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Table of Contents
Depreciation and amortization expense decreased for the six months ended June 30, 2015 compared to the same period in 2014 due to a
decrease in the amortization of acquisition related intangible assets.
Other operating expenses. net includes restructuring. Refer to note 3 "Restructuring" to our unaudited consolidated financial statements
included elsewhere in this prospectus for details regarding restructuring charges and our restructuring program. Pursuant to our recently announced
expense management initiative, we are seeking to achieve $200 million in annualized savings by mid-2016. We expect to incur $75 million of
restructuring charges of which we incurred $20 million during the six months ended June 30, 2015, related to severance costs. The first half of
2015 did not include any meaningful savings as a result of this program.
Interest income (expense)
Six morn It ended June 30,
fin mallow
2015
2014
Ferretti Change
Interest income
S
2
$
7
(71)%
Interest expense
(813)
(927)
(12)%
Interest income decreased for the six months ending June 30, 2015 compared to the same period in 2014 due to liquidation of short-temi
investments during the first quarter of 2015.
Interest expense decreased for the six months ending June 30, 2015 compared to the same period in 2014 due to lower outstanding debt
balances as a result of debt extinguishments, lower interest rates as a result of debt exchanges and refinancing, and lower financing fees
amortization. Refer to note 5 "Borrowings" to our unaudited consolidated financial statements included elsewhere in this prospectus for additional
information.
Loss on debt extinguishment
We incurred a $3 million loss on the extinguishment of debt during the first half of 2014.
Other income (expense)
Six months ended June 30,
(In minions)
2015
2014
Investment gains
$
—
$
89
Derivative financial instruments logs...
(16)
(4)
Divestiltuts. net gains
3
1
Non-operating foreign currency gains (losses)
24
(3)
Other income (expense)
$
11
$
83
Investmeiu gains in the six months ended June 30, 2014 relate to the sale of our 30% minority interest in EFS resulting in a pretax gain
of $89 million.
Derivative financial instruments losses increased for the six months ending June 30, 2015 compared to the same period in 2014 due to
the fair value adjustments on our interest rate swaps and cross currency swaps that are not designated as accounting hedges.
Non-operating foreign currency gains and (losses) for the six months ended June 30.2015 and 2014 relate to currency translations on
our euro-denominated debt and our intercompany loans. The gain in the six months ended June 30, 2015 was driven by the U.S. dollar
strengthening 8% against the euro.
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