Revenues from the All Other segment for the quarter ended December 31, 2015 were $3.4 million compared to $5.2 million in the prior-year period and gross profit was $2.7 million compared to a loss of $(4.0) million for the quarter ended December 31, 2014.  Gross profit for the quarter ended December 31, 2014 included the write-off of capitalized costs in the amount of $5.4 million.

For the quarter ended December 31, 2015, DWA posted adjusted^(a) operating income of $56.5 million. The increase in revenues and segment gross profit were partially offset by an increase in adjusted^(a) general and administrative expenses. The increase in adjusted^(a) general and administrative costs in the quarter ended December 31, 2015 was primarily driven by a $25.0 million increase in incentive and stock-based compensation costs, as well as an increase of $1.5 million related to the growth and expansion of the AwesomenessTV business. Operating income in the prior-year period included a $6.8 million benefit associated with a reduction in the fair value of the contingent consideration liability related to our acquisition of AwesomenessTV. Reported operating income for the quarter ended December 31, 2015, inclusive of restructuring-related charges, was $50.4 million.

Adjusted^(a) net income attributable to DWA for the quarter ended December 31, 2015 was $48.1 million, or adjusted^(a) income of $0.55 per diluted share. During the fourth quarter, the Company recorded an income tax benefit of $2.4 million, or an effective rate of (6.1)%.  Combined with a decrease in income tax benefit payable to former stockholder of $3.2 million, results in a combined effective tax rate of (14.3)% for the quarter. Reported net income attributable to DWA for the quarter ended December 31, 2015 was $42.1 million, or $0.48 per diluted share.

Full Year Review:
DWA's revenues for the year ended December 31, 2015 increased 33.8% to $915.9 million compared to $684.6 million in the prior-year period. The increase was driven by year-over-year growth across all core business segments.

Revenues for the year ended December 31, 2015 from the Feature Film segment increased to $520.1 million, primarily due to higher revenue from prior-year theatrical releases and contributions from the Library. Included in the results is a one-time benefit of $7.8 million related to recoveries from previously established home entertainment reserves related to sales through a former distributor. Segment gross profit increased to $190.5 million for the year ended December 31, 2015 compared to a loss of $(89.4) million in the prior-year period. In 2014, Feature Film segment gross profit was impacted by $259.7 million in charges, including restructuring-related charges totaling $163.0 million, as well as impairment charges totaling $96.7 million, primarily related to the performance of The Penguins of Madagascar and Mr. Peabody and Sherman.

Revenues from the Television Series and Specials segment for the year ended December 31, 2015 increased 121.5% to $228.1 million, due to a significantly higher number of episodes delivered under our episodic content licensing arrangements. Segment gross profit also increased to $84.5 million in 2015, up from $6.7 million in the prior year. The increase was primarily driven by higher revenue and favorable amortization rates associated with our episodic series and holiday specials, partially offset by up-front marketing costs associated with the launch of our new television series. Gross profit in the prior-year period was negatively impacted by write-downs of capitalized film costs totaling $13.3 million, primarily due to revisions in estimated future revenues for certain television specials, as well as higher than expected returns of seasonal and newly-released home entertainment product and increased selling costs related to our Classic Media properties. 

Revenues from the Consumer Products segment in the year ending December 31, 2015 increased to $86.5 million, from $64.8 million in the prior year. The increase was primarily driven by revenues earned from new and extended location based entertainment license arrangements and retail development initiatives in 2015, as well as merchandise licensing arrangements. For the year ended December 31, 2015, segment gross profit increased to $29.9 million, from $23.7 million in the prior year due to higher revenues, partially offset by a one time expense of $7.0 million related to our retail development initiatives. Gross profit for the year ended December 31, 2014 was impacted by  impairment charges totaling $2.4 million, which were primarily related to The Penguins of Madagascar.

Beginning in the quarter ending March 31, 2016, DWA plans to change the method by which intellectual property costs are charged to the Consumer Products segment to provide better comparability to peers, be more in line with the method used in the Television Series and Specials segment and minimize the volatility of the Consumer Products segment profitability. As a result, the Consumer Products Segment will no longer bear amortization of capitalized production costs for the use of Film and TV intellectual property. Instead, the Consumer Products segment will be charged a royalty fee which will compensate the originating segment for the use of intellectual property. There will be no change to DWA's Consolidated financials, as DWA's Ultimate revenues and the amortization of capitalized production costs remain unchanged. This methodology will impact segment reporting only.

Revenues for the year ended December 31, 2015 from the Company's New Media segment increased to $72.8 million, from $49.0 million in the prior year. This increase was primarily attributable to revenue generated from licensing and distribution of content, and to a lesser extent, advertising, brand sponsorship and talent management arrangements. In the prior year, the Company reported certain advertising and talent management revenues in this segment on a "gross" basis rather than on a "net" basis.  For comparative purposes, if the New Media segment's revenues had been reported on a "net" basis during the year ended December 31, 2014, revenues for the year ended December 31, 2015 would reflect an increase of approximately 84% compared with the prior year. Segment gross profit for year ended December 31, 2015, which is not affected by this item, was $41.1 million, compared to $17.9 million during the year ended December 31, 2014, primarily due to higher revenue contributions from the licensing and distribution of content, as well as reduced amortization of intangible assets.

Revenues from the All Other segment for the year ended December 31, 2015 were $8.4 million compared to $14.3 million in the prior year. Gross profit was $5.9 million compared to a loss of $(5.0) million for the year ended December 31, 2014.  Gross profit for the year ended December 31, 2014 included the write-off of capitalized costs in the amount of $5.4 million.

For the year ended December 31, 2015, DWA posted adjusted^(a) operating income of $78.8 million. The increase in revenues and segment gross profit was partially offset by an increase in adjusted^(a) general and administrative expenses. The increase in adjusted^(a) general and administrative costs in the current year was driven by a $37.1 million increase in incentive and stock-based compensation costs and a $16.9 million increase in costs incurred to support the growth and expansion of the AwesomenessTV business. Operating income in the prior year included a $16.5 million benefit associated with a reduction in the fair value of the contingent consideration liability related to our acquisition of AwesomenessTV.  The reported operating income for the year ended December 31, 2015, inclusive of restructuring-related charges, was $16.4 million.

Adjusted^(a) net income attributable to DWA for the year ended December 31, 2015 was $7.6 million, or $0.09 per share. Adjusted net income reflects higher interest expense related to a lease financing obligation associated with the Company's headquarters as well as a decrease in the amount of interest that could be capitalized during 2015. Adjusted net income for the year ended December 31, 2015 also includes non-cash charges totaling $11.9 million in other expense, net that are attributable to certain investments that were deemed to not be recoverable. Additionally, during the year ended December 31, 2015, DWA recorded income tax expense of $21.9 million , which includes expense related to the Company's tax sharing agreement with former stockholder. As a result, the Company had a combined effective tax rate of (68.4)% for the year ended December 31, 2015. Reported net loss attributable to DWA for the year ended December 31, 2015 was $(54.8) million , or $(0.64) per share.