XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.8.0.1

Derivative Financial Instruments | 9 Months Ended
--- | ---
Oct. 01, 2017
Derivative Financial Instruments (Thousands of Dollars) [Abstract] |
Derivative Financial Instruments | (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 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 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 $(5 49) 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. 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. T he 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 der i vative 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 Comp any recorded net losses of $2,976 and $2,25 1 on these instruments to other income, net f or the quarter and nine-month periods ended October 1, 2017, respectively, and net gains of $6,533 and $1 4,867 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 val ue of intercompany loans to which the contracts relate. For additional information related to the Company's derivative f inancial instruments see Notes 4 and 6.

X
- References No definition available. + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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 -URI http://asc.fasb.org/topic&trid=2229140 + Details
Name: | us-gaap_DerivativeInstrumentsAndHedgingActivitiesDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration