UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 11-K
(MARK ONE)
\X\ ANNUAL REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 FOR THE FISCAL YEAR ENDED DECEMBER 31, 2009.
OR
\ \ TRANSITION REPORT PURSUANT TO SECTION 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
COMMISSION FILE NUMBER 1-6682
A. FULL TITLE OF THE PLAN AND THE ADDRESS OF THE PLAN, IF DIFFERENT
FROM THAT OF ISSUER NAMED BELOW:
HASBRO, INC. RETIREMENT SAVINGS PLAN
B. NAME OF ISSUER OF THE SECURITIES HELD PURSUANT TO THE PLAN AND
THE ADDRESS OF ITS PRINCIPAL EXECUTIVE OFFICE:
HASBRO, INC.
1027 NEWPORT AVENUE
PAWTUCKET, RI 02862-1059
REQUIRED INFORMATION
I. FINANCIAL STATEMENTS
The following Plan financial statements and schedule prepared in accordance
with the financial reporting requirements of the Employee Retirement Income
Security Act of 1974 are filed herewith, as permitted by Item 4 of Form 11-K:
Report of Independent Registered Public Accounting Firm
Statements of Net Assets Available for Plan Benefits as of
December 31, 2009 and 2008
Statements of Changes in Net Assets Available for Plan Benefits for
the years ended December 31, 2009 and 2008
Notes to Financial Statements
Supplemental Schedule:
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
Other schedules are omitted as the required information is not applicable.
II. EXHIBITS
23 Consent of Independent Registered Public Accounting Firm
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Committee appointed by the Board of Directors of Hasbro, Inc. to administer the
Plan has duly caused this Annual Report on Form 11-K to be signed on its behalf
by the undersigned hereunto duly authorized.
Hasbro, Inc. Retirement Savings Plan
------------------------------------
Date: June 25, 2010 /s/ Deborah Thomas
------------- ------------------------------------
Deborah Thomas
Chief Financial Officer
Report of Independent Registered Public Accounting Firm
The Plan Administrator
Hasbro, Inc. Retirement Savings Plan:
We have audited the accompanying statements of net assets available for plan
benefits of the Hasbro, Inc. Retirement Savings Plan (the Plan) as of
December 31, 2009 and 2008, and the related statements of changes in net assets
available for plan benefits for the years then ended. These financial
statements are the responsibility of the Plan's management. Our responsibility
is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the standards of the Public Company
Accounting Oversight Board (United States). Those standards require that we
plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in
the financial statements. An audit also includes assessing the accounting
principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in
all material respects, the net assets available for plan benefits of the Plan
as of December 31, 2009 and 2008, and the changes in net assets available for
plan benefits for the years then ended, in conformity with U.S. generally
accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic
financial statements taken as a whole. The supplemental Schedule H, Line 4i -
Schedule of Assets (Held at End of Year) as of December 31, 2009 is presented
for the purpose of additional analysis and is not a required part of the basic
financial statements but is supplementary information required by the
Department of Labor's Rules and Regulations for Reporting and Disclosure under
the Employee Retirement Income Security Act of 1974. The supplemental schedule
is the responsibility of the Plan's management. The supplemental schedule has
been subjected to the auditing procedures applied in the audits of the basic
financial statements and, in our opinion, is fairly stated in all material
respects in relation to the basic financial statements taken as a whole.
/s/ KPMG LLP
Providence, Rhode Island
June 25, 2010
HASBRO, INC. RETIREMENT SAVINGS PLAN
Statements of Net Assets Available for Plan Benefits
December 31, 2009 and 2008
2009 2008
---- ----
Assets:
Cash and cash equivalents $ 2,209,005 2,972,030
Investments, at fair value 303,470,111 222,863,954
Wrapper contracts, at fair value - 101,978
----------- -----------
Total investments and cash (note 3) 305,679,116 225,937,962
----------- -----------
Receivables:
Loans to participants 6,134,693 5,349,883
Investment income - 186,168
Employer contributions 9,023,176 9,213,459
Due from brokers for securities sold 14,560 185,824
----------- -----------
Total receivables 15,172,429 14,935,334
----------- -----------
Total assets 320,851,545 240,873,296
----------- -----------
Liabilities:
Payables for securities purchased 173,171 200,247
Accrued expenses 130,052 112,171
----------- -----------
Total liabilities 303,223 312,418
----------- -----------
Net assets, reflecting investments at
fair value 320,548,322 240,560,878
Adjustment from fair value to contract
value for fully benefit-responsive
investment contracts (698,031) 2,036,852
----------- -----------
Net assets available for plan benefits $319,850,291 242,597,730
=========== ===========
See accompanying notes to financial statements.
HASBRO, INC. RETIREMENT SAVINGS PLAN
Statements of Changes in Net Assets Available for Plan Benefits
Years ended December 31, 2009 and 2008
2009 2008
----- -----
Changes in net assets attributed to:
Investment income (loss):
Net appreciation (depreciation) in
fair value of investments $ 54,161,582 (98,045,208)
Dividends and interest 5,022,509 6,493,608
----------- -----------
Total investment income (loss) (note 3) 59,184,091 (91,551,600)
----------- -----------
Contributions:
Rollovers 498,634 765,039
Employee contributions 14,793,228 15,249,665
Employer matching and other contributions 18,798,966 19,015,732
----------- -----------
Total contributions 34,090,828 35,030,436
----------- -----------
Transfer from other plan - 1,114,514
Termination, withdrawal and retirement
payments directly to participants (15,540,900) (23,768,134)
Administrative expenses (481,458) (409,596)
---------- -----------
Net increase (decrease) 77,252,561 (79,584,380)
Net assets available for plan benefits:
Beginning of year 242,597,730 322,182,110
------------ -----------
End of year $ 319,850,291 242,597,730
============ ===========
See accompanying notes to financial statements.
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2009 and 2008
(1) Description of Plan
The following brief description of the Hasbro, Inc. Retirement Savings Plan
(the Plan) is provided for general information purposes only. Participants
should refer to the Plan agreement for more complete information.
(a) General
The Plan is a defined contribution plan subject to the provisions of
the Employee Retirement Income Security Act of 1974 (ERISA) and is
available to substantially all domestic employees of Hasbro, Inc. and
certain subsidiaries (collectively the Company or Plan Administrator).
Participation in the Plan is voluntary and eligibility provisions
apply.
(b) Plan Merger and Transfer of Plan Assets
Hasbro, Inc. acquired Cranium, Inc. in January 2008. As a result, the
Cranium, Inc. 401(k) Plan was merged into the Hasbro, Inc. Retirement
Savings Plan on July 1, 2008. Assets totaling $1,114,514 were
transferred into the Plan as a result of the merger.
(c) Contributions
Eligible employees could contribute up to 50% of their eligible pay,
limited to an annual maximum of $16,500 and $15,500 in 2009 and 2008,
respectively. Contributions may be limited to less than the maximum
percentage of eligible pay to enable the Company to meet IRS
discrimination regulations. The Company makes a matching contribution,
except for Milton Bradley union employees, of 200% of the first 2% of
the participants' eligible pay that they contribute per pay period,
plus a 50% match of the next 4% of participants' eligible pay that they
contribute per pay period up to a maximum matching contribution of 6%
of a participant's eligible pay per pay period. For Milton Bradley
union employees, from January 1, 2008 through December 31, 2008 the
Company's matching contribution was 40%, up to a maximum of 6% of a
participant's eligible pay per pay period. From January 1, 2009 through
December 31, 2009 the Company's matching contribution for Milton
Bradley union employees was 45%, up to a maximum of 6% of a
participant's eligible pay per pay period.
All eligible employees at least age 50 by the end of the calendar year
are permitted to make additional pre-tax deferrals over and above the
otherwise applicable limits. These additional deferrals are called
"catch-up contributions." The Company does not make matching
contributions on the "catch-up contributions." Catch-up contributions
may be made up to an additional $5,500 and $5,000 for 2009 and 2008,
respectively.
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2009 and 2008
Effective at the end of December 2007, the Company froze defined
benefit pension benefits being accrued for its non-union employees in
the Hasbro, Inc. Pension Plan in the United States. These pension
benefits were replaced by additional employer contributions made to
this Plan beginning in 2008. These additional contributions for non-
union employees include an annual Company contribution equal to 3% of
an employee's eligible yearly pay. In addition, for eligible employees
who met certain requirements that were based on a combination of age
and years of vesting service in the pension plan as of December 31,
2007, the Company will make an annual transition contribution of
between 1% and 9% of an employee's eligible yearly pay. The annual
transition contribution is effective for Plan years 2008 through 2012.
During 2009 and 2008, these annual transition contributions totaled
$3,362,710 and $3,641,346, respectively.
(d) Vesting
All participants currently employed by the Company own, or are vested
in, 100% of both employee contributions and the Company's matching
contribution to the Plan. Participants become 100% vested in the
Company's other contributions, including the annual 3% Company
contribution and the annual transition contribution, after three years
of vesting service. Participants earn one year of vesting service for
each calendar year in which the participant has worked at least 1,000
hours.
(e) Forfeitures
The unvested portion of a terminated Participant's account is
forfeited and used to reduce future employer contributions. In 2009
forfeitures were $46,612. In 2008 there were no forfeitures.
(f) Payment of Benefits
Payments to participants will be paid upon retirement, disability, or
termination of employment. The account balance will be paid to a
beneficiary upon death of the participant. Participants in the Plan
have the option of receiving their benefit payments either in a lump
sum or in periodic installments. Participants, except for terminated
participants, may also make in-service withdrawals from their Pre-Tax
Savings Contribution Account in the event of a demonstrated severe
financial hardship as defined by the IRS Safe Harbor rules.
Participants who have reached age 59 1/2 may make in-service
withdrawals from their vested accounts in the Plan for any reason.
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2009 and 2008
(g) Participant Loans
The maximum loan available to each participant is the lesser of (1)
$50,000 reduced by the highest outstanding loan balance due from the
participant during the preceding twelve months, or (2) 50% of the
participant's vested account balance, reduced by the current
outstanding loan balance due from the participant. The minimum loan
amount available to participants is $500. Each loan shall bear a fixed
interest rate on the first day of the month (for each month) at prime
as published in the Wall Street Journal on the prior day. Repayment of
the loan must be made over a period not to exceed five years, unless it
is for the purchase of a primary residence, in which case the loan
period cannot exceed ten years.
(2) Summary of Accounting Policies
(a) Basis of Accounting
The preparation of financial statements in conformity with accounting
principles generally accepted in the United States of America requires
the Plan Administrator to make estimates and assumptions that affect
the reported amounts in the financial statements and accompanying
notes. Actual results could differ from those estimates. The
accompanying financial statements are presented on the accrual basis of
accounting. Benefits payable at year end are not accrued for as they
are considered to be a component of the net assets available for plan
benefits.
(b) Investments
Investments are stated at fair value. See Note 8 for a discussion of
the methods used to determine the fair value of investments held by the
Plan.
In 2009 and 2008 certain investment options offered by the Plan were
deemed to be fully benefit-responsive investment contracts. Accounting
standards require that these investments be reported at fair value.
However, contract value is the relevant measure to the Plan because it
is the amount that is available for Plan benefits. Accordingly, these
investments are reflected in the Statements of Net Assets Available for
Plan Benefits at their fair values, with corresponding adjustments to
reflect these investments at their contract values. See Note 3 for
further information on these investments.
Security transactions received prior to 4:00 pm Eastern time by the
Trustee are recognized on that business day. Transactions received
after 4:00 pm Eastern time are valued as of the next business day.
Interest income is recorded on the accrual basis and dividend income is
recorded on the ex-dividend date.
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2009 and 2008
Net appreciation (depreciation) in the fair value of investments
includes both realized and unrealized gains and losses.
(c) Participant Loans
Participant loans receivable are recorded at amortized cost.
(d) Contributions
Contributions from employees are accounted for when deducted from
employees' wages. The Company's matching contributions are accrued at
the time the employee's contributions are deducted. For the years ended
December 31, 2009 and 2008, employer and employee contributions for the
last pay period of the year were paid to the Plan prior to the Plan's
year end. The annual 3% company contribution and transition
contributions are paid to the Plan subsequent to the end of each Plan
year and are recorded as employer contributions receivable on the
Statement of Net Assets Available for Plan Benefits at year end.
(e) Payments of Benefits
Benefits are recorded when paid.
(f) Administrative Expenses
The Plan bears all costs and general expenses incurred with regard to
investment consulting, audit, legal and communication fees, other
professional fees, independent fund managers and the purchase and sale
of investments. Other costs of administration are paid for by the Plan
Administrator.
(3) Investment Information
Participants may elect to have their accounts invested in one or more of the
investment funds offered by the Plan. At December 31, 2009, investment funds
offered by the Plan include the following nationally traded mutual funds:
the Fidelity Growth Company Fund, the Fidelity Diversified International
Fund, the PIMCO Total Return Fund, the Dodge & Cox Stock Fund, the Vanguard
Small-Cap Index Fund, the Vanguard Mid-Cap Index Fund, the Dreyfus Limited
Term High Yield Bond Fund and the JP Morgan US Large Cap Core Plus Fund.
Investment funds offered by the Plan at December 31, 2009 also included the
following commingled funds: BTC S&P 500 Index, JPM SmartRetirement Income,
JPM SmartRetirement 2010, JPM SmartRetirement 2015, JPM SmartRetirement
2020, JPM SmartRetirement 2025, JPM SmartRetirement 2030, JPM
SmartRetirement 2035, JPM SmartRetirement 2040, JPM SmartRetirement 2045 and
JPM SmartRetirement 2050. The BTC S&P 500 Index Fund replaced the Spartan
U.S. Equity Index Fund on January 2, 2008, the JPM SmartRetirement Funds
replaced the Fidelity Freedom Funds on February 1, 2008, and the Dodge & Cox
Stock Fund replaced the Fidelity Equity Income Fund on August 1, 2008.
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2009 and 2008
Participants can elect to invest up to 25% of their contributions in the
Hasbro Stock Fund which is a unitized stock fund that invests in the stock
of Hasbro, Inc. and other short term investments designed to allow
participants to buy and sell without the usual trade settlement period for
individual stock transactions. Ownership is measured in units of the fund
instead of shares of stock. In addition, participants cannot elect to
reallocate their investment funds that would result in greater than 25% of
their account invested in the Hasbro Stock Fund. The fair value of the cash
and investments of the Hasbro Stock Fund was $6,639,518 as of December 31,
2009 and $4,873,876 as of December 31, 2008.
The Plan invests in fully benefit-responsive synthetic guaranteed investment
contracts ("synthetic GICs") as part of offering the JP Morgan Stable Asset
Fund investment option to participants. Participant contributions to this
fund are primarily used to purchase units of commingled funds, which are
invested in a high-quality fixed income portfolio.
The JP Morgan Stable Asset Fund enters into wrapper contracts with insurance
companies which provide a guarantee with respect to the availability of
funds to make distributions from this investment option. These contracts are
carried at contract value in the participants' accounts. The issuer of the
wrapper contracts is contractually obligated to repay the principal, as well
as a specified interest rate that is set on a quarterly basis. There are no
reserves against contract value for credit risk of the contract issuer or
otherwise.
To the extent that the underlying portfolio has unrealized and/or realized
losses, a positive adjustment is made when reconciling from fair value to
contract value under contract value accounting. As a result, the future
crediting rate may be lower over time than the current market rates.
Similarly, if the underlying portfolio generates unrealized and/or realized
gains, a negative adjustment is made when reconciling from fair value to
contract value and, in the future, the crediting rate may be higher than the
current market rates. The contracts cannot credit an interest rate that is
less than zero percent.
The JP Morgan Stable Asset Fund and the wrapper contracts purchased by that
fund are designed to pay all participants at contract value. However,
certain events limit the ability of the Plan to transact at contract value.
These events include but are not limited to premature termination of the
contracts by the Plan or Plan termination. The Plan Sponsor has not
expressed any intention to take either of these actions.
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2009 and 2008
The synthetic guaranteed investment contracts in the JP Morgan Stable Asset
Fund as of December 31, 2009 and 2008 are summarized below:
Major Investments Wrapper Adjustment
Credit at Contracts at to Contract
Rating Fair Value Fair Value Value
------ ------------ ------------ -------------
December 31, 2009
-----------------
Monumental Life
Insurance Co. AA- $ 26,805,660 - (349,016)
ING Life Insurance
and Annuity Co. A+ 26,805,580 - (349,015)
------------ ------- ---------
All Contracts $ 53,611,240 - (698,031)
============ ======= =========
December 31, 2008
-----------------
Monumental Life
Insurance Co. AA $ 24,352,256 50,989 1,018,426
ING Life Insurance
and Annuity Co. AA 24,352,236 50,989 1,018,426
------------ ------- ---------
All Contracts $ 48,704,492 101,978 2,036,852
============ ======= =========
Participant accounts in the JP Morgan Stable Asset Fund are credited with
interest at a fixed rate that is based on an agreed-upon formula as defined
in the contracts. The rate typically resets quarterly; however, the rate may
reset more frequently under certain circumstances. The primary variables
which could impact the future crediting rates include (1) the amount and
timing of participant contributions, (2) transfers and withdrawals into/out
of the contract, (3) the current yield of the assets underlying the
contract, (4) the duration of the assets underlying the contract and (5) the
existing difference between fair value of the securities and the contract
value of the assets within the insurance contract. The crediting rate of
security-backed contracts will track current market yields on a trailing
basis. The rate reset allows the contract value to converge with the fair
value of the underlying portfolio over time, assuming the portfolio
continues to earn the current yield for a period of time equal to the
current portfolio duration.
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2009 and 2008
The average yields earned by the entire JP Morgan Stable Asset Fund for the
years ended December 31, 2009 and 2008 were 4.17% and 6.67%, respectively.
The average yields earned by the JP Morgan Stable Asset Fund, adjusted to
reflect the actual interest rate credited to participants in the fund, for
the years ended December 31, 2009 and 2008 were 3.35% and 4.33%,
respectively.
In addition to the JP Morgan Stable Asset Fund described above, the
following table represents the carrying value of other investments which
were 5% or more of the Plan's net assets as of December 31, 2009 and
December 31, 2008:
2009 2008
------ ------
Fidelity Growth Company Fund $45,432,920 29,713,208
BTC S&P 500 Index 34,447,034 26,913,608
Fidelity Diversified International Fund 29,013,866 19,925,879
PIMCO Total Return Fund 27,241,809 19,874,282
Dodge & Cox Stock Fund 26,400,841 19,853,552
During 2009 and 2008, the Plan's investments (including gains and losses on
investments bought and sold, as well as held during the year) appreciated
(depreciated) in value by $54,161,582 and $(98,045,208), respectively, as
follows:
Year Ended December 31,
2009 2008
------ ------
Shares in registered investment companies $ 34,946,908 (70,920,497)
Units in common collective trusts 18,290,703 (27,658,855)
Hasbro Stock Fund 923,971 534,144
----------- -----------
$ 54,161,582 (98,045,208)
=========== ===========
(4) Related Party Transactions
Certain Plan investments are shares of mutual funds managed by Fidelity
Management and Research Company, an affiliate of the Trustee, and,
therefore, qualify as party-in-interest transactions. Additionally, the
Plan holds investments in shares of Hasbro, Inc. common stock. The Plan had
195,937 and 159,026 shares of Hasbro, Inc. common stock valued at
$6,281,740 and $4,638,788, respectively, as of December 31, 2009 and 2008.
These transactions qualify as exempt party-in-interest transactions.
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2009 and 2008
(5) Plan Termination
Upon termination of the Plan and trust, each Participant shall be entitled
to receive the vested amount standing to the credit of their account as of
the final valuation date. The Trustee shall make payments of such amounts
as directed by the Plan Administrator.
Although the Company has not expressed any intent to do so, it reserves the
right to terminate the Plan at any time subject to ERISA provisions.
(6) Risks and Uncertainties
The Plan provides for investments in various funds, which invest in equity
and debt securities and other investments. Such investments are exposed to
risks and uncertainties, such as interest rate risk, credit risk, economic
and political risks, regulatory changes, and foreign currency risk. In
addition, participants may elect to invest up to 25% of their contributions
in the Hasbro Stock Fund. The underlying performance of this fund is
dependent upon the performance of the Company and the market's evaluation
of such performance. The Plan's exposure to a concentration of credit risk
is subject to the Plan's investment funds selected by participants. These
risks and uncertainties could impact participants' account balances and the
amounts reported in the financial statements.
(7) Federal Income Taxes
The Internal Revenue Service issued a determination letter on January 21,
2003, which stated that the Plan and its underlying trust are designed in
accordance with applicable sections of the Internal Revenue Code (IRC), and
therefore, are exempt from federal income taxes. Although the Plan has been
amended since receiving the determination letter, the Plan Administrator
and the Plan's tax counsel believe that the Plan is designed and is
currently being operated in compliance with the applicable requirements of
the IRC.
(8) Fair Value Measurements
The Plan measures certain assets at fair value. The fair value hierarchy
consists of three levels: Level 1 fair values are valuations based on
quoted market prices in active markets for identical assets or liabilities
that the entity has the ability to access; Level 2 fair values are those
valuations based on quoted prices for similar assets or liabilities, quoted
prices in markets that are not active, or other inputs that are observable
or can be corroborated by observable data for substantially the full term
of the assets or liabilities; and Level 3 fair values are valuations based
on inputs that are supported by little or no market
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2009 and 2008
activity and that are significant to the fair value of the assets or
liabilities.
The Plan had the following assets measured at fair value in its Statements
of Net Assets Available for Plan Benefits:
Fair Value Measurements Using:
------------------------------
Quoted
Prices in
Active
Markets Significant
For Other Significant
Identical Observable Unobservable
Fair Assets Inputs Inputs
Value (Level 1) (Level 2) (Level 3)
-------- -------- --------- ----------
December 31, 2009
-----------------
Investments
-----------
Hasbro, Inc.
Common Stock $ 6,281,740 6,281,740 - -
Mutual Funds 158,152,289 158,152,289 - -
Commingled Funds 85,424,842 - 85,424,842 -
Synthetic GICs:
Cash and Cash
Equivalents 12,094 12,094 - -
U.S. Treasury Bonds 258,216 258,216 - -
Commingled Funds 53,340,930 - 53,340,930 -
----------- ----------- ----------- ---------
Total Synthetic
GICs 53,611,240 270,310 53,340,930 -
----------- ----------- ----------- ---------
Total Investments $303,470,111 164,704,339 138,765,772 -
=========== =========== =========== =========
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2009 and 2008
December 31, 2008
-----------------
Investments
-----------
Hasbro, Inc.
Common Stock $ 4,638,788 4,638,788 - -
Mutual Funds 106,834,748 106,834,748 - -
Commingled Funds 62,685,926 - 62,685,926 -
Synthetic GICs:
Cash and Cash
Equivalents 30,236 30,236 - -
U.S. Treasury Bonds 263,895 263,895 - -
Commingled Funds 48,410,361 - 48,410,361 -
Wrapper Contracts 101,978 - - 101,978
----------- ----------- ----------- ---------
Total Synthetic
GICs 48,806,470 294,131 48,410,361 101,978
----------- ----------- ----------- ---------
Total Investments $222,965,932 111,767,667 111,096,287 101,978
=========== =========== =========== =========
The following is a description of the valuation methodologies used for
assets measured at fair value. There have been no changes in the
methodologies used at December 31, 2009 and 2008.
Hasbro, Inc. Common Stock: Valued at the composite closing price reported
on the New York Stock Exchange.
Mutual Funds: Valued at the net asset value ("NAV") of shares held by the
plan at year-end.
Commingled Funds: Valued using the NAV which is quoted on a private market
that is not active; however, the unit price is based on underlying
investments which are traded on an active market.
U.S. Treasury Bonds: Valued at the closing price reported in the active
market in which the individual security is traded.
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2009 and 2008
Synthetic Guaranteed Investment Contracts: The synthetic GICs are comprised
of wrapper contracts and underlying investments as detailed in the table
above and described in Note 3. The fair value of the wrapper contracts
represents the difference between the replacement cost and actual cost of
the contracts and is calculated using a discounted cash flow model which
considers recent fee bids as determined by recognized dealers, an
appropriate discount rate and the duration of the underlying portfolio
securities. These inputs are considered unobservable inputs in that they
reflect the Plan's own assumptions about the inputs that market
participants would use in pricing the asset or liability. The Plan believes
that this is the best information available for use in the fair value
measurement. The underlying assets are valued as described above.
The following is a reconciliation of the beginning and ending balances of
the fair value measurements of the wrapper contracts which use significant
unobservable inputs (Level 3):
2009 2008
---- ----
Beginning Balance $ 101,978 -
Unrealized gains (losses) (101,978) 101,978
-------- -------
Ending Balance $ - 101,978
======== =======
(9) Reconciliation to Form 5500
The accompanying financial statements are presented on the accrual basis of
accounting and include certain accrued administrative expenses and employer
contributions receivable which are not accrued on the Form 5500.
The following is a reconciliation of net assets available for plan benefits
per the financial statements to the Form 5500 at December 31, 2009 and
2008.
2009 2008
------ ------
Per financial statements $ 319,850,291 242,597,730
Employer contributions receivable (9,023,176) (9,213,459)
Accrued administrative expenses 100,967 112,171
Adjustment from contract value to
fair value for fully-benefit
responsive investment contracts 698,031 (2,036,852)
------------ -----------
Per Form 5500 $ 311,626,113 231,459,590
=========== ===========
HASBRO, INC. RETIREMENT SAVINGS PLAN
Notes to Financial Statements
December 31, 2009 and 2008
The following is a reconciliation of the change in net assets available for
plan benefits per the financial statements to the Form 5500 at December 31,
2009 and 2008.
2009 2008
------ ------
Per financial statements $ 77,252,561 (79,584,380)
Prior year employer contributions receivable 9,213,459 -
Prior year accrued administrative expenses (112,171) -
Prior year adjustment from contract value to
fair value for fully-benefit responsive
investment contracts 2,036,852 -
Current year employer contributions receivable (9,023,176) (9,213,459)
Current year accrued administrative expenses 100,967 112,171
Current year adjustment from contract value to
fair value for fully-benefit responsive
investment contracts 698,031 (2,036,852)
----------- -----------
Per Form 5500 $ 80,166,523 (90,722,520)
=========== ===========
HASBRO, INC. RETIREMENT SAVINGS PLAN
Schedule H, Line 4i - Schedule of Assets (Held at End of Year)
Year ended December 31, 2009
Issuer Investment Description Fair Value
------ ----------------------- -----------
Mutual Funds
------------
Fidelity Growth Company Fund* 658,639 shares in registered $ 45,432,920 **
investment company
Fidelity Diversified 1,036,210 shares in registered 29,013,866 **
International Fund* investment company
PIMCO Total Return Fund 2,522,390 shares in registered 27,241,809 **
investment company
Dodge & Cox Stock Fund 274,608 shares in registered 26,400,841 **
investment company
Vanguard Small-Cap Index 444,134 shares in registered 12,213,677
Fund investment company
Vanguard Mid-Cap Index Fund 666,366 shares in registered 10,928,398
investment company
Dreyfus Limited Term 585,365 shares in registered 3,799,021
High Yield Bond Fund investment company
JPMorgan US Large Cap 171,714 shares in registered 3,121,757
Core Plus Fund investment company
Commingled Funds
----------------
BTC S&P 500 Index 929,494 units in common 34,447,034 **
collective trust
JPM SmartRetirement 2020 913,047 units in common 10,728,298
collective trust
JPM SmartRetirement 2030 701,743 units in common 8,006,890
collective trust
JPM SmartRetirement 2025 553,942 units in common 7,982,302
collective trust
JPM SmartRetirement 2015 661,359 units in common 7,678,377
collective trust
JPM SmartRetirement 2035 460,945 units in common 6,407,133
collective trust
JPM SmartRetirement 2010 318,863 units in common 3,727,513
collective trust
JPM SmartRetirement 2040 308,218 units in common 3,501,351
collective trust
JPM SmartRetirement 2045 105,390 units in common 1,447,002
collective trust
JPM SmartRetirement Income 103,640 units in common 1,194,966
collective trust
JPM SmartRetirement 2050 23,419 units in common 303,976
collective trust
Synthetic Guaranteed
Investment Contracts
----------------------
Cash and Cash Equivalents 12,094
Wrapper Contracts:
Monumental Life Insurance Co. Wrapper contract -
ING Life Insurance and
Annuity Co. Wrapper contract -
Commingled Funds:
JPMCB Intermediate Bond Fund 4,248,710 units in common 53,193,843 **
collective trust
JPMCB Liquidity Fund 147,087 units in common 147,087
collective trust
U.S. Treasury Bonds:
U.S. Treasury N/B 160,000 par; 2.375% interest; 162,119
Security ID: 912828JJ Maturity date: 08/31/2010
U.S. Treasury N/B 85,000 par; 2.000% interest; 86,009
Security ID: 912828JL Maturity date: 09/30/2010
U.S. Treasury N/B 10,000 par; 1.500% interest; 10,088
Security ID: 912828JP Maturity date: 10/31/2010
Common Stock
------------
Hasbro Stock Fund * 195,937 shares of Hasbro, Inc. 6,281,740
common stock
Cash and Cash Equivalents
-------------------------
Fidelity STIF * Cash equivalents 1,851,227
Hasbro Stock Fund * Cash 357,778
-----------
Investments and Cash $ 305,679,116
===========
Loans to Participants* 887 loans with interest rates
from 3.25% to 8.25% and maturity
dates from 2010 to 2019 $ 6,134,693
===========
*Party-in-interest
**Represents greater than 5% of Plan assets at December 31, 2009.
See accompanying report of independent registered public accounting firm.