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This excerpt taken from the HAS 10-K filed Feb 24, 2010. U.S.
and Canada
U.S. and Canada segment net revenues for the year ended
December 27, 2009 increased 2% to $2,447,943 from
$2,406,745 in 2008. The increase in net revenues in 2009 was
primarily due to increased revenues in the boys’ toys
category, primarily as a result of increased sales of
TRANSFORMERS and G.I. JOE products due to the theatrical
releases of TRANSFORMERS: REVENGE OF THE FALLEN in June
2009 and G.I. JOE: THE RISE OF COBRA in August 2009, as
well as increased sales of NERF products. Increased sales in the
boys’ toys category were partially offset by decreased
sales of STAR WARS, MARVEL and INDIANA JONES products. The
increase in U.S. and Canada segment net revenues for 2009
was also due to increased revenues in the preschool category
primarily resulting from higher sales of TONKA and PLAY-DOH
products, partially offset by decreased sales of PLAYSKOOL
products. Revenues from sales of PLAYSKOOL products declined
primarily as a result of decreased sales of ROSE PETAL COTTAGE
products which are no longer in the Company’s product line.
Revenues from the girls’ toys category decreased primarily
as a result of lower sales of BABY ALIVE and I-DOG products,
partially offset by sales of STRAWBERRY SHORTCAKE products which
were reintroduced to the Company’s line in the second
quarter of 2009. Although revenues from LITTLEST PET SHOP
products decreased slightly in 2009, sales of these products
remained a significant contributor to U.S. and Canada
segment net revenues in 2009. Net revenues in the games and
puzzles category decreased slightly in 2009, primarily due to
decreased sales of traditional board games, partially offset by
increased revenues from sales of MAGIC: THE GATHERING trading
cards. Net revenues in 2009 were also negatively impacted by
decreased sales of TOOTH TUNES products, which have been
discontinued in the Company’s product line.
U.S. and Canada operating profit increased to $380,580 in
2009 from $283,152 in 2008. Operating profit in 2009 was
positively impacted by approximately $3,100 due to the
translation of foreign currencies to the U.S. dollar.
U.S. and Canada gross profit increased in 2009 primarily as
a result of the increased revenues discussed above, lower
obsolescence charges, and a change in the mix of products sold,
primarily due to increased sales of entertainment-based products
in 2009 as compared to 2008. The increase in operating profit
for 2009 also reflects decreased selling, distribution and
administration expenses which primarily reflect lower shipping
and distribution costs as well as decreased marketing and sales
expenses. In addition, operating profit increased as a result of
decreased advertising expense.
U.S. and Canada segment net revenues for the year ended
December 28, 2008 increased 5% to $2,406,745 from
$2,293,742 in 2007. The impact of foreign currency translation
on U.S. and Canada segment net revenues in 2008 was
unfavorable and decreased net revenues by approximately $3,100.
The increase in net revenues in 2008 was primarily due to higher
revenues in the boys’ toys category, driven by increased
sales of STAR WARS and NERF products and sales of INDIANA JONES
products. Although revenues from TRANSFORMERS and MARVEL
products decreased in 2008 compared to 2007, as a result of the
significant sales recognized in the prior year due to the
theatrical releases of TRANSFORMERS in July 2007 and
SPIDER-MAN 3 in May 2007, these lines remained
significant contributors to U.S. and Canada segment net
revenues in 2008. The overall increase in segment net revenues
for 2008 was also due to increased revenues in
Table of Contents
the games and puzzles category as a result of increased sales of
DUEL MASTERS and TRIVIAL PURSUIT games and the impact of the
acquisition of Cranium, partially offset by decreased revenues
from plug and play games, as well as increased sales of products
in the preschool category. Revenues from the girls’ toys
category decreased primarily as a result of decreased sales of
I-DOG, and to a lesser extent, decreased revenues from MY LITTLE
PONY, FURREAL FRIENDS, and LITTLEST PET SHOP. Although revenues
from LITTLEST PET SHOP decreased slightly in 2008, sales of
these products remained a significant contributor to
U.S. and Canada segment net revenues in 2008. Decreases in
girls’ toys net revenues were partially offset by increased
sales as a result of the reintroduction of EASY-BAKE oven.
Revenues in 2008 were also negatively impacted by decreased
sales of TOOTH TUNES and POWER TOUR GUITAR, which are no longer
in the Company’s product line.
U.S. and Canada operating profit decreased to $283,152 in
2008 from $287,800 in 2007. Operating profit in 2008 was
negatively impacted by approximately $1,100 due to the
translation of foreign currencies to the U.S. dollar.
U.S. and Canada segment gross profits increased in dollars
but decreased as a percentage of net revenues in 2008 primarily
as a result of the increased promotional programs implemented by
the Company in the fourth quarter of 2008, including the
provision of sales allowances and markdowns, to address the weak
retail environment. The increase in gross profit in dollars was
more than offset by increased product development and sales and
marketing expenses related to investments the Company made in
both core brands and its digital initiative related to its
Wizards of the Coast subsidiary; increased amortization as a
result of the acquisition of Cranium and the purchase of
intellectual property rights related to TRIVIAL PURSUIT;
increased royalty expense; and increased shipping and
distribution costs, reflecting higher sales volume and higher
transportation costs.
These excerpts taken from the HAS 10-K filed Feb 25, 2009. U.S.
and Canada
U.S. and Canada segment net revenues for the year ended
December 28, 2008 increased 5% to $2,406,745 from
$2,293,742 in 2007. The impact of foreign currency translation
on U.S. and Canada segment net revenues in 2008 was
unfavorable and decreased net revenues by approximately $3,100.
The increase in net revenues in 2008 was primarily due to higher
revenues in the boys’ toys category, driven by increased
sales of STAR WARS products and sales of INDIANA JONES products.
Although revenues from TRANSFORMERS and MARVEL products
decreased in 2008 compared to 2007, as a result of the
significant sales recognized in the prior year due to the
theatrical releases of TRANSFORMERS in July 2007 and SPIDER-MAN
3 in May 2007, these lines remained significant contributors to
U.S. and Canada segment net revenues in 2008. The increase
in segment net revenues for 2008 was also due to increased
revenues in the games and puzzles category as a result of
increased sales of DUEL MASTERS and TRIVIAL PURSUIT games and
the impact of the acquisition of Cranium, partially offset by
decreased revenues from plug and play games. Revenues from the
tweens category also increased as a result of higher sales of
NERF products, partially offset by decreased sales of POWER TOUR
GUITAR, which is no longer in the Company’s product line,
as well as lower sales of I-DOG. Revenues from the preschool
category increased slightly as higher sales of PLAYSKOOL
products were partially offset by decreased sales of TONKA
products. Revenues from the girls’ toys category increased
slightly primarily as a result of of the reintroduction of
EASY-BAKE oven, partly offset by decreased revenues from MY
LITTLE PONY, FURREAL FRIENDS, and LITTLEST PET SHOP. Although
revenues from LITTLEST PET SHOP decreased slightly in 2008,
sales of these products remained a significant contributor to
U.S. and Canada segment net revenues in 2008. Revenues in
2008 were also negatively impacted by decreased sales of TOOTH
TUNES.
Table of Contents
U.S. and Canada operating profit decreased to $283,152 in
2008 from $287,800 in 2007. Operating profit in 2008 was
negatively impacted by approximately $1,100 due to the
translation of foreign currencies to the U.S. dollar.
U.S. and Canada segment gross profits increased in dollars
but decreased as a percentage of net revenues in 2008 primarily
as a result of the increased promotional programs implemented by
the Company in the fourth quarter of 2008, including the
provision of sales allowances and markdowns, to address the weak
retail environment. The increase in gross profit in dollars was
more than offset by increased product development and sales and
marketing expenses related to investments the Company is making
in both core brands and its digital initiative related to its
Wizards of the Coast subsidiary; increased amortization as a
result of the acquisition of Cranium and the purchase of
intellectual property rights related to TRIVIAL PURSUIT;
increased royalty expense; and increased shipping and
distribution costs, reflecting higher sales volume and higher
transportation costs.
U.S. and Canada segment net revenues for the year ended
December 30, 2007 increased 15% to $2,293,742 from
$1,997,141 in 2006. The impact of foreign currency translation
on U.S. and Canada segment net revenues in 2007 was
favorable, due to the strength of the Canadian dollar, and
increased net revenues by approximately $4,500. The increase was
due primarily to increased revenues in the boys’ toys
category driven by sales of MARVEL and TRANSFORMERS products due
to the theatrical releases of SPIDER-MAN 3 in May 2007 and
TRANSFORMERS in July 2007. Although STAR WARS product sales
declined in 2007 from 2006, sales of these products were a
significant contributor to boys’ toys revenues in 2007.
Revenues in the girls’ toys category increased as a result
of higher sales of LITTLEST PET SHOP and FURREAL FRIENDS
products as well as higher revenues from the BABY ALIVE line
which was reintroduced in the second quarter of 2006. To a
lesser extent, revenues in the girls’ toys category were
positively impacted by increased shipments of MY LITTLE PONY
products. Girls’ toys revenues were negatively impacted by
decreased sales of EASY-BAKE oven products due to the recall of
the product in July of 2007. Revenues from the preschool
category decreased slightly in 2007. Revenue from games and
puzzles decreased slightly due to lower revenues from trading
card and plug and play games partially offset by increased sales
of traditional board games. Revenues from the tweens category
decreased as a result of lower sales of electronic products such
as VIDEONOW, ZOOMBOX and I-DOG partially offset by increased
sales of NERF products. Revenues in 2007 were also positively
impacted by increased sales of TOOTH TUNES.
U.S. and Canada operating profit increased to $287,800 in
2007 from $254,502 in 2006. Operating profit in 2007 was
positively impacted by approximately $1,300 due to the
translation of foreign currencies to the U.S. dollar. The
increase in operating profit was primarily the result of higher
gross profits resulting from the higher revenues discussed
above. Although U.S. and Canada gross profit increased as a
result of higher revenues, this increase in gross profit was
negatively impacted by approximately $10,400 of charges recorded
in the second quarter of 2007 related to the July 2007 EASY-BAKE
oven recall. The increase in gross profit was also partially
offset by higher royalty expense as the result of the increased
sales of MARVEL and TRANSFORMERS movie-related products.
Operating profit was also negatively impacted by higher
advertising expense as well as higher selling and distribution
costs related to the increased sales volume. In addition,
U.S. and Canada operating profit included increased
investment spending in an online initiative of the
Company’s Wizards of the Coast operation.
U.S. and Canada U.S. and Canada segment net revenues for the year ended December 28, 2008 increased 5% to $2,406,745 from $2,293,742 in 2007. The impact of foreign currency translation on U.S. and Canada segment net revenues in 2008 was unfavorable and decreased net revenues by approximately $3,100. The increase in net revenues in 2008 was primarily due to higher revenues in the boys’ toys category, driven by increased sales of STAR WARS products and sales of INDIANA JONES products. Although revenues from TRANSFORMERS and MARVEL products decreased in 2008 compared to 2007, as a result of the significant sales recognized in the prior year due to the theatrical releases of TRANSFORMERS in July 2007 and SPIDER-MAN 3 in May 2007, these lines remained significant contributors to U.S. and Canada segment net revenues in 2008. The increase in segment net revenues for 2008 was also due to increased revenues in the games and puzzles category as a result of increased sales of DUEL MASTERS and TRIVIAL PURSUIT games and the impact of the acquisition of Cranium, partially offset by decreased revenues from plug and play games. Revenues from the tweens category also increased as a result of higher sales of NERF products, partially offset by decreased sales of POWER TOUR GUITAR, which is no longer in the Company’s product line, as well as lower sales of I-DOG. Revenues from the preschool category increased slightly as higher sales of PLAYSKOOL products were partially offset by decreased sales of TONKA products. Revenues from the girls’ toys category increased slightly primarily as a result of of the reintroduction of EASY-BAKE oven, partly offset by decreased revenues from MY LITTLE PONY, FURREAL FRIENDS, and LITTLEST PET SHOP. Although revenues from LITTLEST PET SHOP decreased slightly in 2008, sales of these products remained a significant contributor to U.S. and Canada segment net revenues in 2008. Revenues in 2008 were also negatively impacted by decreased sales of TOOTH TUNES.
Table of ContentsU.S. and Canada operating profit decreased to $283,152 in 2008 from $287,800 in 2007. Operating profit in 2008 was negatively impacted by approximately $1,100 due to the translation of foreign currencies to the U.S. dollar. U.S. and Canada segment gross profits increased in dollars but decreased as a percentage of net revenues in 2008 primarily as a result of the increased promotional programs implemented by the Company in the fourth quarter of 2008, including the provision of sales allowances and markdowns, to address the weak retail environment. The increase in gross profit in dollars was more than offset by increased product development and sales and marketing expenses related to investments the Company is making in both core brands and its digital initiative related to its Wizards of the Coast subsidiary; increased amortization as a result of the acquisition of Cranium and the purchase of intellectual property rights related to TRIVIAL PURSUIT; increased royalty expense; and increased shipping and distribution costs, reflecting higher sales volume and higher transportation costs. U.S. and Canada segment net revenues for the year ended December 30, 2007 increased 15% to $2,293,742 from $1,997,141 in 2006. The impact of foreign currency translation on U.S. and Canada segment net revenues in 2007 was favorable, due to the strength of the Canadian dollar, and increased net revenues by approximately $4,500. The increase was due primarily to increased revenues in the boys’ toys category driven by sales of MARVEL and TRANSFORMERS products due to the theatrical releases of SPIDER-MAN 3 in May 2007 and TRANSFORMERS in July 2007. Although STAR WARS product sales declined in 2007 from 2006, sales of these products were a significant contributor to boys’ toys revenues in 2007. Revenues in the girls’ toys category increased as a result of higher sales of LITTLEST PET SHOP and FURREAL FRIENDS products as well as higher revenues from the BABY ALIVE line which was reintroduced in the second quarter of 2006. To a lesser extent, revenues in the girls’ toys category were positively impacted by increased shipments of MY LITTLE PONY products. Girls’ toys revenues were negatively impacted by decreased sales of EASY-BAKE oven products due to the recall of the product in July of 2007. Revenues from the preschool category decreased slightly in 2007. Revenue from games and puzzles decreased slightly due to lower revenues from trading card and plug and play games partially offset by increased sales of traditional board games. Revenues from the tweens category decreased as a result of lower sales of electronic products such as VIDEONOW, ZOOMBOX and I-DOG partially offset by increased sales of NERF products. Revenues in 2007 were also positively impacted by increased sales of TOOTH TUNES. U.S. and Canada operating profit increased to $287,800 in 2007 from $254,502 in 2006. Operating profit in 2007 was positively impacted by approximately $1,300 due to the translation of foreign currencies to the U.S. dollar. The increase in operating profit was primarily the result of higher gross profits resulting from the higher revenues discussed above. Although U.S. and Canada gross profit increased as a result of higher revenues, this increase in gross profit was negatively impacted by approximately $10,400 of charges recorded in the second quarter of 2007 related to the July 2007 EASY-BAKE oven recall. The increase in gross profit was also partially offset by higher royalty expense as the result of the increased sales of MARVEL and TRANSFORMERS movie-related products. Operating profit was also negatively impacted by higher advertising expense as well as higher selling and distribution costs related to the increased sales volume. In addition, U.S. and Canada operating profit included increased investment spending in an online initiative of the Company’s Wizards of the Coast operation. | EXCERPTS ON THIS PAGE:
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