Mattel 2014 Annual Report Download - page 35

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Results of Operations
2014 Compared to 2013
Consolidated Results
Net sales for 2014 were $6.02 billion, a 7% decrease, as compared to $6.48 billion in 2013, with an
unfavorable impact from changes in currency exchange rates of 2 percentage points. Net income for 2014 was
$498.9 million, or $1.45 per diluted share, as compared to net income of $903.9 million, or $2.58 per diluted
share, in 2013. Net income for 2014 was negatively impacted by lower sales volume, lower gross margins, and
higher other selling and administrative expenses, partially offset by lower income taxes.
The following table provides a summary of Mattel’s consolidated results for 2014 and 2013 (in millions,
except percentage and basis point information):
For the Year Year/Year
Change2014 2013
Amount
% of Net
Sales Amount
% of Net
Sales %
Basis Points
of Net Sales
Net sales .................................. $6,023.8 100.0% $6,484.9 100.0% –7% —
Gross profit ............................... $3,001.0 49.8% $3,478.9 53.6% –14% –380
Advertising and promotion expenses ............ 733.2 12.2 750.2 11.6 –2% 60
Other selling and administrative expenses ........ 1,614.1 26.8 1,560.6 24.1 3% 270
Operating income ........................... 653.7 10.9 1,168.1 18.0 –44% –710
Interest expense ............................ 79.3 1.3 78.5 1.2 1% 10
Interest (income) ........................... (7.4) –0.1 (5.6) –0.1 33% —
Other non-operating (income), net .............. (5.1) (3.9)
Income before income taxes .................. $ 586.9 9.7% $1,099.1 16.9% –47% –720
Sales
Net sales for 2014 were $6.02 billion, a 7% decrease, as compared to $6.48 billion in 2013, with an
unfavorable impact from changes in currency exchange rates of 2 percentage points.
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