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Segment Reporting | 12 Months Ended
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Dec. 30, 2018
Segment Reporting [Abstract] |
Segment Reporting | (21) 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 t oys and related electronic interactive products, fashion and other dolls, infant products, play sets, preschool toys, plush products, sports action blasters and accessories, vehicles and toy-related specialty products, as well as traditional board games, a nd 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 Paci fic, and Latin and South American regions. The Company's Entertainment and Licensing segment includes the Company's consumer products licensing, digital gaming, movie and television entertainment operations. The Global Operations segment is responsible for sourcing finished products for the Company's U.S. and Canada and International segments. Segment performance is measured at the operating profit level. Included in Corporate and eliminations are certain corporate expenses, including the elimination of in tersegment transactions and certain 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 c orporate administration, are allocated 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 poli cies of the segments are the same as those referenced in note 1. Results shown for fiscal years 2018, 2017 and 2016 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
2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. and Canada | $ | 2,433,412 |  |  | 10,242 |  |  | 382,013 |  |  | 12,327 |  |  | 29,775 |  |  | 2,928,209
International |  | 1,847,585 |  |  | 290 |  |  | 39,470 |  |  | 6,530 |  |  | 4,652 |  |  | 2,229,053
Entertainment and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Licensing |  | 298,540 |  |  | 15,796 |  |  | 17,311 |  |  | 3,419 |  |  | 2,111 |  |  | 592,202
Global Operations (a) |  | 109 |  |  | 1,439,292 |  |  | (8,415) |  |  | 84,759 |  |  | 82,912 |  |  | 3,197,847
Corporate and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| eliminations (b) |  | — |  |  | (1,465,620) |  |  | (99,327) |  |  | 60,923 |  |  | 20,976 |  |  | (3,684,323)
Consolidated Total | $ | 4,579,646 |  |  | — |  |  | 331,052 |  |  | 167,958 |  |  | 140,426 |  |  | 5,262,988
2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. and Canada | $ | 2,690,527 |  |  | 8,157 |  |  | 509,942 |  |  | 19,457 |  |  | 5,849 |  |  | 2,749,384
International |  | 2,233,579 |  |  | 382 |  |  | 228,669 |  |  | 9,527 |  |  | 4,669 |  |  | 2,499,985
Entertainment and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| Licensing |  | 285,579 |  |  | 21,889 |  |  | 96,400 |  |  | 5,526 |  |  | 7,637 |  |  | 626,193
Global Operations (a) |  | 97 |  |  | 1,644,650 |  |  | 4,014 |  |  | 92,595 |  |  | 89,619 |  |  | 2,819,768
Corporate and |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
| eliminations (b) |  | — |  |  | (1,675,078) |  |  | (28,666) |  |  | 44,731 |  |  | 27,103 |  |  | (3,405,347)
Consolidated Total | $ | 5,209,782 |  |  | — |  |  | 810,359 |  |  | 171,836 |  |  | 134,877 |  |  | 5,289,983
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
(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 individ ual operating segments are done at the beginning of the year based on budgeted amounts. Any differences between actual and budgeted amounts are reflected in Corporate and eliminations. Furthermore, Corporate and eliminations includes elimination of inter-c ompany 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 assure d over the life of the contract. During 2018, 2017 and 201 6, affiliate licensing and service fees of $338,304, $298,693 and $283,078, respectively, that were received in 2017, 2016 and 2015, respectively, were recognized as revenue and eliminated in consoli dation. 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 30, 2018.
| 2018 |  | 2017 |  | 2016
Europe | $ | 1,046,901 |  |  | 1,381,949 |  |  | 1,404,478
Latin America |  | 454,066 |  |  | 485,088 |  |  | 463,638
Asia Pacific |  | 346,618 |  |  | 366,542 |  |  | 326,535
Net revenues | $ | 1,847,585 |  |  | 2,233,579 |  |  | 2,194,651
The following table presents consolidated net revenues by brand portfolio for the three fiscal years ended December 3 0, 201 8.
| 2018 |  | 2017 |  | 2016
Franchise brands | $ | 2,445,902 |  |  | 2,690,394 |  |  | 2,375,265
Partner brands |  | 987,283 |  |  | 1,271,597 |  |  | 1,412,770
Hasbro gaming |  | 787,692 |  |  | 893,019 |  |  | 813,433
Emerging brands |  | 358,769 |  |  | 354,772 |  |  | 418,354
Net revenues | $ | 4,579,646 |  |  | 5,209,782 |  |  | 5,019,822
For the years ended December 3 1, 2017 and December 25,2016, net revenues of $122,432 and $47,597, respectively, were reclassified from Emerging Brands to Franchise Brands to conform to the presentation for the year ended Decembe r 30, 2018. Hasbro's total gaming category, including all gaming net revenues, most notably MAGIC: THE GATHERING and MONOPO LY, totaled $1,443,164, $1,497,795 and $1,387,077 for the years ended December 30, 2018, December 31, 2017 and December 25, 2016, respectively. 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.
|  | 2018 |  | 2017 |  | 2016
Net revenues |  |  |  |  |  |  |  |
| United States | $ | 2,497,331 |  |  | 2,732,034 |  |  | 2,575,696
| International |  | 2,082,315 |  |  | 2,477,748 |  |  | 2,444,126
|  |  | 4,579,646 |  |  | 5,209,782 |  |  | 5,019,822
Long-lived assets |  |  |  |  |  |  |  |
| United States |  | 1,287,444 |  |  | 894,597 |  |  | 933,848
| International |  | 148,753 |  |  | 155,558 |  |  | 150,054
|  | $ | 1,436,197 |  |  | 1,050,155 |  |  | 1,083,902
Principal international markets include Europe, Canada, Mexico and Latin America, Australia, China 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. In 2018 the Company’s largest customers were Wal-Mart Stores, Inc. and Target Corporation. Sales to t hese customers amounted to 20%, and 9%, respectively of consolidated net revenues in 2018. In 2017 and 2016 the Company's largest customers were Wal-Mart Stores, Inc., Toys “R” Us, Inc. and Target Corporation. Sales to these customers amounted t o 19%, 9% and 9%, respectively, of consolidated net revenues during 2017 and 18%, 9% and 9%, respectively, of consolidated net revenues during 2016. These sales were primarily within the U.S. and Canada segment. Hasbro purchases certain components used i n 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 alternative 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 its 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, tariffs, border adjustment taxes or other measures by the United States or the European Union against a class of products im ported by Hasbro from, or the loss of “normal trade relations" status with, China, or other countries where we manufacture products, or other factors which increase the cost of manufacturing in China, or other countries where we manufacture products, such as higher labor costs or an appreciation in the Chinese Yuan, could significantly disrupt our operations and/or significantly increase the cost of the products which are manufactured and imported into other markets. The Company has agreements 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. The Company also has a license to market products with The Walt Disney Company for DISNEY PRINCESS and DISNEY FROZEN lines. Hasbro’s net revenues from these licenses can be significant in any given year based on the level of third party entertainment. In addition to DISNEY PRINCESS and DISNEY FROZEN, both M arvel 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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 280 -URI http://asc.fasb.org/topic&trid=2134510 + Details
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