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Segment Reporting | 12 Months Ended
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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.

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- Definition The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 34 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8981-108599 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 41 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9038-108599 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 33 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8971-108599 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 12 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8595-108599 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8380-108599 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 32 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8933-108599 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 26 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8844-108599 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 35 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8984-108599 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 40 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9031-108599 Reference 10: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 42 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e9054-108599 Reference 11: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8538-108599 Reference 12: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 29 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8864-108599 Reference 13: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 31 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8924-108599 Reference 14: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -SubTopic 10 -Section 50 -Paragraph 30 -URI http://asc.fasb.org/extlink&oid=68060357&loc=d3e8906-108599 + Details
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