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RELATED PARTY TRANSACTIONS
3 Months Ended
Mar. 31, 2016
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS
As discussed in Note 3, the Company has entered into a transition services agreement to provide certain services to New Avon, as well as a sublease for office space. In addition, New Avon is performing certain services for the Company under a similar transition service agreement. As a result of these agreements, the Company recorded $3.9 as a reduction of selling, general and administrative expenses associated with the agreements during the first quarter of 2016.
The Company also supplies product to New Avon as part of these transition services. The Company recorded revenues of $3.7 and gross profit of $0.5 associated with this supply arrangement.
The Company also issued standby letters of credit to the lessors of certain equipment, a lease for which was transferred to New Avon in connection with the separation of the business. The Company recorded a liability of $2.1 for the estimated value of such standby letters of credit. The recognition of the liability was included in the estimated loss on sale of the North America business in loss from discontinued operations, net of tax.
See Note 7, Series C Convertible Preferred Stock, for discussion of preferred shares issued to Cerberus Investor.