Consolidated net sales by product line for each of those respective periods are as follows (in millions):
|
| | | | | | | | | | | | |
| | Fiscal Quarter |
Product line net sales | | 2016 | | 2015 | | Increase / (Decrease) |
Hardware and home improvement products | | $ | 282.7 |
| | $ | 271.2 |
| | $ | 11.5 |
|
Consumer batteries | | 252.6 |
| | 240.2 |
| | 12.4 |
|
Global pet supplies | | 203.4 |
| | 120.6 |
| | 82.8 |
|
Small appliances | | 189.9 |
| | 223.8 |
| | (33.9 | ) |
Personal care products | | 168.8 |
| | 172.5 |
| | (3.7 | ) |
Global auto care | | 73.7 |
| | — |
| | 73.7 |
|
Home and garden control products | | 47.7 |
| | 39.5 |
| | 8.2 |
|
Total net sales to external customers | | $ | 1,218.8 |
| | $ | 1,067.8 |
| | $ | 151.0 |
|
Cost of consumer products and other goods sold / Consumer products segment gross profit. Consumer products segment gross profit, representing net consumer products sales minus consumer products cost of goods sold, for the Fiscal 2016 Quarter was $440.7 million compared to $370.2 million for the Fiscal 2015 Quarter. Gross profit margin for the Fiscal 2016 Quarter increased to 36.2% from 34.7% in the Fiscal 2015 Quarter primarily due to the margins contributed by the acquisition of AAG and a shift towards higher margin sales and continuing cost improvements.
Selling, acquisition, operating and general expenses. Selling, acquisition, operating and general expenses increased by $40.5 million, or 17.3%, to $274.6 million for the Fiscal 2016 Quarter, from $234.1 million for the Fiscal 2015 Quarter. The $27.3 million increase in selling expenses and $14.9 million increase in general and administrative expenses was mainly driven by the operations of AAG, European IAMS and Eukanuba and Salix coupled with increases in share-based compensation, partially offset by a decrease in restructuring and related charges related to business rationalization initiatives.
Amortization of intangibles. For the Fiscal 2016 Quarter, amortization of intangibles increased to $23.6 million from $20.5 million for the Fiscal 2015 Quarter. The increase was as a result of the additional definite lived intangible assets acquired during the 2015 fiscal year.
Insurance Segment
Presented below is a table that summarizes the results of operations of our Insurance segment and compares the amount of the change between the fiscal periods (in millions):
|
| | | | | | | | | | | |
| Fiscal Quarter |
| 2016 | | 2015 | | Increase / (Decrease) |
Insurance segment revenues | $ | (10.0 | ) | | $ | 34.5 |
| | $ | (44.5 | ) |
| | | | | |
Benefits and other changes in policy reserves | (12.4 | ) | | 26.4 |
| | (38.8 | ) |
Selling, acquisition, operating and general expenses | 2.4 |
| | 2.5 |
| | (0.1 | ) |
Total Insurance segment operating costs and expenses | (10.0 | ) | | 28.9 |
| | (38.9 | ) |
Operating income - Insurance segment | $ | — |
| | $ | 5.6 |
| | $ | (5.6 | ) |
For segment reporting purposes, at the inception date of the reinsurance transactions, Front Street elected to apply the fair value option to account for its funds withheld receivables, non-funds withheld assets and future policyholder benefits reserves related to its assumed reinsurance. For consolidated reporting, the results from Front Street’s assumed reinsurance business with FGL is reported on FGL’s historical basis. Upon completion of the FGL Merger, our consolidated results will reflect all reinsurance business on the fair value option.
Insurance segment revenues. For the Fiscal 2016 Quarter, Insurance segment revenues decreased $44.5 million to a loss of $10.0 million from a gain of $34.5 million for the Fiscal 2015 Quarter. The decrease in Insurance segment revenues was primarily due to unrealized losses on the underlying fixed maturity debt securities included in the funds withheld receivables during the Fiscal 2016 Quarter. These unrealized losses were due to market conditions with increasing risk-free rates and widening credit spreads resulting in generally lower valuations of the fixed maturity debt securities, primarily in the finance and energy, mining and metals sectors.
Benefits and other changes in policy reserves. For the Fiscal 2016 Quarter, benefits and other changes in policy reserves decreased $38.8 million, or 147.0%, to a benefit of $12.4 million, from an expense of $26.4 million for the Fiscal 2015 Quarter. The decrease
