,258,078 Latin America 463,638 426,109 463,512 Asia Pacific 326,535 308,920 301,407 Net revenues $ 2,194,651 1,971,875 2,022,997 |
Net revenues by product category | 2016 2015 2014 Boys $ 1,849,645 1,775,917 1,483,952 Games 1,387,077 1,276,532 1,259,782 Girls 1,193,877 798,240 1,022,633 Preschool 589,223 596,820 510,840 Net revenues $ 5,019,822 4,447,509 4,277,207 2016 2015 2014 Franchise brands $ 2,327,668 2,285,414 2,345,128 Partner brands 1,412,770 1,101,305 654,057 Hasbro gaming 813,433 662,319 643,615 Emerging brands 465,951 398,471 634,407 Net revenues $ 5,019,822 4,447,509 4,277,207 |
Schedule of Net Revenues by International Region | 2016 2015 2014 Net revenues United States $ 2,575,696 2,278,613 2,040,476 International 2,444,126 2,168,896 2,236,731 5,019,822 4,447,509 4,277,207 Long-lived assets United States 933,848 932,790 977,035 International 150,054 178,239 178,420 $ 1,083,902 1,111,029 1,155,455 |
Quarterly Financial Data (Una44
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 25, 2016 | |
Quarterly Financial Data (Unaudited) [Abstract] | |
Quarterly Financial Information [Table Text Block] | Quarter First Second Third Fourth Full Year 2016 Net revenues $ 831,180 878,945 1,679,757 1,629,940 5,019,822 Operating profit 85,916 84,874 362,101 255,157 788,048 Earnings before income taxes 59,213 67,020 346,324 219,932 692,489 Net earnings 46,971 49,419 256,162 180,599 533,151 Net earnings attributable to Hasbro, Inc. 48,751 52,106 257,798 192,725 551,380 Per common share Net earnings attributable to Hasbro, Inc. Basic $ 0.39 0.42 2.05 1.54 4.40 Diluted 0.38 0.41 2.03 1.52 4.34 Market price High $ 78.94 87.63 87.94 86.25 87.94 Low 66.96 77.80 76.16 77.27 66.96 Cash dividends declared $ 0.51 0.51 0.51 0.51 2.04 Quarter First Second Third Fourth Full Year 2015 Net revenues $ 713,500 797,658 1,470,997 1,465,354 4,447,509 Operating profit 54,205 75,500 303,527 258,701 691,933 Earnings before income taxes 34,315 53,646 284,617 231,337 603,915 Net earnings 25,821 40,282 206,375 174,394 446,872 Net earnings attributable to Hasbro, Inc. 26,667 41,809 207,599 175,763 451,838 Per common share Net earnings attributable to Hasbro, Inc. Basic $ 0.21 0.33 1.66 1.41 3.61 Diluted 0.21 0.33 1.64 1.39 3.57 Market price High $ 63.47 78.91 84.42 79.93 84.42 Low 51.42 61.13 60.38 64.91 51.42 Cash dividends declared $ 0.46 0.46 0.46 0.46 1.84 |
Summary of Significant Accoun45
Summary of Significant Accounting Policies (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 25, 2016USD ($)$ / shares | Sep. 25, 2016USD ($)$ / shares | Jun. 26, 2016USD ($)$ / shares | Mar. 27, 2016USD ($)$ / shares | Dec. 27, 2015USD ($)$ / shares | Sep. 27, 2015USD ($)$ / shares | Jun. 28, 2015USD ($)$ / shares | Mar. 29, 2015USD ($)$ / shares | Dec. 25, 2016USD ($)$ / sharesshares | Dec. 27, 2015USD ($)$ / sharesshares | Dec. 28, 2014USD ($)$ / sharesshares | Sep. 23, 2014 | Oct. 31, 2009 | |
Long-lived assets [Line Items] | |||||||||||||
Equity method ownership percentage | 40.00% | 50.00% | |||||||||||
Maximum period for an investment to be classified as highly liquid | three months | ||||||||||||
Shipping and handling expense | $ | $ 180,270 | $ 159,854 | $ 157,326 | ||||||||||
Options excluded from calculation of diluted earnings per share (in shares) | 277 | 0 | 674 | ||||||||||
Earnings per share, basic [Abstract] | |||||||||||||
Net earnings attributable to Hasbro, Inc. | $ | $ 192,725 | $ 257,798 | $ 52,106 | $ 48,751 | $ 175,763 | $ 207,599 | $ 41,809 | $ 26,667 | $ 551,380 | $ 451,838 | $ 415,930 | ||
Average shares outstanding (in shares) | 125,292 | 125,006 | 128,411 | ||||||||||
Net earnings per share, basic (in dollars per share) | $ / shares | $ 1.54 | $ 2.05 | $ 0.42 | $ 0.39 | $ 1.41 | $ 1.66 | $ 0.33 | $ 0.21 | $ 4.4 | $ 3.61 | $ 3.24 | ||
Earnings per share, diluted [Abstract] | |||||||||||||
Net earnings attributable to Hasbro, Inc. | $ | $ 192,725 | $ 257,798 | $ 52,106 | $ 48,751 | $ 175,763 | $ 207,599 | $ 41,809 | $ 26,667 | $ 551,380 | $ 451,838 | $ 415,930 | ||
Average shares outstanding (in shares) | 125,292 | 125,006 | 128,411 | ||||||||||
Effect of dilutive securities: [Abstract] | |||||||||||||
Options and other share-based awards (in shares) | 1,674 | 1,682 | 1,475 | ||||||||||
Equivalent shares (in shares) | 126,688 | 129,886 | |||||||||||
Net earnings per share, diluted (in dollars per share) | $ / shares | $ 1.52 | $ 2.03 | $ 0.41 | $ 0.38 | $ 1.39 | $ 1.64 | $ 0.33 | $ 0.21 | $ 4.34 | $ 3.57 | $ 3.2 | ||
Minimum [Member] | |||||||||||||
Long-lived assets [Line Items] | |||||||||||||
Finite-lived intangible assets, useful life | 4 years | ||||||||||||
Maximum [Member] | |||||||||||||
Long-lived assets [Line Items] | |||||||||||||
Finite-lived intangible assets, useful life | 20 years | ||||||||||||
Joint Venture [Member] | |||||||||||||
Long-lived assets [Line Items] | |||||||||||||
Equity method ownership percentage | 40.00% | 40.00% | |||||||||||
Number of significant equity method investments | 1 | ||||||||||||
Joint Venture [Member] | Minimum [Member] | |||||||||||||
Long-lived assets [Line Items] | |||||||||||||
Equity method ownership percentage | 20.00% | 20.00% | |||||||||||
Joint Venture [Member] | Maximum [Member] | |||||||||||||
Long-lived assets [Line Items] | |||||||||||||
Equity method ownership percentage | 50.00% | 50.00% | |||||||||||
Land and Improvements [Member] | Minimum [Member] | |||||||||||||
Long-lived assets [Line Items] | |||||||||||||
Depreciation period | 15 years | ||||||||||||
Land and Improvements [Member] | Maximum [Member] | |||||||||||||
Long-lived assets [Line Items] | |||||||||||||
Depreciation period | 19 years | ||||||||||||
Buildings and Improvements [Member] | Minimum [Member] | |||||||||||||
Long-lived assets [Line Items] | |||||||||||||
Depreciation period | 15 years | ||||||||||||
Buildings and Improvements [Member] | Maximum [Member] | |||||||||||||
Long-lived assets [Line Items] | |||||||||||||
Depreciation period | 25 years | ||||||||||||
Machinery and Equipment [Member] | Minimum [Member] | |||||||||||||
Long-lived assets [Line Items] | |||||||||||||
Depreciation period | 3 years | ||||||||||||
Machinery and Equipment [Member] | Maximum [Member] | |||||||||||||
Long-lived assets [Line Items] | |||||||||||||
Depreciation period | 12 years | ||||||||||||
Tools, Dies and Molds [Member] | Maximum [Member] | |||||||||||||
Long-lived assets [Line Items] | |||||||||||||
Depreciation period | 3 years |
Other Comprehensive Loss (Detai
Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Other comprehensive earnings (loss) [Abstract] | |||
Tax benefit (expense) on cash flow hedging activities | $ 1,340 | $ (11,190) | $ 8,259 |
Tax benefit (expense) on unrealized holding gains | (94) | 364 | (1,077) |
Tax benefit (expense) on unrecognized pension and postretirement amounts | 12,945 | (928) | 23,869 |
Reclassifications to earnings, tax effect: Tax (benefit) expense on cash flow hedging activities | 4,098 | 5,435 | (2,488) |
Reclassifications to earnings, tax effect: Tax (benefit) expense on unrecognized pension and postretirement amounts | (3,038) | (1,861) | (1,327) |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Total | 15,251 | (8,180) | 27,236 |
Gain On Cash Flow Hedge Ineffectiveness Net Of Tax | 1,428 | 1,111 | 58 |
Foreign Currency and Interest Rate Cash Flow Hedge Gain (Loss) To Be Reclassified During Next12 Months Net Of Tax | 24,476 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive earnings (loss), Beginning of Year | (146,001) | (95,454) | (34,135) |
Other comprehensive (loss) earnings | 52 | (3,289) | (67,676) |
Reclassifications from AOCE to earnings | (48,621) | (47,258) | 6,357 |
Total accumulated other comprehensive earnings (loss), End of Period | (194,570) | (146,001) | (95,454) |
Pension and Postretirement Amounts [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive earnings (loss), Beginning of Year | (102,931) | (113,092) | (64,841) |
Other comprehensive (loss) earnings | (20,829) | 6,892 | (51,206) |
Reclassifications from AOCE to earnings | 5,359 | 3,269 | 2,955 |
Total accumulated other comprehensive earnings (loss), End of Period | (118,401) | (102,931) | (113,092) |
Gains (Losses) On Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive earnings (loss), Beginning of Year | 79,317 | 43,689 | (7,313) |
Other comprehensive (loss) earnings | 25,748 | 86,155 | 47,600 |
Reclassifications from AOCE to earnings | (53,980) | (50,527) | 3,402 |
Total accumulated other comprehensive earnings (loss), End of Period | 51,085 | 79,317 | 43,689 |
Foreign Currency Translation Adjustments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive earnings (loss), Beginning of Year | (123,645) | (27,951) | 38,019 |
Other comprehensive (loss) earnings | (5,033) | (95,694) | (65,970) |
Reclassifications from AOCE to earnings | 0 | 0 | 0 |
Total accumulated other comprehensive earnings (loss), End of Period | (128,678) | (123,645) | (27,951) |
Unrealized Holding Gains on Available-for-Sale Securities [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive earnings (loss), Beginning of Year | 1,258 | 1,900 | 0 |
Other comprehensive (loss) earnings | 166 | (642) | 1,900 |
Reclassifications from AOCE to earnings | 0 | 0 | 0 |
Total accumulated other comprehensive earnings (loss), End of Period | 1,424 | $ 1,258 | $ 1,900 |
Interest Rate Contract [Member] | Gains (Losses) On Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive earnings (loss), End of Period | (18,216) | ||
Foreign Exchange Forward [Member] | Gains (Losses) On Derivative Instruments [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Total accumulated other comprehensive earnings (loss), End of Period | $ (69,301) |
Property, Plant and Equipment47
Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Dec. 25, 2016 | Dec. 27, 2015 |
Components of property, plant and equipment [Abstract] | ||
Gross property, plant and equipment | $ 569,500 | $ 531,407 |
Less accumulated depreciation | 383,713 | 363,601 |
Net property, plant and equipment less tools, dies and molds | 185,787 | 167,806 |
Tools, dies and molds, net of accumulated depreciation | 81,611 | 69,721 |
Net property, plant and equipment | 267,398 | 237,527 |
Land and Improvements [Member] | ||
Components of property, plant and equipment [Abstract] | ||
Gross property, plant and equipment | 3,096 | 3,954 |
Buildings and Improvements [Member] | ||
Components of property, plant and equipment [Abstract] | ||
Gross property, plant and equipment | 175,684 | 176,982 |
Machinery, Equipment and Software [Member] | ||
Components of property, plant and equipment [Abstract] | ||
Gross property, plant and equipment | $ 390,720 | $ 350,471 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 25, 2016 | Dec. 27, 2015 | |
Goodwill [Roll Forward] | ||
Goodwill | $ 592,695 | $ 593,438 |
Acquired During Period | 11,821 | 0 |
Impairment During the Period | (32,858) | 0 |
Foreign exchange translation | (1,103) | (743) |
Goodwill | 570,555 | 592,695 |
US and Canada [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 296,978 | 296,978 |
Foreign exchange translation | 0 | 0 |
Goodwill | 296,978 | 296,978 |
International [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 170,110 | 170,853 |
Foreign exchange translation | (277) | (743) |
Goodwill | 169,833 | 170,110 |
Entertainment and Licensing [Member] | ||
Goodwill [Roll Forward] | ||
Goodwill | 125,607 | 125,607 |
Acquired During Period | 11,821 | |
Impairment During the Period | (32,858) | |
Foreign exchange translation | (826) | 0 |
Goodwill | $ 103,744 | $ 125,607 |
Goodwill and Intangibles, Finit
Goodwill and Intangibles, Finite-Lived Intangible Assets by Major Class and Acquisitions (Details) - USD ($) $ in Thousands | Dec. 25, 2016 | Dec. 27, 2015 |
Summary of Other Intangible Assets [Abstract] | ||
Acquired product rights | $ 789,689 | $ 789,781 |
Licensed rights of entertainment properties | 256,555 | 256,555 |
Accumulated amortization | (876,033) | (841,267) |
Amortizable intangible assets | 170,211 | 205,069 |
Product rights with indefinite lives | 75,738 | 75,738 |
Total other intangibles, net | 245,949 | $ 280,807 |
Intangible Assets, Future Amortization Expense By Year [Abstract] | ||
2,017 | 29,000 | |
2,018 | 17,000 | |
2,019 | 36,000 | |
2,020 | 40,000 | |
2,021 | $ 18,000 |
Equity Method Investment (Detai
Equity Method Investment (Details) $ in Thousands | Oct. 31, 2009USD ($)Royality_Installment_Payments | Dec. 25, 2016USD ($) | Dec. 27, 2015USD ($) | Dec. 28, 2014USD ($) | Sep. 23, 2014 | Dec. 29, 2013USD ($) |
Schedule of Equity Method Investments [Line Items] | ||||||
Acquired interest in joint venture, Discovery Family Channel | 50.00% | 40.00% | ||||
Payment for purchase of interest in joint venture | $ 300,000 | |||||
Equity Method Investment and Joint Venture Investment Restructuring Net Pre-Tax Charges | $ 28,326 | |||||
Percentage of fair market value of equity method investment | 80.00% | |||||
Present value of total expected future payments at acquisition date based on tax benefits | 67,900 | |||||
Minimum royalty guarantee | $ 125,000 | |||||
Number of annual installments for minimum royalty guarantee | Royality_Installment_Payments | 5 | |||||
Earn-out period for minimum royalty guarantee | 10 years | |||||
Amount of annual installment for minimum royalty guarantee | $ 25,000 | $ 25,000 | ||||
Royalty Expense [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Royalty benefit as a result of licensing terms modification | $ 2,328 | |||||
Discovery Communications, Inc. [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Joint Venture - Ownership Interest | 60.00% | |||||
Proceeds from partial sale of equity interest in joint venture | 64,400 | |||||
Equity Method Investment and Joint Venture Investment Option Agreement Charges | 25,590 | |||||
Payments made to Discovery under tax sharing agreement | $ 6,520 | $ 4,971 | 7,010 | |||
Net (gains) losses related to change in value of joint venture option agreement | 410 | 3,020 | (250) | |||
Discovery Communications, Inc. [Member] | Other Liabilities [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Option Agreement | 28,770 | 28,360 | ||||
Liability associated with investment in joint venture, including imputed interest | $ 52,473 | 54,521 | ||||
Discovery Communications, Inc. [Member] | Other Expense [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Reduction of payments due to discovery under tax sharing agreement | 12,834 | |||||
Discovery Family Channel [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Acquired interest in joint venture, Discovery Family Channel | 40.00% | |||||
Prepaid Royalties | $ 66,017 | 77,482 | ||||
Interest in joint venture | 242,397 | 242,932 | ||||
Discovery Family Channel [Member] | Other Assets [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Prepaid Royalties | 58,814 | 63,247 | ||||
Discovery Family Channel [Member] | Prepaid Expenses and Other Current Assets [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Prepaid Royalties | 7,203 | 14,235 | ||||
Discovery Family Channel [Member] | Other Expense [Member] | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Earnings (loss) of joint venture | $ 23,764 | $ 19,045 | (9,187) | |||
Share of losses of joint venture related to restructuring | $ 17,278 |
Program Production Costs (Detai
Program Production Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 25, 2016 | Dec. 27, 2015 | |
Program Production Costs [Abstract] | ||
Released, less amortization | $ 35,683 | $ 33,730 |
Theatrical Film Costs, Production | 20,271 | 5,640 |
In production | 25,062 | 36,092 |
Pre-production | 1,833 | 84 |
Total program production costs | $ 82,849 | $ 75,546 |
Period of amortization for the unamortized television programming costs related to released productions | next three years | |
Amortization expected for the released programs in next operating period | $ 22,690 |
Financing Arrangements (Details
Financing Arrangements (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 25, 2016 | Dec. 27, 2015 | |
Short-term borrowings [Abstract] | ||
Line of credit facility, available borrowing capacity | $ 700,000 | |
Maturities of the notes, maximum | 397 days | |
Commercial paper program, notes outstanding | $ 163,300 | $ 160,000 |
Commercial paper program, weighted average interest rate | 0.97% | 0.61% |
Unsecured Committed [Member] | ||
Short-term borrowings [Abstract] | ||
Maturity Date, Line of credit facility | Mar. 30, 2020 | |
Line of credit facility, available borrowing capacity | $ 700,000 | |
Commitment fee based on unused portion of line of credit facility | 0.12% | |
Interest rate under line of credit facility | Eurocurrency Rate plus 1.125%. | |
Unsecured Uncommitted [Member] | ||
Short-term borrowings [Abstract] | ||
Line of credit facility, available borrowing capacity | $ 128,000 | |
Weighted average interest rates of outstanding borrowings | 8.17% | 3.97% |
Accrued Liabilities (Details)
Accrued Liabilities (Details) - USD ($) $ in Thousands | Dec. 25, 2016 | Dec. 27, 2015 |
Accrued Liabilities [Abstract] | ||
Royalties | $ 158,353 | $ 127,557 |
Advertising | 73,963 | 60,196 |
Payroll and management incentives | 100,248 | 93,578 |
Dividends | 63,501 | 57,406 |
Other | 379,974 | 320,137 |
Total Accrued Liabilities | $ 776,039 | $ 658,874 |
Long-Term Debt (Details)
Long-Term Debt (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 25, 2016 | Dec. 27, 2015 | |
Debt Instrument [Line Items] | ||
Carrying Cost | $ 1,559,895 | $ 1,559,895 |
Long-Term Debt, Current Maturities | 350,000 | 0 |
Deferred Debt Expenses | 11,216 | 12,780 |
Long Term Debt | 1,198,679 | 1,547,115 |
Fair Value | 1,668,784 | 1,638,384 |
Long Term Debt Fair Value Current Maturities | 361,900 | 0 |
Long Term Debt Fair Value Excluding Current Maturities | 1,306,884 | 1,638,384 |
Aggregate Amount of Long-Term Debt Maturing in Next 5 Years | 650,000 | |
Fair value at date of interest rate swap contract settlement | 33,306 | |
Notes 6.35% Due 2040 [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Cost | 500,000 | 500,000 |
Fair Value | $ 584,850 | 556,300 |
Interest rate on long-term debt | 6.35% | |
Long-term debt, principal amount | $ 500 | 500 |
Maturity Date | 2,040 | |
Notes 6.30% Due 2017 [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Cost | $ 350,000 | 350,000 |
Fair Value | $ 361,900 | 374,045 |
Interest rate on long-term debt | 6.30% | |
Long-term debt, principal amount | $ 650,000 | $ 650,000 |
Maturity Date | 2,017 | |
Range of interest rate adjustment dependent on the degree of decrease of the Company's credit rating, minimum | 0.25% | 0.25% |
Range of interest rate adjustment dependent on the degree of decrease of the Company's credit rating, maximum | 2.00% | 2.00% |
Debentures 6.60% Due 2028 [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Cost | $ 109,895 | $ 109,895 |
Fair Value | $ 123,984 | 121,269 |
Interest rate on long-term debt | 6.60% | |
Long-term debt, principal amount | $ 109,895 | 109,895 |
Maturity Date | 2,028 | |
Notes 3.15% Due 2021 Member [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Cost | $ 300,000 | 300,000 |
Fair Value | $ 300,450 | 300,060 |
Interest rate on long-term debt | 3.15% | |
Long-term debt, principal amount | $ 300,000 | 300,000 |
Maturity Date | 2,021 | |
Fair value at date of interest rate swap contract settlement | $ 6,373 | |
Notes 5.10% Due 2044 [Member] | ||
Debt Instrument [Line Items] | ||
Carrying Cost | 300,000 | 300,000 |
Fair Value | $ 297,600 | 286,710 |
Interest rate on long-term debt | 5.10% | |
Long-term debt, principal amount | $ 300,000 | $ 300,000 |
Maturity Date | 2,044 | |
Fair value at date of interest rate swap contract settlement | $ 26,933 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | Mar. 28, 2014 | |
Current [Abstract] | ||||
United States | $ 78,958 | $ 101,591 | $ 70,390 | |
State and local | 3,208 | 3,352 | 3,134 | |
International | 77,834 | 71,054 | 62,909 | |
Current income tax expense | 160,000 | 175,997 | 136,433 | |
Deferred [Abstract] | ||||
United States | 11,989 | (13,771) | (15,448) | |
State and local | 411 | (472) | (530) | |
International | (13,062) | (4,711) | 6,223 | |
Deferred income tax benefit | (662) | (18,954) | (9,755) | |
Total income tax expense | 159,338 | 157,043 | 126,678 | |
Certain income tax (benefits) expenses, not reflected in income taxes in the consolidated statements of operations | (35,722) | (5,434) | (38,223) | |
Deferred tax portion of the total (benefit) expense, not reflected in the consolidated statements of operations | $ (15,521) | $ 8,180 | $ (27,236) | |
Effective income tax rate reconciliation [Abstract] | ||||
Statutory income tax rate | 35.00% | 35.00% | 35.00% | |
State and local income taxes, net | 30.00% | 30.00% | 30.00% | |
Tax on international earnings | (1580.00%) | (1560.00%) | (640.00%) | |
Change in unrecognized tax benefits | 170.00% | 430.00% | (570.00%) | |
Other, net | 180.00% | 200.00% | 30.00% | |
Effective income tax rate, continuing operations | 23.00% | 26.00% | 23.50% | |
Components of earnings before income taxes, determined by tax jurisdiction [Abstract] | ||||
United States | $ 146,013 | $ 155,120 | $ 190,769 | |
International | 546,476 | 448,795 | 349,219 | |
Earnings before income taxes | 692,489 | 603,915 | 539,988 | |
Deferred tax assets [Abstract] | ||||
Accounts receivable | 32,277 | 23,568 | ||
Inventories | 17,913 | 15,168 | ||
Loss and credit carryforwards | 29,752 | 28,893 | ||
Operating expenses | 48,024 | 43,029 | ||
Pension | 35,255 | 48,560 | ||
Other compensation | 66,220 | 62,882 | ||
Postretirement benefits | 12,525 | 9,253 | ||
Interest rate hedge | 10,286 | 10,937 | ||
Tax sharing agreement | 17,339 | 18,379 | ||
Other | 25,513 | 29,768 | ||
Gross deferred tax assets | 295,104 | 290,437 | ||
Valuation allowance | (24,065) | (23,593) | ||
Net deferred tax assets | 271,039 | 266,844 | ||
Deferred tax liabilities [Abstract] | ||||
Depreciation and amortization of long-lived assets | 49,484 | 53,755 | ||
Equity method investment | 7,056 | 8,205 | ||
Other | 7,634 | 14,068 | ||
Deferred tax liabilities | 64,174 | 76,028 | ||
Net deferred income taxes | 206,865 | 190,816 | ||
Increase in the valuation allowance for certain deferred tax assets | 472 | |||
Deferred income taxes included in other assets | 212,317 | 199,563 | ||
Deferred income taxes included in other liabilities | (5,452) | (8,747) | ||
Reconciliation of unrecognized tax benefits [Roll Forward] | ||||
Balance at beginning of year | 63,549 | 35,416 | 55,459 | |
Gross increases in prior period tax positions | 2,727 | 491 | 34,225 | |
Gross decreases in prior period tax positions | (3,103) | (1,773) | (1,510) | |
Gross increases in current period tax positions | 34,155 | 32,547 | 8,470 | |
Decreases related to settlements with tax authorities | (11,662) | (355) | (58,652) | |
Decreases from the expiration of statute of limitations | (5,278) | (2,777) | (2,576) | |
Balance at end of year | 80,388 | 63,549 | 35,416 | |
Unrecognized tax benefits that would impact effective tax rate | 70,000 | |||
Recognized potential interest and penalties | 2,135 | 1,422 | 3,134 | |
Accrued potential interest and penalties | 3,966 | $ 4,778 | 4,042 | |
Income Tax Examination [Line Items] | ||||
Undistributed Earnings of Foreign Subsidiaries | 2,582,000 | |||
Internal Revenue Service (IRS) [Member] | ||||
Income Tax Examination [Line Items] | ||||
Recognition Of Income Tax Benefit Income Tax Examination | 12,159 | |||
Income Tax Examination, Refund Adjustment from Settlement with Taxing Authority | $ 13,480 | |||
Mexico [Member] | ||||
Income Tax Examination [Line Items] | ||||
Cash payment to Mexican Tax Authority for examination dispute resolution | 65,000 | |||
Income Tax Examination, Refund Adjustment from Settlement with Taxing Authority | $ 4,533 | |||
Other Noncurrent Assets [Member] | Internal Revenue Service (IRS) [Member] | ||||
Income Tax Examination [Line Items] | ||||
Income Tax Examination, Increase (Decrease) in Position from Prior Year | $ 641,000 |
Capital Stock (Details)
Capital Stock (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended |
Dec. 25, 2016USD ($)$ / sharesshares | |
Capital Stock [Abstract] | |
Amount of common stock Board of Directors authorized to be repurchased after previous authorizations, maximum (in thousands of dollars) | $ 500,000 |
Number of shares repurchased (in shares) | shares | 1,894 |
Average price per share for the shares repurchased (in dollars per share) | $ / shares | $ 79.86 |
Purchases of common stock | $ (151,331) |
Amount remaining under the authorization | $ 327,990 |
Fair Value of Financial Instr57
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Fair Value of Financial Instruments [Abstract] | |||
Fair value of available for sale investments, fair value option | $ 23,571 | $ 22,539 | |
Gain on available for sale investments, fair value option | $ 1,010 | (682) | $ 899 |
Redemption period | 45 days | ||
Reconciliation of Level 3 Assets | |||
Balance at beginning of year | $ (28,360) | (25,340) | |
(Loss) gain from change in fair value | (410) | (3,020) | |
Balance at end of year | (28,770) | (28,360) | $ (25,340) |
Fair Value, Measurements, Recurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Available-for-sale securities, assets | 3,736 | 3,476 | |
Derivatives, assets | 87,894 | 107,634 | |
Total assets | 91,630 | 111,110 | |
Derivatives, liabilities | 11,309 | 1,240 | |
Option Agreement | 28,770 | 28,360 | |
Total Liabilities | 40,079 | 29,600 | |
Fair Value, Measurements, Recurring [Member] | 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 | 3,736 | 3,476 | |
Derivatives, assets | 0 | 0 | |
Total assets | 3,736 | 3,476 | |
Derivatives, liabilities | 0 | 0 | |
Option Agreement | 0 | 0 | |
Total Liabilities | 0 | 0 | |
Fair Value, Measurements, Recurring [Member] | 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 | |
Derivatives, assets | 87,894 | 107,634 | |
Total assets | 87,894 | 107,634 | |
Derivatives, liabilities | 11,309 | 1,240 | |
Option Agreement | 0 | 0 | |
Total Liabilities | 11,309 | 1,240 | |
Fair Value, Measurements, Recurring [Member] | 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 | |
Derivatives, assets | 0 | 0 | |
Total assets | 0 | 0 | |
Derivatives, liabilities | 0 | 0 | |
Option Agreement | 28,770 | 28,360 | |
Total Liabilities | $ 28,770 | $ 28,360 |
Stock Options, Other Stock Aw58
Stock Options, Other Stock Awards and Warrants (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |||
Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | Dec. 29, 2013 | |
Stock Options, Other Stock Awards and Warrants [Abstract] | ||||
Number of shares of common stock reserved for issuance under stock incentive plans for employees and non-employee directors (in shares) | 9,279 | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense (income) | $ 61,624 | $ 53,880 | $ 36,152 | |
Minimum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock incentive plans, vesting period | 3 years | |||
Maximum [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock incentive plans, vesting period | 5 years | |||
Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense (income) | $ 19,908 | $ 19,052 | $ 15,643 | |
Number of shares [Abstract] | ||||
Outstanding at beginning of year (in shares) | 955 | 937 | 702 | |
Granted (in shares) | 245 | 254 | 281 | |
Forfeited (in shares) | (41) | (52) | (39) | |
Vested (in shares) | (364) | (184) | (7) | |
Outstanding at end of year (in shares) | 795 | 955 | 937 | 702 |
Weighted average grant-date fair value [Abstract] | ||||
Granted (in dollars per share) | $ 75.23 | $ 62.95 | $ 52.06 | |
Forfeited (in dollars per share) | 59.37 | 51.57 | 44.44 | |
Vested (in dollars per share) | 43.89 | 39.87 | 41.19 | |
Outstanding at end of year (in dollars per share) | 61.65 | $ 51.22 | $ 45.74 | |
Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of tranches | 2 | |||
Number of shares [Abstract] | ||||
Granted (in shares) | 119 | 468 | ||
Total Shares Prescribed by Employment Agreement (in shares) | 587 | |||
Weighted average grant-date fair value [Abstract] | ||||
Outstanding at end of year (in dollars per share) | 35.56 | |||
Weighted average assumptions used in determining the fair value of option grants [Abstract] | ||||
Share Price (in dollars per share) | $ 47.28 | |||
Stock price volatility | 26.12% | |||
Risk-free interest rate | 0.65% | |||
Expected dividend yield | 3.38% | |||
Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member] | Stock Price Hurdle One [Member] | ||||
Weighted average assumptions used in determining the fair value of option grants [Abstract] | ||||
Stock price hurdle (in dollars per share) | $ 45 | |||
Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member] | Stock Price Hurdle Two [Member] | ||||
Weighted average assumptions used in determining the fair value of option grants [Abstract] | ||||
Stock price hurdle (in dollars per share) | 52 | |||
Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member] | Stock Price Hurdle Three [Member] | ||||
Weighted average assumptions used in determining the fair value of option grants [Abstract] | ||||
Stock price hurdle (in dollars per share) | 56 | |||
Restricted Stock Units (RSUs) [Member] | Chief Executive Officer [Member] | Stock Price Hurdle Four [Member] | ||||
Weighted average assumptions used in determining the fair value of option grants [Abstract] | ||||
Stock price hurdle (in dollars per share) | $ 60 | |||
Restricted Stock [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense (income) | $ 19,908 | $ 19,052 | $ 15,643 | |
Total unrecognized compensation cost | $ 29,360 | |||
Weighted average period for recognition of total unrecognized compensation expense | 19 months | |||
Stock Performance Awards [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Additional shares granted (in shares) | 276 | 90 | ||
Compensation expense (income) | $ 34,248 | $ 27,960 | $ 11,315 | |
Total unrecognized compensation cost | $ 23,495 | |||
Weighted average period for recognition of total unrecognized compensation expense | 19 months | |||
Percentage of Target Number of Shares, Range Lower Limit | 0.00% | |||
Percentage of Target Number of Shares, Range Upper Limit | 200.00% | |||
Number of shares [Abstract] | ||||
Outstanding at beginning of year (in shares) | 992 | 655 | 943 | |
Granted (in shares) | 529 | 362 | 322 | |
Forfeited (in shares) | (23) | (25) | (32) | |
Cancelled (in shares) | 0 | 0 | (578) | |
Vested (in shares) | (424) | 0 | 0 | |
Outstanding at end of year (in shares) | 1,074 | 992 | 655 | 943 |
Weighted average grant-date fair value [Abstract] | ||||
Granted (in dollars per share) | $ 74.69 | $ 61.85 | $ 52.11 | |
Forfeited (in dollars per share) | 61.86 | 53.45 | 43.21 | |
Cancelled (in dollars per share) | 0 | 0 | 36.14 | |
Vested (in dollars per share) | 47.21 | 0 | 0 | |
Outstanding at end of year (in dollars per share) | $ 62.19 | $ 53.17 | $ 49.57 | |
Cash-settled Restricted Stock Units [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense (income) | $ 0 | $ 0 | $ (113) | |
Stock Awards Non Employee [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense (income) | $ 1,630 | $ 1,449 | $ 1,834 | |
Number of deferred shares (in shares) | 16 | 16 | 26 | |
Number of shares [Abstract] | ||||
Granted (in shares) | 23 | 20 | 34 | |
Employee Stock Options [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense (income) | $ 5,838 | $ 5,419 | $ 7,473 | |
Total unrecognized compensation cost | $ 6,603 | |||
Weighted average period for recognition of total unrecognized compensation expense | 22 months | |||
Stock options [Roll Forward] | ||||
Outstanding at beginning of year (in shares) | 3,445 | 4,186 | 5,543 | |
Granted (in shares) | 492 | 549 | 684 | |
Exercised (in shares) | 1,143 | 1,280 | 1,951 | |
Expired or forfeited (in shares) | 26 | 10 | 90 | |
Outstanding at end of year (in shares) | 2,768 | 3,445 | 4,186 | 5,543 |
Exercisable at end of year (in shares) | 1,708 | 2,208 | 2,374 | |
Weighted average exercise price [Abstract] | ||||
Granted (in dollars per share) | $ 74.42 | $ 61.77 | $ 52.11 | |
Exercised (in dollars per share) | 41.75 | 37.54 | 31.07 | |
Expired or forfeited (in dollars per share) | 56.43 | 46.38 | 39.85 | |
Outstanding at end of year (in dollars per share) | 53.21 | 46.41 | 41.68 | |
Exercisable at end of year (in dollars per share) | $ 45.5 | 41.36 | 38.9 | |
Outstanding at end of year, weighted average remaining contractual life | 3 years 9 months 4 days | |||
Exercisable at end of year, weighted average exercise price remaining contractual life | 2 years 10 months 2 days | |||
Outstanding at end of year, aggregate intrinsic value | $ 69,619 | |||
Exercisable at end of year, aggregate intrinsic value | $ 56,135 | |||
Weighted average fair value of awards granted (in dollars per share) | $ 13.01 | $ 9.29 | $ 8.4 | |
Weighted average assumptions used in determining the fair value of option grants [Abstract] | ||||
Risk-free interest rate | 1.16% | 1.34% | 1.42% | |
Expected dividend yield | 2.74% | 2.98% | 3.30% | |
Expected volatility | 26.00% | 23.00% | 26.00% | |
Expected option life | 5 years | 5 years | 5 years | |
Intrinsic values of options exercised | $ 47,992 | $ 41,906 | $ 44,890 |
Stock Options, Other Stock Aw59
Stock Options, Other Stock Awards and Warrants, Allocation of Recognized Period Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Allocation of total compensation expense related to stock options, restricted stock units and Stock Performance Awards [Abstract] | |||
Allocated share-based compensation (income) expense | $ 61,624 | $ 53,880 | $ 36,152 |
Income tax benefit | 20,298 | 13,489 | 11,745 |
Allocated share-based compensation expense, net of tax | 41,326 | 40,391 | 24,407 |
Cost of Sales [Member] | |||
Allocation of total compensation expense related to stock options, restricted stock units and Stock Performance Awards [Abstract] | |||
Allocated share-based compensation (income) expense | 200 | 366 | 395 |
Product Development [Member] | |||
Allocation of total compensation expense related to stock options, restricted stock units and Stock Performance Awards [Abstract] | |||
Allocated share-based compensation (income) expense | 3,248 | 3,527 | 3,874 |
Selling, Distribution and Administration [Member] | |||
Allocation of total compensation expense related to stock options, restricted stock units and Stock Performance Awards [Abstract] | |||
Allocated share-based compensation (income) expense | 58,176 | 49,987 | 31,883 |
Restricted Stock Units (RSUs) [Member] | |||
Allocation of total compensation expense related to stock options, restricted stock units and Stock Performance Awards [Abstract] | |||
Allocated share-based compensation (income) expense | 19,908 | 19,052 | 15,643 |
Stock Performance Awards [Member] | |||
Allocation of total compensation expense related to stock options, restricted stock units and Stock Performance Awards [Abstract] | |||
Allocated share-based compensation (income) expense | 34,248 | 27,960 | 11,315 |
Stock Awards Non Employee [Member] | |||
Allocation of total compensation expense related to stock options, restricted stock units and Stock Performance Awards [Abstract] | |||
Allocated share-based compensation (income) expense | 1,630 | 1,449 | 1,834 |
Employee Stock Options [Member] | |||
Allocation of total compensation expense related to stock options, restricted stock units and Stock Performance Awards [Abstract] | |||
Allocated share-based compensation (income) expense | 5,838 | 5,419 | 7,473 |
Cash-settled Restricted Stock Units [Member] | |||
Allocation of total compensation expense related to stock options, restricted stock units and Stock Performance Awards [Abstract] | |||
Allocated share-based compensation (income) expense | $ 0 | $ 0 | $ (113) |
Pension, Postretirement and P60
Pension, Postretirement and Postemployment Benefits (Details) $ in Thousands | 12 Months Ended | ||||
Dec. 25, 2016USD ($) | Dec. 27, 2015USD ($) | Dec. 28, 2014USD ($) | Dec. 25, 2016USD ($) | Dec. 27, 2015USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Pension expense | $ 45,200 | $ 36,000 | $ 34,300 | ||
Pension expense related to defined contribution plans | 33,300 | 26,600 | 28,100 | ||
Defined benefit plan, number of major plans which principally cover non-union employees | 2 | ||||
Assumptions used to determine year-end pension and postretirement benefit obligations [Abstract] | |||||
Defined benefit plan, number of major plans that are funded | 1 | ||||
Pension [Member] | |||||
Assumptions used to determine year-end pension and postretirement benefit obligations [Abstract] | |||||
Weighted average discount rate | 4.22% | 4.58% | |||
Change in Projected Benefit Obligation [Roll Forward] | |||||
Service cost | 2,100 | 1,918 | 1,824 | ||
Interest cost | 16,106 | 15,683 | 16,209 | ||
Reconciliation of Funded Status [Abstract] | |||||
Expected amortization of unrecognized net losses in next fiscal year | 9,082 | ||||
Pension [Member] | International Plans[Member] | |||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||
Pension expense | 1,533 | 2,769 | 3,363 | ||
Reconciliation of Funded Status [Abstract] | |||||
Expected amortization of unrecognized net losses in next fiscal year | 1,281 | ||||
Expected amortization of unrecognized prior service cost in next fiscal year | (36) | ||||
Pension [Member] | United States [Member] | |||||
Change in Projected Benefit Obligation [Roll Forward] | |||||
Projected benefit obligation - beginning | 361,060 | 383,068 | |||
Service cost | 2,100 | 1,918 | |||
Interest cost | 16,106 | 15,683 | |||
Actuarial (gain) loss | 17,353 | (17,968) | |||
Curtailment | 0 | 660 | |||
Benefits paid | 22,508 | 20,202 | |||
Expenses paid | 1,287 | 2,099 | |||
Projected benefit obligation - ending | 372,824 | 361,060 | 383,068 | ||
Accumulated benefit obligation - ending | $ 372,824 | $ 361,060 | |||
Change in Plan Assets [Roll Forward] | |||||
Fair value of plan assets - beginning | 259,329 | 272,010 | |||
Actual return on plan assets | 8,961 | (3,414) | |||
Employer contribution | 64,885 | 13,034 | |||
Benefits paid | (22,508) | (20,202) | |||
Expenses paid | (1,287) | (2,099) | |||
Fair value of plan assets - ending | 309,380 | 259,329 | 272,010 | ||
Reconciliation of Funded Status [Abstract] | |||||
Projected benefit obligation | (372,824) | (383,068) | (383,068) | (372,824) | (361,060) |
Fair value of plan assets | $ 259,329 | $ 259,329 | 272,010 | 309,380 | 259,329 |
Funded status | (63,444) | (101,731) | |||
Unrecognized net loss (gain) | 138,529 | 120,482 | |||
Unrecognized prior service cost | 0 | 0 | |||
Net amount recognized | 75,085 | 18,751 | |||
Accrued liabilities | (2,553) | (2,663) | |||
Other liabilities | (60,891) | (99,068) | |||
Accumulated other comprehensive earnings (loss) | 138,529 | 120,482 | |||
Pension [Member] | United States [Member] | Funded [Member] | |||||
Assumptions used to determine year-end pension and postretirement benefit obligations [Abstract] | |||||
Projected benefit obligations in excess of the fair value of the plans' assets | 28,340 | 66,980 | |||
Pension [Member] | United States [Member] | Unfunded [Member] | |||||
Assumptions used to determine year-end pension and postretirement benefit obligations [Abstract] | |||||
Projected benefit obligations in excess of the fair value of the plans' assets | $ 35,104 | $ 34,751 | |||
Postretirement [Member] | |||||
Assumptions used to determine year-end pension and postretirement benefit obligations [Abstract] | |||||
Weighted average discount rate | 4.26% | 4.64% | |||
Health care cost trend rate assumed for next year | 7.00% | 7.00% | |||
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 5.00% | 5.00% | |||
Year that the rate reaches the ultimate trend | 2,021 | 2,021 | |||
Change in Projected Benefit Obligation [Roll Forward] | |||||
Service cost | $ 532 | $ 567 | 543 | ||
Interest cost | 1,175 | 1,154 | 1,337 | ||
Postretirement [Member] | United States [Member] | |||||
Change in Projected Benefit Obligation [Roll Forward] | |||||
Projected benefit obligation - beginning | 26,247 | 28,017 | |||
Service cost | 532 | 567 | |||
Interest cost | 1,175 | 1,154 | |||
Actuarial (gain) loss | 2,380 | (741) | |||
Curtailment | 0 | (746) | |||
Benefits paid | 1,850 | 2,004 | |||
Expenses paid | 0 | 0 | |||
Projected benefit obligation - ending | 28,484 | 26,247 | 28,017 | ||
Accumulated benefit obligation - ending | $ 28,484 | $ 26,247 | |||
Change in Plan Assets [Roll Forward] | |||||
Fair value of plan assets - beginning | 0 | 0 | |||
Actual return on plan assets | 0 | 0 | |||
Employer contribution | 0 | 0 | |||
Benefits paid | 0 | 0 | |||
Expenses paid | 0 | 0 | |||
Fair value of plan assets - ending | 0 | 0 | 0 | ||
Reconciliation of Funded Status [Abstract] | |||||
Projected benefit obligation | (26,247) | (26,247) | (28,017) | (28,484) | (26,247) |
Fair value of plan assets | $ 0 | $ 0 | $ 0 | 0 | 0 |
Funded status | (28,484) | (26,247) | |||
Unrecognized net loss (gain) | 2,420 | 41 | |||
Unrecognized prior service cost | 0 | 0 | |||
Net amount recognized | (26,064) | (26,206) | |||
Accrued liabilities | (1,599) | (1,800) | |||
Other liabilities | (26,885) | (24,447) | |||
Accumulated other comprehensive earnings (loss) | $ 2,420 | $ 41 |
Pension, Postretirement and P61
Pension, Postretirement and Postemployment Benefits, Beginning of Fair Value Measurement (Details) - USD ($) $ in Thousands | Dec. 25, 2016 | Dec. 27, 2015 |
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | $ 309,300 | $ 259,300 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 58,300 | 51,900 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Equity - Large Cap [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 29,100 | 27,600 |
Equity - Large Cap [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 29,100 | 27,600 |
Equity - Large Cap [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Equity - Large Cap [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Equity - Small Cap [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 29,200 | 24,300 |
Equity - Small Cap [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 29,200 | 24,300 |
Equity - Small Cap [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Equity - Small Cap [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Equity - International [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 40,100 | 37,500 |
Equity - International [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Equity - International [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Equity - International [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Equity - Other [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 1,300 | 2,500 |
Equity - Other [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Equity - Other [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Equity - Other [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Fixed Income Funds [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 119,500 | 122,600 |
Fixed Income Funds [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Fixed Income Funds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Fixed Income Funds [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Total Return Fund [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 29,000 | 27,700 |
Total Return Fund [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Total Return Fund [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Total Return Fund [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Cash Equivalents [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 61,100 | 17,100 |
Cash Equivalents [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Cash Equivalents [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | 0 | 0 |
Cash Equivalents [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair values of plan assets by asset class and fair value hierarchy level [Abstract] | ||
Fair Value of Plan Asset | $ 0 | $ 0 |
Pension, Postretirement and P62
Pension, Postretirement and Postemployment Benefits, End of Fair Value Measurement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
International Plans [Member] | |||
Expected benefit payments under defined benefit pension plans and postretirement benefit plan for next five years [Abstract] | |||
2,017 | $ 1,689 | ||
2,018 | 1,910 | ||
2,019 | 2,051 | ||
2,020 | 2,219 | ||
2,021 | 2,453 | ||
2022-2026 | 15,963 | ||
Projected benefit obligation | 118,492 | $ 112,799 | |
Fair value of plan assets | 85,678 | $ 85,752 | |
Expected amortization of unrecognized transition obligation in next fiscal year | $ 2 | ||
Pension [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Shared long-term total return goal on plan assets | 6.75% | 7.00% | 7.00% |
Components of net periodic cost [Abstract] | |||
Service cost | $ 2,100 | $ 1,918 | $ 1,824 |
Interest cost | 16,106 | 15,683 | 16,209 |
Expected return on assets | (17,013) | (18,538) | (18,631) |
Amortization of prior service cost | 0 | 65 | 98 |
Amortization of actuarial loss | 7,361 | 7,468 | 3,351 |
Curtailment/settlement losses | 0 | 781 | 0 |
Net periodic benefit cost | $ 8,554 | $ 7,377 | $ 2,851 |
Assumptions used to determine net periodic benefit cost of pension plan and postretirement plan [Abstract] | |||
Weighted average discount rate | 4.58% | 4.22% | 5.02% |
Long-term rate of return on plan assets | 6.75% | 7.00% | 7.00% |
Expected benefit payments under defined benefit pension plans and postretirement benefit plan for next five years [Abstract] | |||
2,017 | $ 20,034 | ||
2,018 | 20,108 | ||
2,019 | 20,520 | ||
2,020 | 20,995 | ||
2,021 | 21,694 | ||
2022-2026 | 116,258 | ||
Postretirement [Member] | |||
Components of net periodic cost [Abstract] | |||
Service cost | 532 | $ 567 | $ 543 |
Interest cost | 1,175 | 1,154 | 1,337 |
Amortization of actuarial loss | 0 | (304) | (457) |
Curtailment/settlement losses | 0 | (3,842) | 0 |
Net periodic benefit cost | $ 1,707 | $ (2,425) | $ 1,423 |
Assumptions used to determine net periodic benefit cost of pension plan and postretirement plan [Abstract] | |||
Weighted average discount rate | 4.64% | 4.49% | 5.11% |
Health care cost trend rate assumed for next year | 7.00% | 6.50% | 7.00% |
Rate to which the cost trend rate is assumed to decline (ultimate trend rate) | 5.00% | 5.00% | 5.00% |
Year that the rate reaches the ultimate trend rate | 2,021 | 2,020 | 2,020 |
Effect of one percentage point increase in health care cost trend rate on accumulated postretirement benefit obligation and aggregate of benefits earned and interest cost | 1.00% | ||
Expected benefit payments under defined benefit pension plans and postretirement benefit plan for next five years [Abstract] | |||
2,017 | $ 1,633 | ||
2,018 | 1,593 | ||
2,019 | 1,541 | ||
2,020 | 1,497 | ||
2,021 | 1,452 | ||
2022-2026 | $ 6,829 |
Leases (Details)
Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Leases [Abstract] | |||
Rent expense, net of sublease income | $ 52,585 | $ 45,592 | $ 47,026 |
Future minimum rentals, net of minimum sublease income for five years and thereafter [Abstract] | |||
2,017 | 37,061 | ||
2,018 | 32,403 | ||
2,019 | 28,535 | ||
2,020 | 17,981 | ||
2,021 | 11,293 | ||
Thereafter | $ 27,662 |
Derivative Financial Instrume64
Derivative Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 25, 2016 | Dec. 27, 2015 | |
Fair Value Hedging [Member] | Not Designated as Hedging Instrument [Member] | Intercompany Loans | ||
Derivative [Line Items] | ||
Hedge description of hedged item | intercompany loans | |
Total notional amount | $ 268,308 | $ 341,389 |
Underlying risk | foreign currency | |
Fair value of hedged item | $ 4,657 | (1,044) |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | ||
Derivative [Line Items] | ||
Total notional amount | 1,434,758 | 1,532,198 |
Fair value of hedged item | $ 71,928 | 107,438 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Inventory Purchases | ||
Derivative [Line Items] | ||
Hedge description of hedged item | Inventory purchases | |
Total notional amount | $ 945,728 | 1,380,488 |
Underlying risk | foreign currency | |
Fair value of hedged item | $ 60,520 | 108,521 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Sales | ||
Derivative [Line Items] | ||
Hedge description of hedged item | Sales | |
Total notional amount | $ 290,181 | 97,350 |
Underlying risk | foreign currency | |
Fair value of hedged item | $ 9,775 | 803 |
Cash Flow Hedging [Member] | Designated as Hedging Instrument [Member] | Other | ||
Derivative [Line Items] | ||
Hedge description of hedged item | Royalties and Other | |
Total notional amount | $ 198,849 | 54,360 |
Underlying risk | foreign currency | |
Fair value of hedged item | $ 1,633 | $ (1,886) |
Derivative Financial Instrume65
Derivative Financial Instruments, Fair Values Derivatives, Balance Sheet Location, by Derivative Contract Type (Details) - USD ($) $ in Thousands | Dec. 25, 2016 | Dec. 27, 2015 |
Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized gains | $ 34,265 | $ 78,910 |
Unrealized losses | (2,075) | (5,932) |
Net unrealized gain (loss) | 32,190 | 72,978 |
Designated as Hedging Instrument [Member] | Other Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized gains | 51,839 | 35,366 |
Unrealized losses | (792) | (710) |
Net unrealized gain (loss) | 51,047 | 34,656 |
Designated as Hedging Instrument [Member] | Other Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized gains | 0 | 241 |
Unrealized losses | 0 | (437) |
Net unrealized gain (loss) | 0 | (196) |
Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized gains | 8,481 | 0 |
Unrealized losses | (19,790) | 0 |
Net unrealized gain (loss) | (11,309) | 0 |
Not Designated as Hedging Instrument [Member] | Accrued Liabilities [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized gains | 0 | 416 |
Unrealized losses | 0 | (1,460) |
Net unrealized gain (loss) | 0 | (1,044) |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Net unrealized gain (loss) | 4,657 | (1,044) |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Unrealized gains | 5,854 | 0 |
Unrealized losses | (1,197) | 0 |
Net unrealized gain (loss) | $ 4,657 | $ 0 |
Derivative Financial Instrume66
Derivative Financial Instruments, Gain (Loss) by Hedging Relationship, by Income Statement Location (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effective portion, amount of net gains (losses) reclassified from other comprehensive earnings into earnings | $ (1,148) | $ (1,148) | |
Ineffective portion, amount of net gains (losses) reclassified from other comprehensive earnings into earnings | 400 | 1,169 | $ 62 |
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of net gains (losses) reclassified from other comprehensive earnings into earnings | 59,477 | 56,593 | (4,796) |
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Cost of Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effective portion, amount of net gains (losses) reclassified from other comprehensive earnings into earnings | 57,786 | 66,378 | 973 |
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Royalties [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effective portion, amount of net gains (losses) reclassified from other comprehensive earnings into earnings | (5,776) | (566) | (2,028) |
Foreign Exchange Forward [Member] | Cash Flow Hedging [Member] | Sales [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Effective portion, amount of net gains (losses) reclassified from other comprehensive earnings into earnings | 7,467 | (9,219) | (3,741) |
Foreign Exchange Forward [Member] | Fair Value Hedging [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Derivative Instruments, Net Loss (Gain) Recognized in Income, Net | $ 32,524 | $ 48,489 | $ (32,106) |
Sale of Manufacturing Operati67
Sale of Manufacturing Operations (Details) $ in Thousands | 12 Months Ended |
Dec. 25, 2016USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Including Discontinued Operation, Description and Timing of Disposal | On August 30, 2015, the Company completed the sale of its manufacturing operations to Cartamundi NV (“Cartamundi”) |
Disposal Group, Including Discontinued Operation, Consideration | $ 54,400 |
(Payments for) Proceeds from Productive Assets | $ 18,600 |
Disposal Group, Including Discontinued Operation, Segment that Includes Disposal Group | Global Operations |
Nonoperating Income (Expense) [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 6,573 |
Selling, General and Administrative Expenses [Member] | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disposal Group, Not Discontinued Operation, Gain (Loss) on Disposal | $ 3,061 |
Acquisition (Details)
Acquisition (Details) - USD ($) $ in Thousands | 7 Months Ended | |||
Jul. 13, 2016 | Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Business Acquisition [Line Items] | ||||
Goodwill | $ 570,555 | $ 592,695 | $ 593,438 | |
Boulder Media [Member] | ||||
Business Acquisition [Line Items] | ||||
Date Of Acquisition | Jul. 13, 2016 | |||
Business Acquisition, Name Of Acquired Entity | Boulder Media Limited | |||
Payments To Acquire Businesses, Gross | $ 13,177 | |||
Goodwill | $ 11,821 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 25, 2016 | Dec. 27, 2015 | |
Letters of Credit and Other Related Instruments [Abstract] | ||
Unused open letters of credit and related instruments | $ 42,100 | $ 24,444 |
Other Commitments [Line Items] | ||
Additional royalty guarantees Company may be subject to contingent upon the quantity and types of theatrical movie releases | $ 140,000 | |
Period Company is subject to the additional royalty guarantees, maximum | five years | |
Amount of outstanding purchase commitments | $ 689,870 | |
Royalties [Member] | ||
Other Commitments [Line Items] | ||
Prepaid Royalties | 102,807 | |
2017 Commitments | 66,574 | |
2018 Commitments | 60,007 | |
2019 Commitments | 49,366 | |
2020 Commitments | 9,866 | |
2021 Commitments | 9,866 | |
2022+ Commitments | 19,935 | |
Royalties [Member] | Prepaid Expenses and Other Current Assets [Member] | ||
Other Commitments [Line Items] | ||
Prepaid Royalties | 34,096 | |
Royalties [Member] | Other Assets [Member] | ||
Other Commitments [Line Items] | ||
Prepaid Royalties | 68,711 | |
Cartamundi Manufacturing Agreement [Member] | ||
Other Commitments [Line Items] | ||
2017 Commitments | 111,565 | |
2018 Commitments | 105,520 | |
2019 Commitments | 99,475 | |
2020 Commitments | 78,768 | |
Tax Sharing Agreement [Member] | ||
Other Commitments [Line Items] | ||
Future payments Company is obligated to pay joint venture partner under a tax sharing agreement | 78,310 | |
Range of tax sharing payments each year, minimum | 6,700 | |
Range of tax sharing payments each year, maximum | $ 8,600 | |
Range of years for the tax sharing payments, first year | 2,017 | |
Range of years for the tax sharing payments, last year | 2,021 | |
Aggregate payment for all years occurring thereafter | $ 40,597 |
Segment Reporting (Details)
Segment Reporting (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||
Dec. 25, 2016 | Sep. 25, 2016 | Jun. 26, 2016 | Mar. 27, 2016 | Dec. 27, 2015 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | $ 1,629,940 | $ 1,679,757 | $ 878,945 | $ 831,180 | $ 1,465,354 | $ 1,470,997 | $ 797,658 | $ 713,500 | $ 5,019,822 | $ 4,447,509 | $ 4,277,207 | ||
Operating Profit (Loss) | 255,157 | $ 362,101 | $ 84,874 | $ 85,916 | 258,701 | $ 303,527 | $ 75,500 | 54,205 | 788,048 | 691,933 | 635,375 | ||
Depreciation and Amortization | 154,470 | 155,327 | 157,966 | ||||||||||
Capital Additions | 154,900 | 142,022 | 113,388 | ||||||||||
Total Assets | 5,091,366 | 4,720,717 | 5,091,366 | 4,720,717 | 4,518,100 | ||||||||
US and Canada [Member] | Operating Segments [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 2,559,907 | 2,225,518 | 2,022,443 | ||||||||||
Affiliate Revenue | 7,091 | 5,339 | 5,957 | ||||||||||
Operating Profit (Loss) | 430,707 | 522,287 | 430,707 | 334,702 | |||||||||
Depreciation and Amortization | 14,946 | 12,764 | 14,946 | 20,689 | |||||||||
Capital Additions | 3,508 | 8,107 | 3,508 | 1,131 | |||||||||
Total Assets | 2,559,792 | 2,654,270 | 2,559,792 | 2,654,270 | 3,663,497 | ||||||||
International [Member] | Operating Segments [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 2,194,651 | 1,971,875 | 2,022,997 | ||||||||||
Affiliate Revenue | 1,908 | 15 | 170 | ||||||||||
Operating Profit (Loss) | 76,868 | 294,497 | 255,365 | 270,505 | |||||||||
Depreciation and Amortization | 16,251 | 20,768 | 20,434 | 23,086 | |||||||||
Capital Additions | 387 | 7,258 | 7,029 | 3,063 | |||||||||
Total Assets | 2,368,761 | 2,345,847 | 2,368,761 | 2,345,847 | 2,422,046 | ||||||||
Entertainment and Licensing [Member] | Operating Segments [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 265,205 | 244,685 | 219,465 | ||||||||||
Affiliate Revenue | 23,220 | 23,144 | 22,401 | ||||||||||
Operating Profit (Loss) | (83,029) | 49,876 | 76,868 | 60,550 | |||||||||
Depreciation and Amortization | 32,902 | 9,869 | 16,251 | 21,827 | |||||||||
Capital Additions | $ 47,794 | 13,072 | 387 | 807 | |||||||||
Total Assets | 692,898 | 567,753 | 692,898 | 567,753 | 783,878 | ||||||||
Global Operations [Member] | Operating Segments [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 59 | 5,431 | [1] | 12,302 | |||||||||
Affiliate Revenue | 1,617,370 | 1,583,665 | [1] | 1,564,654 | |||||||||
Operating Profit (Loss) | 19,440 | 12,022 | [1] | 15,767 | |||||||||
Depreciation and Amortization | 78,249 | 70,794 | [1] | 69,442 | |||||||||
Capital Additions | 89,051 | 83,304 | [1] | 71,763 | |||||||||
Total Assets | [1] | 2,326,566 | 2,410,142 | 2,326,566 | 2,410,142 | 2,433,888 | |||||||
Corporate Elimination [Member] | Operating Segments [Member] | |||||||||||||
Segment Reporting Information [Line Items] | |||||||||||||
Net revenues | 0 | 0 | [2] | 0 | |||||||||
Affiliate Revenue | (1,649,589) | (1,612,163) | [2] | (1,593,182) | |||||||||
Operating Profit (Loss) | (98,052) | (83,029) | [2] | (46,149) | |||||||||
Depreciation and Amortization | 32,820 | 32,902 | [2] | 22,922 | |||||||||
Capital Additions | 37,412 | 47,794 | [2] | 36,624 | |||||||||
Total Assets | [2] | $ (2,856,651) | $ (3,257,295) | $ (2,856,651) | $ (3,257,295) | $ (4,785,209) | |||||||
[1] | The Global Operations segment derives substantially all of its revenues, and thus its operating results, from intersegment activities. | ||||||||||||
[2] | 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. Furthermore, Corporate and eliminations includes elimination of inter-company income statement transactions. One such example includes licensing and service arrangements with affiliates. Payments received in advance from affiliates are recognized as revenue and eliminated in consolidation as earned and payment becomes assured over the life of the contract. During 2016 and 2015, affiliate licens ing and service fees of $283,078 a nd $265,595, respectively, that were received in 2015 and 2014, respectively, were recognized as revenue and eliminated in consolidation. Corporate and eliminations also includes the elimination of inter-company balance sheet amounts. |
Segment Reporting, Revenues fro
Segment Reporting, Revenues from External Customers and Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 25, 2016 | Sep. 25, 2016 | Jun. 26, 2016 | Mar. 27, 2016 | Dec. 27, 2015 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | $ 1,629,940 | $ 1,679,757 | $ 878,945 | $ 831,180 | $ 1,465,354 | $ 1,470,997 | $ 797,658 | $ 713,500 | $ 5,019,822 | $ 4,447,509 | $ 4,277,207 |
Long-lived assets by geographical location | 1,083,902 | 1,111,029 | 1,083,902 | 1,111,029 | 1,155,455 | ||||||
United States [Member] | Operating Segments [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | 2,575,696 | 2,278,613 | 2,040,476 | ||||||||
Long-lived assets by geographical location | 933,848 | 932,790 | 933,848 | 932,790 | 977,035 | ||||||
International Markets [Member] | Operating Segments [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net revenues | 2,444,126 | 2,168,896 | 2,236,731 | ||||||||
Long-lived assets by geographical location | $ 150,054 | $ 178,239 | $ 150,054 | $ 178,239 | $ 178,420 |
Segment Reporting, Other Inform
Segment Reporting, Other Information (Details) | 12 Months Ended | ||
Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Wal-Mart Stores, Inc. [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of consolidated net revenues accounted for | 18.00% | 16.00% | 16.00% |
Target Corporation [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of consolidated net revenues accounted for | 9.00% | 9.00% | 8.00% |
Toys R Us, Inc. [Member] | |||
Revenue, Major Customer [Line Items] | |||
Percentage of consolidated net revenues accounted for | 9.00% | 9.00% | 9.00% |
Segment Reporting, Internationa
Segment Reporting, International Segment Net Revenues (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 2,194,651 | $ 1,971,875 | $ 2,022,997 |
Europe [Member] | Reportable Geographical Components [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 1,404,478 | 1,236,846 | 1,258,078 |
Asia Pacific [Member] | Reportable Geographical Components [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | 326,535 | 308,920 | 301,407 |
Latin America [Member] | Reportable Geographical Components [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenues | $ 463,638 | $ 426,109 | $ 463,512 |
Segment Reporting, Revenue by P
Segment Reporting, Revenue by Products (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 25, 2016 | Sep. 25, 2016 | Jun. 26, 2016 | Mar. 27, 2016 | Dec. 27, 2015 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | $ 1,629,940 | $ 1,679,757 | $ 878,945 | $ 831,180 | $ 1,465,354 | $ 1,470,997 | $ 797,658 | $ 713,500 | $ 5,019,822 | $ 4,447,509 | $ 4,277,207 |
Boys [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 1,849,645 | 1,775,917 | 1,483,952 | ||||||||
Games [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 1,387,077 | 1,276,532 | 1,259,782 | ||||||||
Girls [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 1,193,877 | 798,240 | 1,022,633 | ||||||||
Preschool [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | $ 589,223 | $ 596,820 | $ 510,840 |
Segment Reporting, Revenue by B
Segment Reporting, Revenue by Brand Portfolio (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 25, 2016 | Sep. 25, 2016 | Jun. 26, 2016 | Mar. 27, 2016 | Dec. 27, 2015 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | $ 1,629,940 | $ 1,679,757 | $ 878,945 | $ 831,180 | $ 1,465,354 | $ 1,470,997 | $ 797,658 | $ 713,500 | $ 5,019,822 | $ 4,447,509 | $ 4,277,207 |
Franchise Brands [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 2,327,668 | 2,285,414 | 2,345,128 | ||||||||
Partner Brands [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 1,412,770 | 1,101,305 | 654,057 | ||||||||
Hasbro Gaming [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | 813,433 | 662,319 | 643,615 | ||||||||
Emerging Brands [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net revenues | $ 465,951 | $ 398,471 | $ 634,407 |
Quarterly Financial Data (Una76
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 25, 2016 | Sep. 25, 2016 | Jun. 26, 2016 | Mar. 27, 2016 | Dec. 27, 2015 | Sep. 27, 2015 | Jun. 28, 2015 | Mar. 29, 2015 | Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Quarterly Financial Data (Unaudited) [Abstract] | |||||||||||
Net revenues, external | $ 1,629,940 | $ 1,679,757 | $ 878,945 | $ 831,180 | $ 1,465,354 | $ 1,470,997 | $ 797,658 | $ 713,500 | $ 5,019,822 | $ 4,447,509 | $ 4,277,207 |
Operating profit | 255,157 | 362,101 | 84,874 | 85,916 | 258,701 | 303,527 | 75,500 | 54,205 | 788,048 | 691,933 | 635,375 |
Earnings (loss) before income taxes | 219,932 | 346,324 | 67,020 | 59,213 | 231,337 | 284,617 | 53,646 | 34,315 | 692,489 | 603,915 | |
Net earnings | 180,599 | 256,162 | 49,419 | 46,971 | 174,394 | 206,375 | 40,282 | 25,821 | 533,151 | 446,872 | 413,310 |
Net earnings attributable to Hasbro, Inc. | $ 192,725 | $ 257,798 | $ 52,106 | $ 48,751 | $ 175,763 | $ 207,599 | $ 41,809 | $ 26,667 | $ 551,380 | $ 451,838 | $ 415,930 |
Net earnings (loss) [Abstract] | |||||||||||
Basic (in dollars per share) | $ 1.54 | $ 2.05 | $ 0.42 | $ 0.39 | $ 1.41 | $ 1.66 | $ 0.33 | $ 0.21 | $ 4.4 | $ 3.61 | $ 3.24 |
Diluted (in dollars per share) | 1.52 | 2.03 | 0.41 | 0.38 | 1.39 | 1.64 | 0.33 | 0.21 | 4.34 | 3.57 | 3.2 |
Market price [Abstract] | |||||||||||
High (in dollars per share) | 86.25 | 87.94 | 87.63 | 78.94 | 79.93 | 84.42 | 78.91 | 63.47 | 87.94 | 84.42 | |
Low (in dollars per share) | 77.27 | 76.16 | 77.8 | 66.96 | 64.91 | 60.38 | 61.13 | 51.42 | 66.96 | 51.42 | |
Cash dividends declared (in dollars per share) | $ 0.51 | $ 0.51 | $ 0.51 | $ 0.51 | $ 0.46 | $ 0.46 | $ 0.46 | $ 0.46 | $ 2.04 | $ 1.84 | $ 1.72 |
Schedule II Valuation and Qua77
Schedule II Valuation and Qualifying Accounts (Details) - Allowance for Doubtful Accounts [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 25, 2016 | Dec. 27, 2015 | Dec. 28, 2014 | |
Valuation and Qualifying Accounts [Roll Forward] | |||
Balance at Beginning of Year | $ 14,900 | $ 15,900 | $ 19,000 |
Expense (Benefit) | 19,500 | 2,400 | 800 |
Other Additions | 0 | 0 | 0 |
Write-Offs and Other | (17,600) | (3,400) | (3,900) |
Balance at End of Year | $ 16,800 | $ 14,900 | $ 15,900 |