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Segment Reporting | 12 Months Ended
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Dec. 29, 2019
Segment Reporting [Abstract] |
Segment Reporting | 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. For the periods presented in these consolidated financial statements, the Company’s segments are (i) U.S. and Canada, (ii) International, (iii) Entertainment, Licensing and Digital, 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, vehicles 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, Licensing and Digital 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. During the first quarter of 2019, the Company realigned its financial reporting segments to include all digital gaming businesses within the re-named Entertainment, Licensing and Digital reporting segment. As a result of the realignment, 2018 and 2017 results for the U.S. and Canada and the former Entertainment and Licensing segments have been restated to reflect those changes. 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 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 corporate 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 policies of the segments are the same as those referenced in note 1. Results shown for fiscal years 2019, 2018 and 2017 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 External Customers |  | Affiliate Revenue |  | Operating Profit (Loss) |  | Depreciation and Amortization |  | Capital Additions |  | Total Assets
2019 |  |  |  |  |  |  |  |  |  |  |
U.S. and Canada | $ | 2,449,280 |  |  | 11,016 |  |  | 415,436 |  |  | 8,696 |  |  | 6,280 |  |  | 3,244,950 |
International | 1,836,360 |  |  | 273 |  |  | 107,304 |  |  | 6,166 |  |  | 4,290 |  |  | 2,482,170 |
Entertainment, Licensing and Digital | 434,467 |  |  | 11,466 |  |  | 99,686 |  |  | 8,342 |  |  | 25,718 |  |  | 695,898 |
Global Operations(a) | 120 |  |  | 1,388,623 |  |  | (7,237 | ) |  | 81,532 |  |  | 73,708 |  |  | 3,334,190 |
Corporate and eliminations(b) | — |  |  | (1,411,378 | ) |  | 36,861 |  |  | 76,051 |  |  | 23,640 |  |  | (901,580 | )
Consolidated Total | $ | 4,720,227 |  |  | — |  |  | 652,050 |  |  | 180,787 |  |  | 133,636 |  |  | 8,855,628 |
2018 |  |  |  |  |  |  |  |  |  |  |
U.S. and Canada | $ | 2,375,653 |  |  | 10,242 |  |  | 370,197 |  |  | 11,119 |  |  | 5,255 |  |  | 2,899,986 |
International | 1,847,585 |  |  | 290 |  |  | 39,470 |  |  | 6,530 |  |  | 4,652 |  |  | 2,229,053 |
Entertainment, Licensing and Digital | 356,299 |  |  | 15,796 |  |  | 29,127 |  |  | 4,627 |  |  | 26,631 |  |  | 620,425 |
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 | $ | 2,650,682 |  |  | 8,157 |  |  | 523,915 |  |  | 19,457 |  |  | 5,849 |  |  | 2,746,834 |
International | 2,233,579 |  |  | 382 |  |  | 228,669 |  |  | 9,527 |  |  | 4,669 |  |  | 2,499,985 |
Entertainment, Licensing and Digital | 325,424 |  |  | 21,889 |  |  | 82,427 |  |  | 5,526 |  |  | 7,637 |  |  | 628,743 |
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 |
(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 between actual and budgeted amounts are reflected in Corporate and eliminations. Furthermore, Corporate and eliminations includes elimination of inter-company income statement transactions. 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 29, 2019.
| 2019 |  | 2018 |  | 2017
Europe | $ | 1,043,217 |  |  | 1,046,901 |  |  | 1,381,949 |
Latin America | 435,740 |  |  | 454,066 |  |  | 485,088 |
Asia Pacific | 357,403 |  |  | 346,618 |  |  | 366,542 |
Net revenues | $ | 1,836,360 |  |  | 1,847,585 |  |  | 2,233,579 |
The following table presents consolidated net revenues by brand portfolio for the three fiscal years ended December 30, 2018.
| 2019 |  | 2018 |  | 2017
Franchise Brands | $ | 2,411,847 |  |  | 2,445,902 |  |  | 2,690,394 |
Partner Brands | 1,220,982 |  |  | 987,283 |  |  | 1,271,597 |
Hasbro Gaming | 709,750 |  |  | 787,692 |  |  | 893,019 |
Emerging Brands | 377,648 |  |  | 358,769 |  |  | 354,772 |
Net revenues | $ | 4,720,227 |  |  | 4,579,646 |  |  | 5,209,782 |
For the year ended December 31, 2017, net revenues of $122,432 were reclassified from Emerging Brands to Franchise Brands to conform to the presentation for the years ended December 29, 2019 and December 30, 2018. Hasbro’s total gaming category, including all gaming net revenues, most notably MAGIC: THE GATHERING and MONOPOLY, totaled $1,528,283, $1,443,164 and $1,497,795 for the years ended December 29, 2019, December 30, 2018 and December 31, 2017, 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.
| 2019 |  | 2018 |  | 2017
Net revenues |  |  |  |  |
United States | $ | 2,653,337 |  |  | 2,497,331 |  |  | 2,732,034 |
International | 2,066,890 |  |  | 2,082,315 |  |  | 2,477,748 |
| 4,720,227 |  |  | 4,579,646 |  |  | 5,209,782 |
Long-lived assets |  |  |  |  |
United States | 1,299,317 |  |  | 1,287,444 |  |  | 894,597 |
International | 223,820 |  |  | 148,753 |  |  | 155,558 |
| $ | 1,523,137 |  |  | 1,436,197 |  |  | 1,050,155 |
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 2019 the Company’s largest customers were Wal-Mart Stores, Inc., Target Corporation, and Amazon.com. Sales to these customers amounted to 18%, 9% and 8%, respectively of consolidated net revenues in 2019. In 2018 the Company’s largest customers were Wal-Mart Stores, Inc. and Target Corporation. Sales to these customers amounted to 20% and 9%, respectively of consolidated net revenues during 2018. In 2017 the Company’s largest customers were Wal-Mart Stores, Inc., Toys“R”Us, Inc. and Target Corporation. Sales to these customers amounted to 19%, 9% and 9%, of consolidated net revenues during 2017. These sales were primarily within the U.S. and Canada 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 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 imported 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 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://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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