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Income Taxes | 12 Months Ended
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Dec. 27, 2015
Income Taxes [Abstract] |
Income Taxes | (10) Income Taxes Income taxes attributable to earnings before income taxes are:
|  | 2015 |  |  | 2014 |  |  | 2013 |
Current |  |  |  |  |  |  |  |  |
United States |  | $ | 101,591 |  |  |  | 70,390 |  |  |  | 12,760 |
State and local |  |  | 3,352 |  |  |  | 3,134 |  |  |  | 1,677 |
International |  |  | 71,054 |  |  |  | 62,909 |  |  |  | 72,640 |
|  |  | 175,997 |  |  |  | 136,433 |  |  |  | 87,077 |
Deferred |  |  |  |  |  |  |  |  |  |  |  |
United States |  |  | (13,771 | ) |  |  | (15,448 | ) |  |  | (10,751 | )
State and local |  |  | (472 | ) |  |  | (530 | ) |  |  | (368 | )
International |  |  | (4,711) |  |  |  | 6,223 |  |  |  | (8,064 | )
|  |  | (18,954 | ) |  |  | (9,755 | ) |  |  | (19,183 | )
Total income taxes |  | $ | 157,043 |  |  |  | 126,678 |  |  |  | 67,894 |
Certain income tax (benefits) expenses, not reflected in income taxes in the consolidated statements of operations totaled $(5,434) in 2015, $(38,223) in 2014 and $6,733 in 2013 which relate primarily to stock compensation and pensions. In 2015, 2014 and 2013, the deferred tax portion of the total (benefit) expense was $8,180, $(27,236) and $29,033, respectively. A reconciliation of the statutory United States federal income tax rate to Hasbro's effective income tax rate is as follows. Certain prior year amounts have been reclassified to conform with current year presentation.
| 2015 |  | 2014 |  | 2013
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 | (15.6) |  | (6.4) |  | (13.6)
Change in unrecognized tax benefits | 4.3 |  | (5.7) |  | (1.5)
Other, net | 2.0 |  | 0.3 |  | (0.9)
| 26.0% |  | 23.5% |  | 19.3%
The components of earnings before income taxes, determined by tax jurisdiction, are as follows:
|  | 2015 |  |  | 2014 |  |  | 2013 |
United States |  | $ | 155,120 |  |  |  | 190,769 |  |  |  | 54,424 |
International |  |  | 448,795 |  |  |  | 349,219 |  |  |  | 297,398 |
Total earnings before income taxes |  | $ | 603,915 |  |  |  | 539,988 |  |  |  | 351,822 |
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 27, 2015 and December 28, 2014 are:
|  | 2015 |  |  | 2014 |
Deferred tax assets: |  |  |  |  |  |
Accounts receivable |  | $ | 23,568 |  |  |  | 20,874 |
Inventories |  |  | 15,168 |  |  |  | 14,698 |
Loss and credit carryforwards |  |  | 28,893 |  |  |  | 32,393 |
Operating expenses |  |  | 43,029 |  |  |  | 48,998 |
Pension |  |  | 49,746 |  |  |  | 53,789 |
Other compensation |  |  | 62,587 |  |  |  | 48,498 |
Postretirement benefits |  |  | 9,253 |  |  |  | 10,092 |
Interest rate hedge |  |  | 10,937 |  |  |  | 11,638 |
Tax sharing agreement |  |  | 18,379 |  |  |  | 18,840 |
Other |  |  | 31,441 |  |  |  | 27,817 |
Gross deferred tax assets |  |  | 293,001 |  |  |  | 287,637 |
Valuation allowance |  |  | (23,593 | ) |  |  | (26,319 | )
Net deferred tax assets |  |  | 269,408 |  |  |  | 261,318 |
Deferred tax liabilities: |  |  |  |  |  |  |  |
Depreciation and amortization of long-lived assets |  |  | 53,755 |  |  |  | 59,895 |
Equity method investment |  |  | 8,205 |  |  |  | 2,001 |
Other |  |  | 16,632 |  |  |  | 13,447 |
Deferred tax liabilities |  |  | 78,592 |  |  |  | 75,343 |
Net deferred income taxes |  | $ | 190,816 |  |  |  | 185,975 |
Hasbro has a valuation allowance for certain deferred tax assets at December 27, 2015 of $23,593, which is a decrease of $2,726 from $26,319 at December 28, 2014. 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 2016. Based on Hasbro's history of taxable income and the anticipation of sufficient taxable income in years when the temporary differences are expected to become tax deductions, the Company believes that it will realize the benefit of the deferred tax assets, net of the existing valuation allowance. At December 27, 2015 and December 28, 2014, the Company's net deferred income taxes are recorded in the consolidated balance sheets as follows:
|  | 2015 |  |  | 2014 |
Other assets |  | $ | 199,563 |  |  |  | 193,875 |
Other liabilities |  |  | (8,747 | ) |  |  | (7,900 | )
Net deferred income taxes |  | $ | 190,816 |  |  |  | 185,975 |
A reconciliation of unrecognized tax benefits, excluding potential interest and penalties, for the fiscal years ended December 27, 2015, December 28, 2014 and December 29, 2013 is as follows:
|  | 2015 |  |  | 2014 |  |  | 2013 |
Balance at beginning of year |  | $ | 35,416 |  |  |  | 55,459 |  |  |  | 103,067 |
Gross increases in prior period tax positions |  |  | 491 |  |  |  | 34,225 |  |  |  | 8,677 |
Gross decreases in prior period tax positions |  |  | (1,773 | ) |  |  | (1,510 | ) |  |  | (33,181 | )
Gross increases in current period tax positions |  |  | 32,547 |  |  |  | 8,470 |  |  |  | 10,353 |
Decreases related to settlements with tax authorities |  |  | (355 | ) |  |  | (58,652) |  |  |  | (31,478) |
Decreases from the expiration of statute of limitations |  |  | (2,777 | ) |  |  | (2,576 | ) |  |  | (1,979 | )
Balance at end of year |  | $ | 63,549 |  |  |  | 35,416 |  |  |  | 55,459 |
If the $63,549 balance as of December 27, 2015 is recognized, approximately $59,000 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 2015, 2014, and 2013 the Company recognized $1,422, $3,134 and $4,634, respectively, of potential interest and penalties, which are included as a component of income taxes in the accompanying consolidated statements of operations. At December 27, 2015, December 28, 2014 and December 29, 2013, the Company had accrued potential interest and penalties of $4,778, $4,042 and $24,547, 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 business, the Company is regularly audited by U.S. federal, state and local and international tax authorities in various tax jurisdictions. The Company is no longer subject to U.S. federal income tax examinations for years before 2013. With few exceptions, the Company is no longer subject to U.S. state or local and non-U.S. income tax examinations by tax authorities in its major jurisdictions for years before 2009. During 2014, as a result of amending 2010 through 2012 U.S. federal 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 related 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 amended returns, including other adjustments, was $13,480 during the first quarter of 2014. The Company is currently under income tax examination in several U.S. state and local and non-U.S. jurisdictions. During 2013, the U.S. Internal Revenue Service completed an examination related to the 2008 and 2009 U.S. federal income tax returns. As the result of the completion of this examination, unrecognized tax benefits, which are included as a component of other liabilities in the consolidated balance sheets, decreased $67,174. Of this amount, $29,970 was recorded as an increase to current liabilities, $14,112 as a reduction of deferred tax assets and the remainder as a reduction of income tax expense. The total income tax benefit resulting from the completion of the examination, including other adjustments, totaled $23,637 during 2013. 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 subsidiaries 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 authorities. 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 $2,219,000 at December 27, 2015. In the event that all international undistributed earnings were remitted to the United States, the amount of incremental taxes would be approximately $548,000.

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- Definition The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08.(h)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32559-109319 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 15 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32718-109319 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32537-109319 + Details
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