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Derivative Financial Instruments | 12 Months Ended
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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.

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- Definition The entire disclosure for derivative instruments and hedging activities including, but not limited to, risk management strategies, non-hedging derivative instruments, assets, liabilities, revenue and expenses, and methodologies and assumptions used in determining the amounts. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 45 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6441202&loc=d3e80720-113993 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4C -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624171-113959 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41620-113959 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4B -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624163-113959 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579240-113959 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4D -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624177-113959 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80784-113994 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41641-113959 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5579245-113959 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4H -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624258-113959 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 30 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=35736893&loc=d3e80748-113994 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4K -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708775-113959 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4J -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5708773-113959 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4A -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5618551-113959 Reference 15: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5580258-113959 Reference 16: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4E -URI http://asc.fasb.org/extlink&oid=64837297&loc=SL5624181-113959 Reference 17: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 25 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=6886632&loc=d3e76258-113986 Reference 18: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=64837297&loc=d3e41638-113959 Reference 19: 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.(n)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 + Details
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