Slide 1: Third Quarter 2013 Snapshot
Third Quarter 2013 Snapshot Revenues, Operating Profit and Earnings Per Share Increasein the Third Quarter 2013 Q3 Net revenues $1.37 billion, up 2% year-over-year International Segment up 11% Emerging markets continue to post strong growth: Up 22% year-over-year Entertainment and Licensing up 13% G
Slide 2: Third Quarter 2013 Major Expense Items (as adjusted)
Third Quarter 2013 Major Expense Items (as adjusted*) ($ millions, unaudited) 2013 2012 %Change YOY % of Q3 2013 Revenue Notes Cost of Sales $569 $586 -3.1% 41.5% Product mix; lower manufacturing costs Royalties $87 $89 -2.7% 6.3% Lower revenues from licensed properties Product Development $59 $48 2
Slide 3: Third Quarter 2013 Operating Profit
Third Quarter 2013 Operating Profit -20% +4% Operating profit adversely impacted by arbitration award.Underlying operating profitability improved. Adjusted operating profit margin increased to 19.0% in Q3 2013 compared to 18.6% in Q3 2012 * Q3 2013 excludes $61.3 million pre-tax restructuring, parti
Slide 4: Adjusted Q3 2013 net earnings of $173M or $1.31 per diluted share
Adjusted 2013 net earnings of $173M or $1.31 per diluted share Excludes pre-tax arbitration award charges of $75.5M, or $0.50 per diluted share Excludes pre-tax restructuring and partial pension settlement charges of $4.1M, or $0.03 per diluted share Excludes favorable tax adjustment of $23.6 millio
Slide 5: Income Statement
Third Quarter Income Statement ($ millions, unaudited) Sept. 29, 2013 Sept. 30, 2012 Net Revenues $ 1,370 $1,345 Cost of Sales 569 586 Royalties 144 89 Product Development 59 48 Advertising 136 135 Amortization of Intangibles 14 13 Program Production Cost Amortization 18 13 Selling, Distribution & A
Slide 6: September Balance Sheets
September Balance Sheets ($ millions, unaudited) Sept. 29, 2013 Sept. 30, 2012 Cash and Cash Equivalents $ 589 $ 697 Accounts Receivable 1,215 1,196 Inventories 447 463 Other Current Assets 346 263 Total Current Assets $ 2,597 $ 2,619 Property, Plant & Equipment, Net 231 217 Other Assets 1,762 1,610
Slide 7: Operating Profit, Excluding Restructuring, Pension Settlement and Arbitration Charges
Supplemental Financial Data Third Quarter Operating Profit, Excluding Restructuring, Pension Settlement and Arbitration Award Charges ($ thousands, unaudited)Quarter Ended September 29, 2013 As Reported Less Restructuring, Pension Settlement and Arbitration Award Charges Excluding Restructuring, Pen
Slide 8: Nine Months Ended Operating Profit Reconciliation
Supplemental Financial Data ($ thousands, unaudited)Nine Months Ended September 29, 2013 As Reported Less Restructuring, Pension Settlement and Arbitration Award Charges Excluding Restructuring, Pension Settlement and Arbitration Award Charges % Net Revenues Net Revenues $ 2,800,384 $ - $ 2,800,384
Slide 9: Restructuring, Pension Settlement and Arbitration Charges by Segment
Supplemental Financial Data Quarter Ended Quarter Ended Nine Months Ended Nine Months Ended ($ thousands, unaudited) Sept. 29, 2013 Sept. 30, 2012 Sept. 29, 2013 Sept. 30, 2012 U.S. and Canada Segment $ - $ - $ - $ 2,444 International Segment - - - 1,628 Entertainment and Licensing Segment - - 1,729
Slide 10: Net Earnings and EPS Excluding Charges and Tax Benefit
Supplemental Financial Data Net Earnings and EPS Excluding Restructuring Charges, Pension Settlement Charges, Arbitration Award Charges and Benefit from Settlement of Tax Exams Quarter Ended Quarter Ended Quarter Ended Quarter Ended ($ thousands, except per share amounts, unaudited) Sept. 29, 2013 D