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Jarden Corporation Annual Report 2014 19
Net Sales
Net sales for 2014 increased $931 million, or 12.7%, to $8.3 billion versus the prior year. Excluding the impact of the YCC Acquisition
and the Rexair Acquisition (approximately 8%), net sales on a currency-neutral basis increased approximately 6%, primarily due to
increased demand and sell-through in certain product categories, favorable weather conditions and increased seasonal demand
for certain product categories, expanded product offerings and increased demand internationally in certain product categories,
partially offset by lower seasonal demand and weakness in certain other product categories. Unfavorable foreign currency translation
accounted for a decrease in net sales of approximately 1%.
Net sales in the Branded Consumables segment increased $727 million, or 32.1%. Excluding the impact of the YCC Acquisition
(approximately 24%), net sales on a currency-neutral basis increased approximately 9%, primarily due to increased sales in certain
product categories in the home care, leisure and entertainment and safety and security businesses, including the food preservation
category, primarily due to increased point of sale and product demand; the rebuilding category whose sales were positively affected
by favorable weather conditions during the rst quarter of 2014 and increased seasonal demand; the safety and security category
whose sales increased sales in certain products in part due to increased demand at certain mass market retailers; and increased
seasonal demand in the Yankee Candle business. Unfavorable foreign currency translation accounted for a decrease in net sales of
approximately 1%.
Net sales in the Consumer Solutions segment increased $172 million, or 8.4%. Excluding the impact of the Rexair Acquisition
(approximately 2%), net sales on a currency-neutral basis increased approximately 8%. The increase is primarily due to increased
demand internationally, primarily in Latin America, which contributed to an increase in net sales of approximately 7%, largely due
to expanded product offerings in the small appliance category, increased point of sale and expanded distribution and an increase
in domestic net sales, which contributed to an increase in net sales of approximately 1%, largely due to increased orders in certain
small appliance and home environment product categories at certain mass market retailers. Unfavorable foreign currency translation
accounted for a decrease in net sales of approximately 2%.
Net sales in the Outdoor Solutions segment increased $14.8 million, or 0.5%. Net sales on a currency-neutral basis increased
approximately 2%. Net sales in the apparel, camping and outdoor and shing businesses provided an increase in net sales of
approximately 3%. The increase is primarily due to increased demand at certain mass market retailers, favorable weather conditions in
certain regions and increased demand internationally in certain businesses, primarily in Asia and Europe, due in part to improved point
of sale, new product offerings and improved economic conditions in certain regions. This increase was partially offset by decreased
sales in certain other businesses, primarily the winter sports business, largely due to lower seasonal demand in certain winter sports
categories, the timing of sales and weakness in certain product categories. Unfavorable foreign currency translation accounted for a
decrease in net sales of approximately 1%.
Net sales in the Process Solutions segment increased 5.9% on a period-over-period basis, primarily due to increased sales within each
of its business units.
Cost of Sales
Cost of sales for 2014 increased $413 million, or 7.9%, to $5.6 billion versus the prior year. The increase was primarily due to increased
sales (approximately $295 million) and the YCC Acquisition, partially offset by the cost of sales impact of improved margins
(approximately $66 million), a gain on the sale of an Asian manufacturing facility (approximately $39 million) and favorable foreign
currency translation (approximately $69 million). Cost of sales as a percentage of net sales for 2014 and 2013 was 68.2% and 71.3%,
respectively (67.9% and 70.0% for 2014 and 2013, respectively, excluding the charge for the elimination of manufacturer’s prot in
inventory). The improvement is in part due to product mix, which is largely due to the impact of the YCC Acquisition.
Selling, General and Administrative Costs
SG&A for 2014 increased $440 million, or 29.0%, to $2.0 billion versus the prior year. The change is primarily due to the impact of the
YCC Acquisition, an increase in Venezuela foreign exchange-related charges (approximately $146 million), an increase in acquisition-
related and other costs (approximately $32 million) and an increase in marketing and product development costs (approximately
$23 million) related to the Company’s investment in brand equity, partially offset by a decrease in stock-based compensation
(approximately $46 million). Favorable foreign currency translation (approximately $23 million) was essentially offset by other items.
Operating Earnings
Operating earnings for 2014 in the Branded Consumables segment increased $142 million, or 56.0%, versus the prior year, primarily due
to the YCC Acquisition, an increase in gross prot (approximately $130 million), mostly due to the gross prot impact of higher sales
and the period-over-period decrease in the purchase accounting adjustment for the elimination of manufacturer’s prot in inventory
(approximately $80 million), partially offset by an increase in SG&A (approximately $43 million) and an increase in the charges
recorded related to the impairment of intangible assets ($14 million). Operating earnings for 2014 in the Consumer Solutions segment
increased $59.6 million, or 22.1%, versus the prior year, primarily due to an increase in gross prot (approximately $40 million), mostly
due to the gross prot impact of higher sales and improved gross margins, and a gain on the sale of an Asian manufacturing facility
Management’s Discussion and Analysis
Jarden Corporation Annual Report 2014