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EFTA01382642

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8-1 /A 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 forei

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