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Derivative Financial Instruments | 12 Months Ended
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Dec. 29, 2019
Derivative Instruments and Hedging Activities Disclosure [Abstract] |
Derivative Financial Instruments | Derivative Financial Instruments Hasbro uses foreign currency forward contracts and zero-cost collar options 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 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 condition of the Company. Hasbro does not enter into derivative financial instruments for speculative purposes. Cash Flow Hedges Hasbro uses foreign currency forward contracts and zero-cost collar options 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 and other cross-border transactions in years 2020 through 2022. At December 29, 2019 and December 30, 2018, 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:
| 2019 |  | 2018
| Notional Amount |  | Fair Value |  | Notional Amount |  | Fair Value
Hedged transaction |  |  |  |  |  |  |
Inventory purchases | $ | 398,800 |  |  | 8,727 |  |  | 468,305 |  |  | 15,089 |
Sales | 124,920 |  |  | 4,037 |  |  | 298,194 |  |  | 11,232 |
Royalties and Other | 19,499 |  |  | 140 |  |  | 26,341 |  |  | (304 | )
Total | $ | 543,219 |  |  | 12,904 |  |  | 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 sheet at December 29, 2019 and December 30, 2018 as follows:
| 2019 |  | 2018
Prepaid expenses and other current assets |  |  |
Unrealized gains | $ | 12,133 |  |  | 21,718 |
Unrealized losses | (3,955 | ) |  | (972 | )
Net unrealized gain | $ | 8,178 |  |  | 20,746 |
Other assets |  |  |
Unrealized gains | $ | 6,652 |  |  | 6,173 |
Unrealized losses | — |  |  | (843 | )
Net unrealized gain | $ | 6,652 |  |  | 5,330 |
Accrued liabilities |  |  |
Unrealized gains | $ | 293 |  |  | 77 |
Unrealized losses | (2,219 | ) |  | (136 | )
Net unrealized loss | $ | (1,926 | ) |  | (59 | )
Net gains (losses) on cash flow hedging activities have been reclassified from other comprehensive earnings to net earnings for the years ended December 29, 2019, December 30, 2018 and December 31, 2017 as follows:
| 2019 |  | 2018 |  | 2017
Consolidated Statements of Operations Classification |  |  |  |  |
Cost of sales | $ | 16,689 |  |  | 3,909 |  |  | (1,905 | )
Sales | 5,644 |  |  | 3,479 |  |  | 5,315 |
Royalties and other | 193 |  |  | (527 | ) |  | (6,000 | )
Net realized gains (losses) | $ | 22,526 |  |  | 6,861 |  |  | (2,590 | )
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 29, 2019 and December 30, 2018, the total notional amounts of the Company’s undesignated derivative instruments were $307,351 and $452,773, respectively. At December 29, 2019 and December 30, 2018, the fair value of the Company’s undesignated derivative financial instruments are recorded in the consolidated balance sheets as follows:
| 2019 |  | 2018
Accrued liabilities |  |  |
Unrealized gains | $ | 13 |  |  | 1,269 |
Unrealized losses | (3,820 | ) |  | (2,820 | )
Net unrealized loss | $ | (3,807 | ) |  | (1,551 | )
Total unrealized losses | $ | (3,807 | ) |  | (1,551 | )
The Company recorded net gains (losses) of $13,443, $11,698 and $(4,267) on these instruments to other (income) expense, net for 2019, 2018 and 2017, 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. eOne Purchase Hedges As described in note 22, during the third quarter of 2019 the Company hedged a portion of its exposure to fluctuations in the British pound sterling and other transactions in relation to the eOne acquisition using a series of both foreign exchange forward and option contracts. These contracts do not qualify for hedge accounting and as such, were marked to market through the Company's Consolidated Statement of Operations. For tax purposes these contracts qualify as nontaxable integrated tax hedges. As of December 29, 2019, the outstanding derivative instruments had a total notional value of $4,468,822 and a net fair value of $34,143 which is recorded to prepaid expenses and other assets within the Company's consolidated financial statements. In addition, the Company recorded realized gains of $79,990 on matured contracts to other (income) expense, net for the year ended December 29, 2019. For additional information related to the Company’s derivative financial 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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