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Derivative Financial Instruments | 3 Months Ended
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Mar. 31, 2019
Derivative Financial Instruments (Thousands of Dollars) [Abstract] |
Derivative Financial Instruments | (9) 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 cons idered 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 2019 thr ough 2022. A t March 31, 2019, April 1, 2018 and December 30, 2018, the notional amounts and fair values of the Company's foreign currency forward contracts designated as cash flow hedging instruments were as follows:
| March 31, 2019 |  | April 1, 2018 |  | December 30, 2018
| Notional |  | Fair |  | Notional |  | Fair |  | Notional |  | Fair
Hedged transaction | Amount |  | Value |  | Amount |  | Value |  | Amount |  | Value
Inventory purchases | $ | 486,999 |  |  | 21,649 |  |  | 718,925 |  |  | (31,453) |  |  | 468,305 |  |  | 15,089
Sales |  | 263,221 |  |  | 8,358 |  |  | 375,441 |  |  | 7,323 |  |  | 298,194 |  |  | 11,232
Royalties and Other |  | 26,422 |  |  | 190 |  |  | 178,896 |  |  | (11,602) |  |  | 26,341 |  |  | (304)
Total | $ | 776,642 |  |  | 30,197 |  |  | 1,273,262 |  |  | (35,732) |  |  | 792,840 |  |  | 26,017
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 March 31, 2019, April 1, 2018 and December 30, 2018 as follows:
| March 31, |  | April 1, |  | December 30,
| 2019 |  | 2018 |  | 2018
Prepaid expenses and other current assets |  |  |  |  |  |  |  |
Unrealized gains | $ | 22,737 |  |  | 458 |  |  | 21,718
Unrealized losses |  | (2,008) |  |  | (405) |  |  | (972)
Net unrealized gains | $ | 20,729 |  |  | 53 |  |  | 20,746
Other assets |  |  |  |  |  |  |  |
Unrealized gains | $ | 9,752 |  |  | 5,996 |  |  | 6,173
Unrealized losses |  | (239) |  |  | (3,089) |  |  | (843)
Net unrealized gains | $ | 9,513 |  |  | 2,907 |  |  | 5,330
Accrued liabilities |  |  |  |  |  |  |  |
Unrealized gains | $ | - |  |  | 8,218 |  |  | 77
Unrealized losses |  | (45) |  |  | (30,826) |  |  | (136)
Net unrealized losses | $ | (45) |  |  | (22,608) |  |  | (59)
Other liabilities |  |  |  |  |  |  |  |
Unrealized gains | $ | - |  |  | 2,846 |  |  | -
Unrealized losses |  | - |  |  | (18,930) |  |  | -
Net unrealized losses | $ | - |  |  | (16,084) |  |  | -
Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings (loss) to net earnings for the quarter s ended March 31, 2019 and April 1, 2018 as follows:
| Quarter Ended
| March 31, |  | April 1,
| 2019 |  | 2018
Statements of Operations Classification |  |  |  |  |
Cost of sales | $ | 2,614 |  |  | (3,891)
Net revenues |  | 878 |  |  | 332
Other |  | 118 |  |  | (1,423)
Net realized gains (losses) | $ | 3,610 |  |  | (4,982)
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 March 31, 2019, April 1, 2018 and December 30, 2018 the total notional amounts of the Company's undesignated deri vative instruments were $293,326, $132,945 and $452,773, respectively. At March 31, 2019, April 1, 2018 and December 30, 2018, the fair values of the Company's undesignated derivative financial instruments were recorded in the consolidated balance sheets as follows:
| March 31, |  | April 1, |  | December 30,
| 2019 |  | 2018 |  | 2018
Prepaid expenses and other current assets |  |  |  |  |  |  |  |
Unrealized gains | $ | 2,391 |  |  | - |  |  | -
Unrealized losses |  | (337) |  |  | - |  |  | -
Net unrealized gains | $ | 2,054 |  |  | - |  |  | -
Accrued liabilities |  |  |  |  |  |  |  |
Unrealized gains | $ | - |  |  | 383 |  |  | 1,269
Unrealized losses |  | - |  |  | (1,119) |  |  | (2,820)
Net unrealized losses |  | - |  |  | (736) |  |  | (1,551)
Total unrealized gains (losses), net | $ | 2,054 |  |  | (736) |  |  | (1,551)
The Comp any recorded net gains (losses) of $4,809 and $(6,700) on these instruments to other income, net for the quarters ended March 31, 2019 and April 1, 2018, 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 contracts relate. For additional information related to the Company's deriva tive f inancial instruments see Notes 5 and 7.

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- References No definition available. + Details
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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 -URI http://asc.fasb.org/topic&trid=2229140 + Details
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