Mattel 2014 Annual Report Download - page 40

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American Girl Segment
The following table provides a summary of Mattel’s gross sales by brand for the American Girl segment for
2014 and 2013:
For the Year
% Change2014 2013
(In millions, except percentage
information)
American Girl Segment:
American Girl Brands ................................................. $620.7 $632.5 –2%
Other Brands ........................................................ 24.6 26.3 –6%
Total American Girl Segment ..................................... $645.3 $658.8 –2%
Gross sales for the American Girl segment were $645.3 million in 2014, down $13.5 million or 2%, as
compared to $658.8 million in 2013, with no impact from changes in currency exchange rates. Of the 2%
decrease in American Girl Brands gross sales, 3% was due to lower sales of BeForever products. Cost of sales
increased 2% in 2014, as compared to a 2% decrease in net sales, primarily due to higher product and other costs.
Gross margins decreased as a result of efforts to improve consumer takeaway.
American Girl segment income decreased by 18% to $113.6 million in 2014, as compared to $138.0 million
in 2013, primarily due to lower gross profit and higher advertising and promotion expenses.
2013 Compared to 2012
Consolidated Results
Net sales for 2013 were $6.48 billion, a 1% increase, as compared to $6.42 billion in 2012, with an
unfavorable impact from changes in currency exchange rates of 1 percentage point. Net income for 2013 was
$903.9 million, or $2.58 per diluted share, as compared to net income of $776.5 million, or $2.22 per diluted
share, in 2012. As compared to 2012, net income for 2013 was positively impacted by lower other selling and
administrative expenses due to a 2012 litigation charge of $137.8 million, arising out of the litigation between
Mattel and MGA Entertainment, Inc. (the “Litigation Charge”), and higher gross margins. In 2012, the Litigation
Charge reduced net income by $87.1 million, or $0.25 per share.
The following table provides a summary of Mattel’s consolidated results for 2013 and 2012 (in millions,
except percentage and basis point information):
For the Year Year/Year
Change2013 2012
Amount
% of Net
Sales Amount
% of Net
Sales %
Basis Points
of Net Sales
Net sales .............................. $6,484.9 100.0% $6,420.9 100.0% 1%
Gross profit ............................ $3,478.9 53.6% $3,409.2 53.1% 2% 50
Advertising and promotion expenses ........ 750.2 11.6 717.8 11.2 5% 40
Other selling and administrative expenses .... 1,560.6 24.1 1,670.4 26.0 –7% (190)
Operating income ....................... 1,168.1 18.0 1,021.0 15.9 14% 210
Interest expense ........................ 78.5 1.2 88.8 1.4 –12% (20)
Interest (income) ........................ (5.6) –0.1 (6.8) –0.1 –19% —
Other non-operating (income), net .......... (3.9) (6.0)
Income before income taxes ............... $1,099.1 16.9% $ 945.0 14.7% 16% 220
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