Full Description

Hasbro, Inc. (Hasbro) is engaged in providing children’s and family leisure time and entertainment products and services, including the design, manufacture and marketing of games and toys. Its offerings include a variety of games, including traditional board, card, hand-held electronic, trading card, role-playing and digital versatile disc (DVD) games, as well as electronic learning aids and puzzles. Toy offerings include boys’ action figures, vehicles and playsets, girls’ toys, electronic toys, plush products, preschool toys and infant products, electronic interactive products, creative play and toy-related specialty products. Hasbro’s principal segments are United States (U.S.) and Canada and International. In addition, the Company’s Global Operations segment is responsible for arranging product manufacturing and sourcing for United States and Canada and International segments, and its other segment out-licenses Hasbro’s intellectual property to third parties on a worldwide basis.

The Company’s brands include PLAYSKOOL, TRANSFORMERS, MY LITTLE PONY, LITTLEST PET SHOP, TONKA, G.I. JOE, SUPER SOAKER, MILTON BRADLEY, PARKER BROTHERS, TIGER and WIZARDS OF THE COAST. In March 2008, the Company purchased all of the intellectual property rights related to the Trivial Pursuit brand from Horn Abbot Ltd. and Horn Abbot International Limited. In January 2008, the Company acquired Cranium, Inc., a developer and marketer of children’s and adult board games.

U.S. and Canada

The brands and products of this segment include STAR WARS, TRANSFORMERS, LITTLEST PET SHOP, NERF, PLAYSKOOL, MARVEL products, MONOPOLY, FURREAL FRIENDS, MAGIC: THE GATHERING, and BABY ALIVE. The products are organized into categories, which include games and puzzles, boys’ toys, girls’ toys, preschool toys, tween toys and other.

The games and puzzles category includes several brands, including MILTON BRADLEY, PARKER BROTHERS, TRIVIAL PURSUIT, CRANIUM, AVALON HILL and WIZARDS OF THE COAST. These brand portfolios consist of an assortment of games for children, tweens, families and adults. Core game brands include MONOPOLY, BATTLESHIP, GAME OF LIFE, SCRABBLE, CHUTES AND LADDERS, CANDY LAND, TROUBLE, MOUSETRAP, OPERATION, HUNGRY HUNGRY HIPPOS, CONNECT FOUR, TWISTER, YAHTZEE, CRANIUM, JENGA, SIMON, CLUE, SORRY!, RISK, BOGGLE, TRIVIAL PURSUIT and GUESS WHO?, as well as a line of puzzles for children and adults, including the BIG BEN and CROXLEY lines of puzzles. WIZARDS OF THE COAST offers trading card and role-playing games, including MAGIC: THE GATHERING and DUNGEONS & DRAGONS.

The Company’s boys’ toys include a range of core brands, such as G.I. JOE and TRANSFORMERS action figures and accessories, as well as entertainment-based licensed products based on movie, television and comic book characters, such as STAR WARS and MARVEL toys and accessories. In addition to marketing and developing action figures for traditional play, the Company also develops and markets products designed for collectors. Its girls’ toys include LITTLEST PET SHOP, MY LITTLE PONY, FURREAL FRIENDS and BABY ALIVE brands.

Hasbro’s pre-school toys category encompasses a range of products for infants and pre-schoolers in the various stages of development. Hasbro’s pre-school products include a portfolio of core brands marketed primarily under the PLAYSKOOL trademark. The PLAYSKOOL line includes products, such as MR. POTATO HEAD, WEEBLES, SIT ’N SPIN and GLOWORM, along with a line of infant toys, including STEP START WALK N’ RIDE, 2-IN-1 TUMMY TIME GYM and BUSY BALL POPPER. In addition, the Company’s pre-school category also includes the TONKA line of trucks and interactive toys and the PLAY-DOH brand. Hasbro’s tweens toys category generally markets products under the TIGER and NERF brands. The age group targeted by this category is generally 8 to 12 years old.

International

International segment sells a representative range of the toy and game products marketed in the United States and Canada segment, together with some items that are sold only internationally. These products are sold directly to retailers and wholesalers in most countries in Europe, Asia Pacific and Latin and South America, and through distributors in those countries where the Company has no presence. The geographic regions included in the International segment are Europe, Asia Pacific and Latin and South America, including Mexico. During the year ended December 28, 2008 (fiscal 2008), the Company expanded its operations in Brazil, China, Russia, the Czech Republic and Korea. During fiscal 2008, its international brands included LITTLEST PET SHOP, PLAYSKOOL, TRANSFORMERS, STAR WARS, MONOPOLY, MY LITTLE PONY and MARVEL.

Other Segments

In the Global Operations segment, the Company manufactures and sources production of substantially all of its toy and game products. The Company owns and operates manufacturing facilities in East Longmeadow, Massachusetts and Waterford, Ireland. Sourcing of its other production is done through unrelated manufacturers in various Far East countries, principally China, using a Hong Kong-based wholly owned subsidiary.

In its other segment, the Company generates revenue through the out-licensing worldwide of certain of its intellectual properties to third parties for promotional and merchandising uses in businesses, which do not compete directly with its own product offerings. During fiscal 2008, its other segment out-licensed the Company’s brands primarily in apparel, publishing, home goods and electronics, and certain brands in the digital area. The Company has a licensing alliance with Electronic Arts Inc. (EA), which provides EA with the worldwide rights to create digital games for all major platforms, including mobile phones, personal computers, and game consoles, such as XBOX, PLAYSTATION and WII, based on most of its toy and game intellectual properties.