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Derivative Financial Instruments | 12 Months Ended
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Dec. 30, 2018
Derivative Financial Instruments [Abstract] |
Derivative Financial Instruments | (1 7) 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 Ko ng 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 con dition of the Company. 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 proje cted 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 invent ory purchases and other cross-border transactions in years 2019 through 2022. At December 30, 2018 and December 31, 2017, 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:
| 2018 |  | 2017
Hedged transaction | Notional |  | Fair |  | Notional |  | Fair
| Amount |  | Value |  | Amount |  | Value
Inventory purchases | $ | 468,305 |  |  | 15,089 |  |  | 756,673 |  |  | (13,695)
Sales |  | 298,194 |  |  | 11,232 |  |  | 423,315 |  |  | 16,144
Royalties and Other |  | 26,341 |  |  | (304) |  |  | 196,889 |  |  | (10,383)
Total | $ | 792,840 |  |  | 26,017 |  |  | 1,376,877 |  |  | (7,934)
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 consolid ated balance sheet at December 30, 2018 and December 31, 2017 as follows:
| 2018 |  | 2017
Prepaid expenses and other current assets |  |  |  |  |
Unrealized gains | $ | 21,718 |  |  | 13,666
Unrealized losses |  | (972) |  |  | (10,319)
Net unrealized gain | $ | 20,746 |  |  | 3,347
Other assets |  |  |  |  |
Unrealized gains | $ | 6,173 |  |  | 11,255
Unrealized losses |  | (843) |  |  | (2,376)
Net unrealized gain | $ | 5,330 |  |  | 8,879
Accrued liabilities |  |  |  |  |
Unrealized gains | $ | 77 |  |  | 4,215
Unrealized losses |  | (136) |  |  | (15,484)
Net unrealized loss | $ | (59) |  |  | (11,269)
Other liabilities |  |  |  |  |
Unrealized gains | $ | — |  |  | 4,546
Unrealized losses |  | — |  |  | (13,437)
Net unrealized loss | $ | — |  |  | (8,891)
Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings to net earnings for the years ended December 30, 2018, December 31, 2017 and December 25, 2016 as follows:
| 2018 |  | 2017 |  | 2016
Consolidated Statements of Operations Classification |  |  |  |  |  |  |  |
Cost of sales | $ | 3,909 |  |  | (1,905) |  |  | 57,786
Sales |  | 3,479 |  |  | 5,315 |  |  | 7,467
Royalties and other |  | (527) |  |  | (6,000) |  |  | (5,776)
Net realized gains (losses) | $ | 6,861 |  |  | (2,590) |  |  | 59,477
In addition, net (losses) gains of $(6,173), $(6,847) and $400 were reclassified to earnings as a result of hedge ineffectiveness in 2018, 2017 and 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. 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 30, 2018 and De cember 31, 2017, the total notional amount of the Company’s undesignated derivative instruments was $4 52,773 and $418,471, respectively. At December 30, 2018 and December 31, 2017, the fair value of the Company’s un designated derivative financial instrume nts are recorded in the consolidated balance sheets as follows:
| 2018 |  | 2017
Accrued liabilities |  |  |  |  |
Unrealized gains | $ | 1,269 |  |  | 1,793
Unrealized losses |  | (2,820) |  |  | (4,684)
Net unrealized loss | $ | (1,551) |  |  | (2,891)
Total unrealized losses | $ | (1,551) |  |  | (2,891)
The Company recorded net gains (losses) of $11,698, $(4,267) and $32,524 on these instruments to other (income) expense, net for 201 8, 201 7 and 201 6, 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 3 and 13.

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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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 815 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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