Mattel 2015 Annual Report Download - page 27

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23
Finally, Mattel is currently on track to deliver at the high-end of the Funding Our Future two-year savings target of $250
million to $300 million, helping to maintain gross margins despite challenges to revenues.
Results of Operations
2015 Compared to 2014
Consolidated Results
Net sales for 2015 were $5.70 billion, a 5% decrease as reported, and a 2% increase in constant currency, as compared to
$6.02 billion in 2014. Net income for 2015 was $369.4 million, or $1.08 per diluted share, as compared to net income of $498.9
million, or $1.45 per diluted share, in 2014. Adjusted earnings per share, including discrete tax items, in 2015 was $1.31,
compared to adjusted earnings per share, including discrete tax items, of $1.71 in 2014. Adjusted earnings per share, including
discrete tax items, in 2015 was negatively impacted by unfavorable foreign exchange and lower gross profit, partially offset by
Funding Our Future savings.
The following table provides a summary of Mattel’s consolidated results for 2015 and 2014 (in millions, except
percentage and basis point information):
For the Year Year/Year
Change2015 2014
Amount
% of Net
Sales Amount
% of Net
Sales %
Basis Points
of Net Sales
Net sales $ 5,702.6 100.0% $ 6,023.8 100.0% -5%—
Gross profit $ 2,806.4 49.2% $ 3,001.0 49.8% -6% –60
Advertising and promotion expenses 717.9 12.6 733.2 12.2 -2%40
Other selling and administrative
expenses 1,547.6 27.1 1,614.1 26.8 -4%30
Operating income 540.9 9.5 653.7 10.9 -17% –140
Interest expense 85.3 1.5 79.3 1.3 8% 20
Interest (income) (7.2) -0.1 (7.4)-0.1 -2%—
Other non-operating (income), net (1.1) (5.1)
Income before income taxes $ 463.9 8.1% $ 586.9 9.7% -21% –160
Sales
Net sales for 2015 were $5.70 billion, a 5% decrease as reported, and a 2% increase in constant currency, as compared to
$6.02 billion in 2014.