HASBRO, INC. - Quarter Report: 2017 October (Form 10-Q)
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
_________________
FORM 10-Q
______________
(Mark One)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended October 1, 2017
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Commission File Number 1-6682
_______________
HASBRO, INC.
(Exact name of registrant as specified in its charter)
Rhode Island |
05-0155090 |
(State of Incorporation) |
(I.R.S. Employer Identification No.) |
1027 Newport Avenue, Pawtucket, Rhode Island 02861 |
(Address of Principal Executive Offices, Including Zip Code) |
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(401) 431-8697 |
(Registrant's Telephone Number, Including Area Code) |
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes [x] No [ ]
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes [x] No [ ]
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and “emerging growth company” in Rule 12b-2 of the Exchange Act.
Large accelerated filer [x] |
Accelerated filer [ ] |
Non-accelerated filer (Do not check if a smaller reporting company) [ ] |
Smaller reporting Company [ ] |
Emerging growth Company [ ]
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [ ]
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes [ ] No [x]
The number of shares of Common Stock, par value $.50 per share, outstanding as of October 23, 2017 was 124,555,586.
PART I. FINANCIAL INFORMATION | |||||||||||
Item 1. Financial Statements. |
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HASBRO, INC. AND SUBSIDIARIES |
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Consolidated Balance Sheets |
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(Thousands of Dollars Except Share Data) |
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(Unaudited) |
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October 1, |
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September 25, |
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December 25, |
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2017 |
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2016 |
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2016 |
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ASSETS |
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Current assets |
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Cash and cash equivalents |
$ |
1,244,778 |
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830,372 |
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1,282,285 |
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Accounts receivable, less allowance for doubtful accounts of $33,900 |
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$36,500 and $16,800 |
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1,655,752 |
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1,452,931 |
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1,319,963 |
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Inventories |
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629,120 |
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607,701 |
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387,675 |
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Prepaid expenses and other current assets |
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232,590 |
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255,983 |
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237,684 |
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Total current assets |
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3,762,240 |
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3,146,987 |
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3,227,607 |
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Property, plant and equipment, less accumulated depreciation of $417,000, |
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$358,100 and $383,700 |
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263,862 |
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247,231 |
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267,398 |
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Other assets |
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Goodwill |
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572,762 |
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604,700 |
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570,555 |
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Other intangibles, net, accumulated amortization of $898,300, $867,300 |
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and $876,000 |
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223,695 |
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254,637 |
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245,949 |
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Other |
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722,089 |
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701,592 |
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779,857 |
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Total other assets |
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1,518,546 |
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1,560,929 |
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1,596,361 |
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Total assets |
$ |
5,544,648 |
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4,955,147 |
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5,091,366 |
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LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS |
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AND SHAREHOLDERS' EQUITY |
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Current liabilities |
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Short-term borrowings |
$ |
189,012 |
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178,666 |
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172,582 |
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Current portion of long-term debt |
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- |
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349,611 |
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349,713 |
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Accounts payable |
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525,852 |
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344,874 |
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319,525 |
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Accrued liabilities |
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769,893 |
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742,568 |
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776,039 |
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Total current liabilities |
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1,484,757 |
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1,615,719 |
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1,617,859 |
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Long-term debt |
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1,693,261 |
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1,198,461 |
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1,198,679 |
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Other liabilities |
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410,378 |
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364,378 |
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389,388 |
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Total liabilities |
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3,588,396 |
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3,178,558 |
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3,205,926 |
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Redeemable noncontrolling interests |
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- |
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34,829 |
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22,704 |
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Shareholders' equity |
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Preference stock of $2.50 par value. Authorized 5,000,000 shares; none |
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issued |
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- |
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- |
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- |
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Common stock of $0.50 par value. Authorized 600,000,000 shares; issued |
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209,694,630 at October 1, 2017, September 25, 2016, |
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and December 25, 2016 |
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104,847 |
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104,847 |
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104,847 |
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Additional paid-in capital |
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1,043,981 |
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959,859 |
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985,418 |
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Retained earnings |
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4,336,420 |
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4,019,370 |
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4,148,722 |
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Accumulated other comprehensive loss |
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(234,792) |
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(203,989) |
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(194,570) |
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Treasury stock, at cost; 85,139,302 shares at October 1, 2017; 84,751,773 |
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shares at September 25, 2016; and 85,207,677 shares at December 25, 2016 |
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(3,294,204) |
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(3,138,327) |
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(3,181,681) |
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Total shareholders' equity |
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1,956,252 |
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1,741,760 |
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1,862,736 |
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Total liabilities, redeemable noncontrolling interests and |
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shareholders' equity |
$ |
5,544,648 |
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4,955,147 |
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5,091,366 |
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See accompanying condensed notes to consolidated financial statements. |
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HASBRO, INC. AND SUBSIDIARIES |
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Consolidated Statements of Operations |
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(Thousands of Dollars Except Per Share Data) |
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(Unaudited) |
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Quarter Ended |
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Nine Months Ended |
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October 1, |
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September 25, |
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October 1, |
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September 25, |
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2017 |
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2016 |
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2017 |
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2016 |
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Net revenues |
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$ |
1,791,502 |
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1,679,757 |
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3,613,671 |
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3,389,882 |
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Costs and expenses: |
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Cost of sales |
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730,656 |
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658,986 |
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1,404,971 |
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1,270,902 |
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Royalties |
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139,222 |
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134,294 |
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282,754 |
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273,671 |
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Product development |
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67,386 |
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70,083 |
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192,765 |
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190,918 |
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Advertising |
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168,926 |
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154,132 |
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342,236 |
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320,948 |
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Amortization of intangibles |
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6,492 |
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8,691 |
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22,254 |
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26,073 |
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Program production cost amortization |
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5,394 |
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6,282 |
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16,152 |
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17,501 |
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Selling, distribution and administration |
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312,482 |
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285,188 |
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813,268 |
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756,978 |
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Total costs and expenses |
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1,430,558 |
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1,317,656 |
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3,074,400 |
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2,856,991 |
Operating profit |
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360,944 |
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362,101 |
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539,271 |
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532,891 |
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Non-operating (income) expense: |
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Interest expense |
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25,072 |
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24,305 |
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73,752 |
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72,263 |
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Interest income |
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(5,362) |
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(1,944) |
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(16,042) |
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(6,469) |
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Other income, net |
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(8,607) |
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(6,584) |
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(26,003) |
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(5,460) |
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Total non-operating expense, net |
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11,103 |
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15,777 |
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31,707 |
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60,334 |
Earnings before income taxes |
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349,841 |
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346,324 |
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507,564 |
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472,557 |
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Income tax expense |
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84,258 |
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90,162 |
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105,659 |
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120,005 |
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Net earnings |
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265,583 |
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256,162 |
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401,905 |
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352,552 |
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Net loss attributable to noncontrolling interests |
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- |
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(1,636) |
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- |
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(6,103) |
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Net earnings attributable to Hasbro, Inc. |
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$ |
265,583 |
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257,798 |
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401,905 |
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358,655 |
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Net earnings attributable to Hasbro, Inc. per common share: |
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Basic |
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$ |
2.12 |
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2.05 |
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3.21 |
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2.86 |
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Diluted |
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$ |
2.09 |
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2.03 |
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3.16 |
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2.82 |
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Cash dividends declared per common share |
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$ |
0.57 |
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0.51 |
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1.71 |
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1.53 |
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See accompanying condensed notes to consolidated financial statements. |
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HASBRO, INC. AND SUBSIDIARIES |
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Consolidated Statements of Comprehensive Earnings |
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(Thousands of Dollars) |
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(Unaudited) |
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Quarter Ended |
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Nine Months Ended |
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October 1, |
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September 25, |
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October 1, |
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September 25, |
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2017 |
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2016 |
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2017 |
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2016 |
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Net earnings |
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$ |
265,583 |
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256,162 |
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401,905 |
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352,552 |
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Other comprehensive earnings (loss): |
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Foreign currency translation adjustments |
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13,142 |
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(1,483) |
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41,954 |
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18,482 |
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Net losses on cash flow hedging activities, |
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net of tax |
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(26,532) |
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(12,960) |
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(83,729) |
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(37,004) |
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Unrealized holding (losses) gains on available |
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-for-sale securities, net of tax |
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(784) |
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(390) |
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(555) |
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963 |
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Reclassifications to earnings, net of tax: |
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Net losses (gains) on cash flow hedging activities |
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4,547 |
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(16,028) |
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(2,237) |
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(43,952) |
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Unrecognized pension and postretirement amounts |
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1,448 |
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1,173 |
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4,345 |
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3,523 |
Total other comprehensive loss, net of tax |
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(8,179) |
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(29,688) |
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(40,222) |
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(57,988) |
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Comprehensive earnings |
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257,404 |
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226,474 |
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361,683 |
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294,564 |
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Comprehensive loss attributable to noncontrolling interests |
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- |
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(1,636) |
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- |
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(6,103) |
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Comprehensive earnings attributable to Hasbro, Inc. |
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$ |
257,404 |
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228,110 |
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361,683 |
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300,667 |
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See accompanying condensed notes to consolidated financial statements. |
HASBRO, INC. AND SUBSIDIARIES |
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Consolidated Statements of Cash Flows |
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(Thousands of Dollars) |
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(Unaudited) |
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Nine Months Ended |
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October 1, |
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September 25, |
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2017 |
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2016 |
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Cash flows from operating activities: |
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Net earnings |
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$ |
401,905 |
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352,552 |
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Adjustments to reconcile net earnings to net cash provided by operating activities: |
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Depreciation of plant and equipment |
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107,853 |
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89,327 |
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Amortization of intangibles |
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22,254 |
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26,073 |
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Program production cost amortization |
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16,152 |
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17,501 |
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Deferred income taxes |
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17,797 |
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25,091 |
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Stock-based compensation |
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37,390 |
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39,673 |
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Other non-cash items |
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(16,033) |
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(15,523) |
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Change in operating assets and liabilities net of acquired and disposed balances: |
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Increase in accounts receivable |
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(300,693) |
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(224,172) |
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Increase in inventories |
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(222,546) |
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(214,734) |
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Increase in prepaid expenses and other current assets |
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(4,437) |
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(4,063) |
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Program production costs |
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(25,309) |
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(36,010) |
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Increase in accounts payable and accrued liabilities |
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137,518 |
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171,287 |
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Other |
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29,945 |
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(31,595) |
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Net cash provided by operating activities |
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201,796 |
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|
195,407 |
Cash flows from investing activities: |
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Additions to property, plant and equipment |
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(102,512) |
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(103,639) |
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Investments and acquisitions, net of cash acquired |
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- |
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(12,436) |
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Other |
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5,516 |
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25,576 |
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Net cash utilized by investing activities |
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(96,996) |
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(90,499) |
Cash flows from financing activities: |
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Net proceeds from borrowings with maturity greater than three months |
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493,878 |
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- |
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Repayments of borrowings with maturity greater than three months |
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(350,000) |
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- |
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Net proceeds from other short-term borrowings |
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15,663 |
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14,160 |
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Purchases of common stock |
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(112,241) |
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(104,273) |
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Stock-based compensation transactions |
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29,432 |
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37,515 |
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Dividends paid |
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(206,012) |
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(185,265) |
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Payments related to tax withholding for share-based compensation |
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(31,973) |
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(21,914) |
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Other |
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- |
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762 |
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Net cash utilized by financing activities |
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(161,253) |
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(259,015) |
Effect of exchange rate changes on cash |
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18,946 |
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7,729 |
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Decrease in cash and cash equivalents |
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|
(37,507) |
|
|
(146,378) |
|||
Cash and cash equivalents at beginning of year |
|
|
1,282,285 |
|
|
976,750 |
|||
Cash and cash equivalents at end of period |
|
$ |
1,244,778 |
|
|
830,372 |
|||
|
|
|
|
|
|
|
|
|
|
Supplemental information |
|
|
|
|
|
|
|||
|
Cash paid during the period for: |
|
|
|
|
|
|
||
|
|
Interest |
|
$ |
75,567 |
|
|
74,700 |
|
|
|
Income taxes |
|
$ |
86,441 |
|
|
64,854 |
|
|
|
|
|
|
|
|
|
|
|
See accompanying condensed notes to consolidated financial statements. |
|
|
|
|
|
|
HASBRO, INC. AND SUBSIDIARIES
Condensed Notes to Consolidated Financial Statements
(Thousands of Dollars and Shares Except Per Share Data)
(Unaudited)
In the opinion of management, the accompanying unaudited interim consolidated financial statements contain all normal and recurring adjustments necessary to present fairly the consolidated financial position of Hasbro, Inc. and all majority-owned subsidiaries ("Hasbro" or the "Company") as of October 1, 2017 and September 25, 2016, and the results of its operations and cash flows for the periods then ended in accordance with accounting principles generally accepted in the United States of America ("U.S. GAAP"). The preparation of financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the amounts reported in the financial statements and notes thereto. Actual results could differ from those estimates.
The quarters ended October 1, 2017 and September 25, 2016 were each 13-week periods. The nine-month period ended October 1, 2017 was a 40-week period while the nine-month period ended September 25, 2016 was a 39-week period.
The results of operations for the quarter and nine-month periods ended October 1, 2017 are not necessarily indicative of results to be expected for the full year, nor were those of the comparable 2016 periods representative of those actually experienced for the full year 2016. Certain reclassifications have been made to prior year amounts to conform to the current period presentation.
These condensed consolidated financial statements have been prepared without audit, pursuant to the rules and regulations of the Securities and Exchange Commission. Certain information and disclosures normally included in the consolidated financial statements prepared in accordance with U.S. GAAP have been condensed or omitted pursuant to such rules and regulations. The Company filed audited consolidated financial statements for the fiscal year ended December 25, 2016 in its Annual Report on Form 10-K (“2016 Form 10-K”), which includes all such information and disclosures and, accordingly, should be read in conjunction with the financial information included herein.
Recently Adopted Accounting Standards
The Company's accounting policies are the same as those described in Note 1 to the Company's consolidated financial statements in its 2016 Form 10-K with the exception of the accounting policy related to stock compensation. During the first quarter of 2017, the Company adopted Accounting Standards Update (“ASU”) 2016-09, Improvements to Employee Share-Based Payment Accounting. The ASU includes provisions intended to simplify how share-based payments are accounted for and presented in the financial statements including:
· Prospectively, the requirement to record all of the tax effects related to share-based payments at settlement through the income statement. For the quarter and nine months ended October 1, 2017, excess tax benefits of $5,014 and $20,478, respectively, were recorded to income tax expense.
· A requirement that all tax-related cash flows resulting from share-based payments be reported as operating activities, included with other income tax cash flows on the statement of cash flows. Previously, these amounts were reported as a cash inflow from financing activities. The Company elected to apply this requirement of the standard retrospectively. Accordingly, the cash flow statement for the nine months ended September 25, 2016 has been restated to include $19,712 of cash flows from excess tax benefits, previously included as financing activities, in operating activities within the increase in accounts payable and other accrued liabilities. For the nine months ended October 1, 2017 excess tax benefits of $20,478 were reported as operating activities.
· A requirement that all cash payments made to taxing authorities on the employees’ behalf for withheld shares shall be presented as financing activities in the statements of cash flows. Prior to adoption of ASU 2016-09, these cash flows were included as operating activities. This change was required to be applied on a retrospective basis and as a result, the Company has restated the consolidated statement of cash flows for the nine months ended September 25, 2016. This change resulted in payments of $21,914 for the nine months ended September 25, 2016 being included in financing activities. For the nine months ended October 1, 2017, such payments amounted to $31,973.
· Entities are permitted to make an accounting policy election for the impact of forfeitures on the recognition of expense for share-based payment awards choosing either to estimate forfeitures as previously required or recognize forfeitures as they occur. The Company elected to change its method of accounting for forfeitures from estimating the number of stock-based awards expected to vest, to accounting for forfeitures as they occur which resulted in a one-time charge, net of tax, of $700 to retained earnings recorded during the first quarter of 2017. Based upon the Company’s history of forfeitures, it is not expected that this election will have a material impact on its financial statements going forward however, as any impact will be based on future forfeitures, the actual impact could differ from the Company’s expectation.
Recent Transactions
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”). During the first quarter of 2017, the Company acquired the remaining 30% of Backflip for no additional consideration, making it a wholly-owned subsidiary of the Company.
Net earnings per share data for the quarters and nine-month periods ended October 1, 2017 and September 25, 2016 were computed as follows:
|
2017 |
|
2016 |
||||||||
Quarter |
Basic |
|
Diluted |
|
Basic |
|
Diluted |
||||
Net earnings attributable to Hasbro, Inc. |
$ |
265,583 |
|
|
265,583 |
|
|
257,798 |
|
|
257,798 |
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding |
|
125,170 |
|
|
125,170 |
|
|
125,500 |
|
|
125,500 |
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
|
|
Options and other share-based awards |
|
- |
|
|
1,980 |
|
|
- |
|
|
1,678 |
Equivalent Shares |
|
125,170 |
|
|
127,150 |
|
|
125,500 |
|
|
127,178 |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Hasbro, Inc. per common share |
$ |
2.12 |
|
|
2.09 |
|
|
2.05 |
|
|
2.03 |
|
2017 |
|
2016 |
||||||||
Nine Months |
Basic |
|
Diluted |
|
Basic |
|
Diluted |
||||
Net earnings attributable to Hasbro, Inc. |
$ |
401,905 |
|
|
401,905 |
|
|
358,655 |
|
|
358,655 |
|
|
|
|
|
|
|
|
|
|
|
|
Average shares outstanding |
|
125,204 |
|
|
125,204 |
|
|
125,414 |
|
|
125,414 |
Effect of dilutive securities: |
|
|
|
|
|
|
|
|
|
|
|
Options and other share-based awards |
|
- |
|
|
2,044 |
|
|
- |
|
|
1,642 |
Equivalent Shares |
|
125,204 |
|
|
127,248 |
|
|
125,414 |
|
|
127,056 |
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings attributable to Hasbro, Inc. per common share |
$ |
3.21 |
|
|
3.16 |
|
|
2.86 |
|
|
2.82 |
For the quarters ended October 1, 2017 and September 25, 2016, options and restricted stock units totaling 450 and 492, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been antidilutive. For the nine-month periods ended October 1, 2017 and September 25, 2016, options and restricted stock units totaling 514 and 492, respectively, were excluded from the calculation of diluted earnings per share because to include them would have been antidilutive.
(3) Other Comprehensive Earnings (Loss)
Components of other comprehensive earnings (loss) are presented within the consolidated statements of comprehensive earnings. The following table presents the related tax effects on changes in other comprehensive earnings (loss) for the quarter and nine-month periods ended October 1, 2017 and September 25, 2016.
|
|
Quarter Ended |
|
Nine Months Ended |
||||||||
|
|
October 1, |
|
September 25, |
|
October 1, |
|
September 25, |
||||
|
|
2017 |
|
2016 |
|
2017 |
|
2016 |
||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive earnings (loss), tax effect: |
|
|
|
|
|
|
|
|
|
|
|
|
Tax benefit on cash flow hedging activities |
$ |
1,700 |
|
|
1,420 |
|
|
5,936 |
|
|
9,423 |
|
Tax benefit (expense) on unrealized holding losses and gains |
|
445 |
|
|
221 |
|
|
315 |
|
|
(547) |
|
Reclassifications to earnings, tax effect: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tax (benefit) expense on cash flow hedging activities |
|
(1,875) |
|
|
2,456 |
|
|
(2,884) |
|
|
5,274 |
|
Tax benefit on unrecognized pension and |
|
|
|
|
|
|
|
|
|
|
|
|
postretirement amounts reclassified to the |
|
|
|
|
|
|
|
|
|
|
|
|
consolidated statements of operations |
|
(822) |
|
|
(666) |
|
|
(2,466) |
|
|
(1,999) |
Total tax effect on other comprehensive earnings (loss) |
$ |
(552) |
|
|
3,431 |
|
|
901 |
|
|
12,151 |
Changes in the components of accumulated other comprehensive loss for the nine months ended October 1, 2017 and September 25, 2016 are as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Unrealized |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Holding |
|
|
|
|
Total |
||
|
|
|
|
Gains |
|
Gains on |
|
Foreign |
|
Accumulated |
||||
|
Pension and |
|
(Losses) on |
|
Available- |
|
Currency |
|
Other |
|||||
|
Postretirement |
|
Derivative |
|
for-Sale |
|
Translation |
|
Comprehensive |
|||||
|
Amounts |
|
Instruments |
|
Securities |
|
Adjustments |
|
Loss |
|||||
2017 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 25, 2016 |
$ |
(118,401) |
|
|
51,085 |
|
|
1,424 |
|
|
(128,678) |
|
|
(194,570) |
Current period other comprehensive earnings (loss) |
|
4,345 |
|
|
(85,966) |
|
|
(555) |
|
|
41,954 |
|
|
(40,222) |
Balance at October 1, 2017 |
$ |
(114,056) |
|
|
(34,881) |
|
|
869 |
|
|
(86,724) |
|
|
(234,792) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2016 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at December 27, 2015 |
$ |
(102,931) |
|
|
79,317 |
|
|
1,258 |
|
|
(123,645) |
|
|
(146,001) |
Current period other comprehensive earnings (loss) |
|
3,523 |
|
|
(80,956) |
|
|
963 |
|
|
18,482 |
|
|
(57,988) |
Balance at September 25, 2016 |
$ |
(99,408) |
|
|
(1,639) |
|
|
2,221 |
|
|
(105,163) |
|
|
(203,989) |
At October 1, 2017, the Company had remaining net deferred losses on foreign currency forward contracts, net of tax, of $17,547 in accumulated other comprehensive loss ("AOCE"). These instruments hedge payments related to inventory purchased in the third quarter of 2017 or forecasted to be purchased during the remainder of 2017 and, to a lesser extent, 2018 through 2022, intercompany expenses expected to be paid or received during 2017 and 2018, and cash receipts for sales forecasted to be made in the remainder of 2017 and, to a lesser extent, 2018 through 2019. These amounts will be reclassified into the consolidated statements of operations upon the sale of the related inventory or recognition of the related sales or expenses.
In addition to foreign currency forward contracts, the Company entered into hedging contracts on future interest payments related to the long-term notes due 2021 and 2044. At the date of debt issuance, these contracts were terminated and the fair value on the date of settlement was deferred in AOCE and is being amortized to interest expense over the life of the related notes using the effective interest rate method. At October 1, 2017, deferred losses, net of tax, of $17,332 related to these instruments remained in AOCE. For the quarters ended October 1, 2017 and September 25, 2016, previously deferred losses of $450 were reclassified from AOCE to net earnings. For the nine-month periods ended October 1, 2017 and September 25, 2016, previously deferred losses of $1,384 and $1,349 were reclassified from AOCE to net earnings, respectively.
Of the amount included in AOCE at October 1, 2017, the Company expects net losses of approximately $18,932 to be reclassified to the consolidated statements of operations within the next 12 months. However, the amount ultimately realized in earnings is dependent on the fair value of the hedging instruments on the settlement dates.
The Company's financial instruments include cash and cash equivalents, accounts receivable, short-term borrowings, accounts payable and certain accrued liabilities. At October 1, 2017, September 25, 2016 and December 25, 2016, the carrying cost of these instruments approximated their fair value. The Company's financial instruments at October 1, 2017, September 25, 2016 and December 25, 2016 also include certain assets and liabilities measured at fair value (see Notes 6 and 8) as well as long-term borrowings. The carrying costs, which are equal to the outstanding principal amounts, and fair values of the Company's long-term borrowings as of October 1, 2017, September 25, 2016 and December 25, 2016 are as follows:
|
October 1, 2017 |
|
September 25, 2016 |
|
December 25, 2016 |
||||||||||||
|
Carrying |
|
Fair |
|
Carrying |
|
Fair |
|
Carrying |
|
Fair |
||||||
|
Cost |
|
Value |
|
Cost |
|
Value |
|
Cost |
|
Value |
||||||
6.35% Notes Due 2040 |
$ |
500,000 |
|
|
613,750 |
|
|
500,000 |
|
|
611,200 |
|
|
500,000 |
|
|
584,850 |
3.50% Notes Due 2027 |
|
500,000 |
|
|
496,850 |
|
|
- |
|
|
- |
|
|
- |
|
|
- |
6.30% Notes Due 2017 |
|
- |
|
|
- |
|
|
350,000 |
|
|
366,205 |
|
|
350,000 |
|
|
361,900 |
5.10% Notes Due 2044 |
|
300,000 |
|
|
324,300 |
|
|
300,000 |
|
|
324,450 |
|
|
300,000 |
|
|
297,600 |
3.15% Notes Due 2021 |
|
300,000 |
|
|
306,840 |
|
|
300,000 |
|
|
310,620 |
|
|
300,000 |
|
|
300,450 |
6.60% Debentures Due 2028 |
|
109,895 |
|
|
132,830 |
|
|
109,895 |
|
|
132,786 |
|
|
109,895 |
|
|
123,984 |
Total long-term debt |
$ |
1,709,895 |
|
|
1,874,570 |
|
|
1,559,895 |
|
|
1,745,261 |
|
|
1,559,895 |
|
|
1,668,784 |
Less: Current portion |
|
- |
|
|
- |
|
|
350,000 |
|
|
366,205 |
|
|
350,000 |
|
|
361,900 |
Less: Deferred debt expenses |
|
16,634 |
|
|
- |
|
|
11,434 |
|
|
- |
|
|
11,216 |
|
|
- |
Long-term debt |
$ |
1,693,261 |
|
|
1,874,570 |
|
|
1,198,461 |
|
|
1,379,056 |
|
|
1,198,679 |
|
|
1,306,884 |
In September 2017 the Company issued $500,000 of Notes due in 2027 that bear interest at a fixed rate of 3.50% (the "3.50% Notes"). Net proceeds from the issuance of the 3.50% Notes, after deduction of $6,122 of underwriting discount and debt issuance expenses, totaled $493,878. These costs are being amortized over the life of the 3.50% Notes, or 10 years. The Company may redeem the 3.50% 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, plus 25 basis points. In addition, three months prior to their maturity date, the Company may redeem at its option the 3.50% Notes, in whole at any time or in part from time to time, at a redemption price equal to 100% of the principal amount of the 3.50% Notes to be redeemed.
The proceeds from this debt issuance were used to repay the $350,000 aggregate principal amount of its 6.30% Notes that matured during the third quarter 2017. The Company used the remaining net proceeds for general corporate purposes.
Current portion of long-term debt at September 25, 2016 and December 25, 2016 of $349,611 and $349,713, respectively, as shown on the consolidated balance sheet represents the $350,000 principal of 6.30% notes less $389 and $287, respectively, of deferred debt expenses.
The fair values of the Company's long-term debt are considered Level 3 fair values (see Note 6 for further discussion of the fair value hierarchy) and are measured using the discounted future cash flows method. In addition to the debt terms, the valuation methodology includes an assumption of a discount rate that approximates the current yield on a similar debt security. This assumption is considered an unobservable input in that it reflects the Company's own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that this is the best information available for use in the fair value measurement.
The Company and its subsidiaries file income tax returns in the United States and various state and international jurisdictions. In the normal course of business, the Company is regularly audited by U.S. federal, state and local and international tax authorities in various tax jurisdictions.
The Company is no longer subject to U.S. federal income tax examinations for years before 2012. With few exceptions, the Company is no longer subject to U.S. state or local and non-U.S. income tax examinations by tax authorities in its major jurisdictions for years before 2009. In the third quarter of 2016, the U.S. Internal Revenue Service commenced an examination related to the 2012 and 2013 amended U.S. federal income tax returns. The Company is currently under income tax examination in several U.S. state and local and non-U.S. jurisdictions.
(6) Fair Value of Financial Instruments
The Company measures certain financial instruments at fair value. The fair value hierarchy consists of three levels: Level 1 fair values are based on quoted market prices in active markets for identical assets or liabilities that the entity has the ability to access; Level 2 fair values are those based on quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or other inputs that are observable or can be corroborated by observable data for substantially the full term of the assets or liabilities; and Level 3 fair values are based on inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities.
Accounting standards permit entities to measure many financial instruments and certain other items at fair value and establish presentation and disclosure requirements designed to facilitate comparisons between entities that choose different measurement attributes for similar assets and liabilities. The Company has elected the fair value option for certain available-for-sale investments. At October 1, 2017, September 25, 2016 and December 25, 2016, these investments totaled $24,405, $23,490 and $23,571, respectively, and are included in prepaid expenses and other current assets in the consolidated balance sheets. The Company recorded net gains of $446 and $1,461 on these investments in other income, net for the quarter and nine months ended October 1, 2017, respectively, related to the change in fair value of such instruments. For the quarter and nine-month periods ended September 25, 2016, the Company recorded net gains of $440 and $922, respectively, in other income, net, related to the change in fair value of such instruments.
At October 1, 2017, September 25, 2016 and December 25, 2016, 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: |
||||||||||
|
|
|
|
Quoted |
|
|
|
|
|
|
|
|
|
|
|
Prices in |
|
|
|
|
|
|
|
|
|
|
|
Active |
|
|
|
|
|
|
|
|
|
|
|
Markets |
|
Significant |
|
|
|
||
|
|
|
|
for |
|
Other |
|
Significant |
|||
|
|
|
|
Identical |
|
Observable |
|
Unobservable |
|||
|
Fair |
|
Assets |
|
Inputs |
|
Inputs |
||||
|
Value |
|
(Level 1) |
|
(Level 2) |
|
(Level 3) |
||||
October 1, 2017 |
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
$ |
2,866 |
|
|
2,866 |
|
|
- |
|
|
- |
Derivatives |
|
11,975 |
|
|
- |
|
|
11,975 |
|
|
- |
Total assets |
$ |
14,841 |
|
|
2,866 |
|
|
11,975 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Derivatives |
$ |
22,671 |
|
|
- |
|
|
22,671 |
|
|
- |
Option agreement |
|
28,510 |
|
|
- |
|
|
- |
|
|
28,510 |
Total liabilities |
$ |
51,181 |
|
|
- |
|
|
22,671 |
|
|
28,510 |
|
|
|
|
|
|
|
|
|
|
|
|
September 25, 2016 |
|
|
|
|
|
|
|
|
|
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
Available-for-sale securities |
$ |
4,986 |
|
|
4,986 |
|
|
- |
|
|
- |
Derivatives |
|
39,115 |
|
|
- |
|
|
39,115 |
|
|
- |
Total assets |
$ |
44,101 |
|
|
4,986 |
|
|
39,115 |
|
|
- |
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
Derivatives |
$ |
19,390 |
|
|
- |
|
|
19,390 |
|
|
- |
Option agreement |
|
27,460 |
|
|
- |
|
|
- |
|
|
27,460 |
Total liabilities |
$ |
46,850 |
|
|
- |
|
|
19,390 |
|
|
27,460 |
|
|
|
|
|
|
|
|
|
|
|
|
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 |
Available-for-sale securities include equity securities of one company quoted on an active public market.
The Company's derivatives consist 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 Company’s option agreement relates to an equity method investment in Discovery Family Channel (“Discovery”). The option agreement is included in other liabilities at October 1, 2017, September 25, 2016 and December 25, 2016, is valued using an option pricing model based on the fair value of the related investment. Inputs used in the option pricing model include the volatility and fair value of the underlying company which are considered unobservable inputs as they reflect the Company's own assumptions about the inputs that market participants would use in pricing the asset or liability. The Company believes that this is the best information available for use in the fair value measurement. There were no changes in these valuation techniques during the nine-month period ended October 1, 2017.
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):
|
2017 |
|
2016 |
||
Balance at beginning of year |
$ |
(28,770) |
|
|
(28,360) |
Gain from change in fair value |
|
260 |
|
|
900 |
Balance at end of third quarter |
$ |
(28,510) |
|
|
(27,460) |
In addition to the above, the Company has three investments for which the fair value is measured using net asset value per share. At October 1, 2017, September 25, 2016 and December 25, 2016, these investments had fair values of $24,405, $23,490 and $23,571, 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 basis with 30 – 90 days’ notice.
(7) Pension and Postretirement Benefits
The components of the net periodic cost of the Company's defined benefit pension and other postretirement plans for the quarter and nine-month periods ended October 1, 2017 and September 25, 2016 are as follows:
|
Quarter Ended |
||||||||||
|
Pension |
|
Postretirement |
||||||||
|
October 1, |
|
September 25, |
|
October 1, |
|
September 25, |
||||
|
2017 |
|
2016 |
|
2017 |
|
2016 |
||||
Service cost |
$ |
925 |
|
|
1,002 |
|
|
172 |
|
|
132 |
Interest cost |
|
4,443 |
|
|
4,611 |
|
|
295 |
|
|
294 |
Expected return on assets |
|
(5,896) |
|
|
(5,512) |
|
|
- |
|
|
- |
Net amortization and deferrals |
|
2,525 |
|
|
2,134 |
|
|
- |
|
|
- |
Net periodic benefit cost |
$ |
1,997 |
|
|
2,235 |
|
|
467 |
|
|
426 |
|
Nine Months Ended |
||||||||||
|
Pension |
|
Postretirement |
||||||||
|
October 1, |
|
September 25, |
|
October 1, |
|
September 25, |
||||
|
2017 |
|
2016 |
|
2017 |
|
2016 |
||||
Service cost |
$ |
2,798 |
|
|
2,995 |
|
|
517 |
|
|
397 |
Interest cost |
|
13,598 |
|
|
13,821 |
|
|
885 |
|
|
881 |
Expected return on assets |
|
(18,057) |
|
|
(16,523) |
|
|
- |
|
|
- |
Net amortization and deferrals |
|
7,738 |
|
|
6,398 |
|
|
- |
|
|
- |
Net periodic benefit cost |
$ |
6,077 |
|
|
6,691 |
|
|
1,402 |
|
|
1,278 |
During the nine months ended October 1, 2017, the Company made cash contributions of $26,600 to its defined benefit pension plans. During fiscal 2017, the Company expects to make cash contributions to its defined benefit pension plans of approximately $29,000 in the aggregate.
(8) Derivative Financial Instruments
Hasbro uses foreign currency forward contracts to mitigate the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions. These over-the-counter contracts, which hedge future currency requirements related to purchases of inventory, product sales and other cross-border transactions not denominated in the functional currency of the business unit, are primarily denominated in United States and Hong Kong dollars, and Euros. All contracts are entered into with a number of counterparties, all of which are major financial institutions. The Company believes that a default by a single counterparty would not have a material adverse effect on the financial condition of the Company. Hasbro does not enter into derivative financial instruments for speculative purposes.
The Company uses foreign currency forward contracts to reduce the impact of currency rate fluctuations on firmly committed and projected future foreign currency transactions. All of the Company's designated foreign currency forward contracts are considered to be cash flow hedges. These instruments hedge a portion of the Company's currency requirements associated with anticipated inventory purchases, product sales and other cross-border transactions in 2017 through 2022.
At October 1, 2017, September 25, 2016 and December 25, 2016, the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows:
|
October 1, 2017 |
|
September 25, 2016 |
|
December 25, 2016 |
||||||||||||
|
Notional |
|
Fair |
|
Notional |
|
Fair |
|
Notional |
|
Fair |
||||||
Hedged transaction |
Amount |
|
Value |
|
Amount |
|
Value |
|
Amount |
|
Value |
||||||
Inventory purchases |
$ |
894,529 |
|
|
(16,597) |
|
|
1,045,400 |
|
|
23,662 |
|
|
945,728 |
|
|
60,520 |
Sales |
|
579,421 |
|
|
17,215 |
|
|
318,283 |
|
|
(559) |
|
|
290,181 |
|
|
9,775 |
Royalties and Other |
|
266,670 |
|
|
(12,567) |
|
|
233,367 |
|
|
(4,111) |
|
|
198,849 |
|
|
1,633 |
Total |
$ |
1,740,620 |
|
|
(11,949) |
|
|
1,597,050 |
|
|
18,992 |
|
|
1,434,758 |
|
|
71,928 |
The Company has a master agreement with each of its counterparties that allows for the netting of outstanding forward contracts. The fair values of the Company's foreign currency forward contracts designated as cash flow hedges are recorded in the consolidated balance sheets at October 1, 2017, September 25, 2016 and December 25, 2016 as follows:
|
October 1, |
|
September 25, |
|
December 25, |
|||
|
2017 |
|
2016 |
|
2016 |
|||
Prepaid expenses and other current assets |
|
|
|
|
|
|
|
|
Unrealized gains |
$ |
10,207 |
|
|
34,179 |
|
|
34,265 |
Unrealized losses |
|
(7,977) |
|
|
(9,247) |
|
|
(2,075) |
Net unrealized gains |
$ |
2,230 |
|
|
24,932 |
|
|
32,190 |
|
|
|
|
|
|
|
|
|
Other assets |
|
|
|
|
|
|
|
|
Unrealized gains |
$ |
11,631 |
|
|
20,974 |
|
|
51,839 |
Unrealized losses |
|
(3,139) |
|
|
(7,524) |
|
|
(792) |
Net unrealized gains |
$ |
8,492 |
|
|
13,450 |
|
|
51,047 |
|
|
|
|
|
|
|
|
|
Accrued liabilities |
|
|
|
|
|
|
|
|
Unrealized gains |
$ |
5,354 |
|
|
4,352 |
|
|
8,481 |
Unrealized losses |
|
(20,999) |
|
|
(19,420) |
|
|
(19,790) |
Net unrealized losses |
$ |
(15,645) |
|
|
(15,068) |
|
|
(11,309) |
|
|
|
|
|
|
|
|
|
Other liabilities |
|
|
|
|
|
|
|
|
Unrealized gains |
$ |
8,325 |
|
|
992 |
|
|
- |
Unrealized losses |
|
(15,351) |
|
|
(5,314) |
|
|
- |
Net unrealized losses |
$ |
(7,026) |
|
|
(4,322) |
|
|
- |
Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the quarter and nine-month periods ended October 1, 2017 and September 25, 2016 as follows:
|
Quarter Ended |
|
Nine Months Ended |
||||||||
|
October 1, |
|
September 25, |
|
October 1, |
|
September 25, |
||||
|
2017 |
|
2016 |
|
2017 |
|
2016 |
||||
Statements of Operations Classification |
|
|
|
|
|
|
|
|
|
|
|
Cost of sales |
$ |
(5,971) |
|
|
13,863 |
|
|
6,614 |
|
|
40,999 |
Net Revenues |
|
2,316 |
|
|
7,125 |
|
|
3,332 |
|
|
7,541 |
Other |
|
(2,311) |
|
|
(1,505) |
|
|
(2,716) |
|
|
(2,236) |
Net realized (losses) gains |
$ |
(5,966) |
|
|
19,483 |
|
|
7,230 |
|
|
46,304 |
In addition, losses of $9 and $6,495 were reclassified to earnings as a result of hedge ineffectiveness for the quarter and nine-month periods ended October 1, 2017, respectively. Net (losses) gains of $(549) and $4,271 were reclassified to earnings as a result of hedge ineffectiveness for the quarter and nine-month periods ended September 25, 2016, respectively.
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 October 1, 2017, September 25, 2016 and December 25, 2016 the total notional amounts of the Company's undesignated derivative instruments were $339,227, $264,029 and $268,308, respectively.
At October 1, 2017, September 25, 2016 and December 25, 2016, the fair values of the Company's undesignated derivative financial instruments were recorded in the consolidated balance sheets as follows:
|
October 1, |
|
September 25, |
|
December 25, |
|||
|
2017 |
|
2016 |
|
2016 |
|||
Prepaid expenses and other current assets |
|
|
|
|
|
|
|
|
Unrealized gains |
$ |
2,606 |
|
|
812 |
|
|
5,854 |
Unrealized losses |
|
(1,353) |
|
|
(79) |
|
|
(1,197) |
Net unrealized gain |
$ |
1,253 |
|
|
733 |
|
|
4,657 |
|
|
|
|
|
|
|
|
|
Total unrealized gain, net |
$ |
1,253 |
|
|
733 |
|
|
4,657 |
The Company recorded net losses of $2,976 and $2,251 on these instruments to other income, net for the quarter and nine-month periods ended October 1, 2017, respectively, and net gains of $6,533 and $14,867 on these instruments to other income, net for the quarter and nine-month periods ended September 25, 2016, respectively, relating to the change in fair value of such derivatives, substantially offsetting gains and losses from the change in fair value of intercompany loans to which the contracts relate.
For additional information related to the Company's derivative financial instruments see Notes 4 and 6.
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, vehicles 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 licensing and gaming, and movie and television entertainment operations. The Global Operations segment is responsible for sourcing finished products for the Company's U.S. and Canada and International segments.
Segment performance is measured at the operating profit level. Included in Corporate and Eliminations are certain corporate expenses, including the elimination of intersegment transactions and certain assets benefiting more than one segment. Intersegment sales and transfers are reflected in management reports at amounts approximating cost. Certain shared costs, including global development and marketing expenses and corporate administration, are allocated to segments based upon expenses and foreign exchange rates fixed at the beginning of the year, with adjustments to actual expenses and foreign exchange rates included in Corporate and Eliminations. The accounting policies of the segments are the same as those referenced in note 1.
Results shown for the quarter and nine months are not necessarily representative of those which may be expected for the full year 2017, nor were those of the comparable 2016 period representative of those actually experienced for the full year 2016. Similarly, such results are not necessarily those which would be achieved were each segment an unaffiliated business enterprise.
Information by segment and a reconciliation to reported amounts for the quarter and nine-month periods ended October 1, 2017 and September 25, 2016 are as follows.
|
Quarter Ended |
||||||||||
|
October 1, 2017 |
|
September 25, 2016 |
||||||||
Net revenues |
External |
|
Affiliate |
|
External |
|
Affiliate |
||||
U.S. and Canada |
$ |
993,833 |
|
|
2,201 |
|
|
932,844 |
|
|
2,392 |
International |
|
739,229 |
|
|
198 |
|
|
690,745 |
|
|
417 |
Entertainment and Licensing |
|
58,440 |
|
|
7,714 |
|
|
56,130 |
|
|
7,806 |
Global Operations (a) |
|
- |
|
|
665,746 |
|
|
38 |
|
|
629,090 |
Corporate and Eliminations |
|
- |
|
|
(675,859) |
|
|
- |
|
|
(639,705) |
|
$ |
1,791,502 |
|
|
- |
|
|
1,679,757 |
|
|
- |
|
Nine Months Ended |
||||||||||
|
October 1, 2017 |
|
September 25, 2016 |
||||||||
Net revenues |
External |
|
Affiliate |
|
External |
|
Affiliate |
||||
U.S. and Canada |
$ |
1,939,837 |
|
|
7,047 |
|
|
1,802,391 |
|
|
5,388 |
International |
|
1,511,074 |
|
|
213 |
|
|
1,436,911 |
|
|
678 |
Entertainment and Licensing |
|
162,663 |
|
|
14,727 |
|
|
150,521 |
|
|
16,607 |
Global Operations (a) |
|
97 |
|
|
1,329,516 |
|
|
59 |
|
|
1,298,337 |
Corporate and Eliminations |
|
- |
|
|
(1,351,503) |
|
|
- |
|
|
(1,321,010) |
|
$ |
3,613,671 |
|
|
- |
|
|
3,389,882 |
|
|
- |
|
Quarter Ended |
|
Nine Months Ended |
||||||||
|
October 1, |
|
September 25, |
|
October 1, |
|
September 25, |
||||
Operating profit (loss) |
2017 |
|
2016 |
|
2017 |
|
2016 |
||||
U.S. and Canada |
$ |
217,278 |
|
|
228,034 |
|
|
363,589 |
|
|
364,322 |
International |
|
132,007 |
|
|
133,075 |
|
|
149,435 |
|
|
165,582 |
Entertainment and Licensing |
|
16,910 |
|
|
14,095 |
|
|
39,580 |
|
|
33,367 |
Global Operations (a) |
|
11,497 |
|
|
24,852 |
|
|
4,723 |
|
|
25,428 |
Corporate and Eliminations (b) |
|
(16,748) |
|
|
(37,955) |
|
|
(18,056) |
|
|
(55,808) |
|
$ |
360,944 |
|
|
362,101 |
|
|
539,271 |
|
|
532,891 |
|
October 1, |
|
September 25, |
|
December 25, |
|||
Total assets |
2017 |
|
2016 |
|
2016 |
|||
U.S. and Canada |
$ |
3,423,213 |
|
|
2,316,624 |
|
|
2,559,792 |
International |
|
2,524,821 |
|
|
2,261,742 |
|
|
2,368,761 |
Entertainment and Licensing |
|
884,014 |
|
|
632,933 |
|
|
692,898 |
Global Operations |
|
3,080,573 |
|
|
2,038,736 |
|
|
2,326,566 |
Corporate and Eliminations (b) |
|