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RELATED PARTY TRANSACTIONS (Tables)
3 Months Ended
Mar. 31, 2018
Related Party Transactions [Abstract]  
Schedule of Related Party Transactions
The following tables present the related party transactions with New Avon and affiliates of Cerberus. There are no other related party transactions. New Avon is majority-owned and managed by Cerberus NA. See Note 3, Investment in New Avon for further details.
 
 
Three Months Ended March 31,
 
 
2018
 
2017
Statement of Operations Data
 
 
 
 
Revenue from sale of product to New Avon(1)
 
$
5.9

 
$
8.0

Gross profit from sale of product to New Avon(1)
 
$
.4

 
$
.6

 
 
 
 
 
Cost of sales for purchases from New Avon(2)
 
$
.5

 
$
.8

 
 
 
 
 
Selling, general and administrative expenses:
 
 
 
 
Transition services, intellectual property, technical support and innovation and subleases(3)
 
$
(3.2
)
 
$
(7.9
)
Project management team(4)
 
.5

 
.8

Net reduction of selling, general and administrative expenses
 
$
(2.7
)
 
$
(7.1
)
 
 
March 31, 2018
 
December 31, 2017
Balance Sheet Data
 
 
 
 
Inventories(5)
 
$
.2

 
$
.4

Receivables due from New Avon(6)
 
$
5.3

 
$
9.8

Payables due to New Avon(7)
 
$
.4

 
$
.2

Payables due to an affiliate of Cerberus(8)
 
$
.5

 
$
.4


(1) The Company supplies product to New Avon as part of a manufacturing and supply agreement. The Company recorded revenue of $5.9 and $8.0, within other revenue in our Consolidated Statement of Operations, and gross profit of $.4 and $.6 associated with this agreement during the three months ended March 31, 2018 and 2017, respectively.
(2) New Avon supplies product to the Company as part of the same manufacturing and supply agreement noted above. The Company purchased $.6 and $1.0 from New Avon associated with this agreement during the three months ended March 31, 2018 and 2017, respectively, and recorded $.5 and $.8 associated with these purchases within cost of sales in our Consolidated Statement of Operations during the three months ended March 31, 2018 and 2017, respectively.
(3) The Company also entered into a transition services agreement to provide certain services to New Avon, as well as an intellectual property ("IP") license agreement, an agreement for technical support and innovation and subleases for office space. In addition, New Avon performed certain services for the Company under a similar transition services agreement which expired during the third quarter of 2017. The Company recorded a net $3.2 and $7.9 reduction of selling, general and administrative expenses associated with these agreements during the three months ended March 31, 2018 and 2017, respectively, which generally represents a recovery of the related costs.
(4) The Company also entered into agreements with an affiliate of Cerberus, which provide for the secondment of Cerberus affiliate personnel to the Company's project management team responsible for assisting with the execution of the transformation plan (the "Transformation Plan") announced in January 2016. The Company recorded $.5 and $.8 in selling, general and administrative expenses associated with these agreements during the three months ended March 31, 2018 and 2017, respectively. See Note 11, Restructuring Initiatives for additional information related to the Transformation Plan.
(5) Inventories relate to purchases from New Avon, associated with the manufacturing and supply agreement, which have not yet been sold, and were classified within inventories in our Consolidated Balance Sheets.
(6) The receivables due from New Avon relate to the agreements for transition services, the IP license, technical support and innovation and subleases for office space, as well as the manufacturing and supply agreement, and were classified within prepaid expenses and other in our Consolidated Balance Sheets.
(7) The payables due to New Avon relate to the manufacturing and supply agreement, and were classified within other accrued liabilities in our Consolidated Balance Sheets.
(8) The payables due to an affiliate of Cerberus relate to the agreement for the project management team, and were classified within other accrued liabilities in our Consolidated Balance Sheets.