This excerpt taken from the HAS 10-K filed Mar 9, 2005.
(2) Other Comprehensive Earnings
The Company's other comprehensive earnings for the years 2004, 2003 and 2002 consist of the following:
Reclassification adjustments from other comprehensive earnings to earnings in 2004, 2003 and 2002 were net of related income taxes of $1,724, $378 and $12,131, respectively. Reclassification adjustments for 2004 and 2002 include impairment charges relating to other than temporary decreases in the value of the Company's available-for-sale securities. In accordance with Hasbro's marketable securities accounting policy, in 2004 and 2002, as the result of the decline in the fair value of the Company's investment in Infogrames Entertainment SA common stock, the Company adjusted the basis of this investment and recorded a pretax charge to earnings in the amount of $8,988 and $42,902, respectively. The remainder of the reclassification adjustments in 2004 and 2002, as well as 2003 include net losses on cash flow hedging derivatives for which the related transaction has impacted earnings and was reflected in cost of sales.
The related tax benefit (expense) of other comprehensive earnings items was $(283), $(2,199), and $10,490 for the years 2004, 2003 and 2002, respectively.
Components of accumulated other comprehensive earnings at December 26, 2004 and December 28, 2003 are as follows: