REVENUE

3 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Revenue

REVENUE

Disaggregation of revenue

In the following table, revenue is disaggregated by product or service type. All revenue is recognized at a point in time, when control of a product is transferred to a customer:

	Three Months Ended March 31, 2019
	Reportable segments
	Europe, Middle East & Africa		South Latin America		North Latin America		Asia Pacific		Total reportable segments		Other operating segments and business activities		Total
Beauty:
Skincare	$	139.1	$	126.7	$	50.3	$	33.2	$	349.3	$	—	$	349.3
Fragrance	133.9		98.3		48.0		17.8		298.0		—		298.0
Color	93.9		60.2		21.9		13.2		189.2		—		189.2
Total Beauty	366.9		285.2		120.2		64.2		836.5		—		836.5
Fashion & Home:
Fashion	60.5		38.8		22.1		42.9		164.3		—		164.3
Home	8.5		60.2		40.3		6.4		115.4		—		115.4
Total Fashion & Home	69.0		99.0		62.4		49.3		279.7		—		279.7
Net sales	435.9		384.2		182.6		113.5		1,116.2		—		1,116.2
Representative fees	22.5		29.5		10.1		1.8		63.9		—		63.9
Other	.3		1.0		—		—		1.3		5.5		6.8
Other revenue	22.8		30.5		10.1		1.8		65.2		5.5		70.7
Total revenue	$	458.7	$	414.7	$	192.7	$	115.3	$	1,181.4	$	5.5	$	1,186.9

	Three months ended March 31, 2018
	Reportable segments
	Europe, Middle East & Africa		South Latin America		North Latin America		Asia Pacific		Total reportable segments		Other operating segments and business activities		Total
Beauty:
Skincare	$	169.2	$	141.8	$	46.7	$	31.4	$	389.1	$	4.7	$	393.8
Fragrance	163.2		118.6		53.6		18.6		354.0		2.2		356.2
Color	120.8		80.9		20.9		13.1		235.7		3.3		239.0
Total Beauty	453.2		341.3		121.2		63.1		978.8		10.2		989.0
Fashion & Home:
Fashion	79.8		46.5		22.6		39.7		188.6		1.9		190.5
Home	9.3		71.9		41.2		7.0		129.4		.7		130.1
Total Fashion & Home	89.1		118.4		63.8		46.7		318.0		2.6		320.6
Net sales	542.3		459.7		185.0		109.8		1,296.8		12.8		1,309.6
Representative fees	25.9		36.4		10.6		1.6		74.5		1.4		75.9
Other	.2		1.0		—		—		1.2		6.8		8.0
Other revenue	26.1		37.4		10.6		1.6		75.7		8.2		83.9
Total revenue	$	568.4	$	497.1	$	195.6	$	111.4	$	1,372.5	$	21.0	$	1,393.5

Contract balances

The timing of revenue recognition generally is different from the timing of a promise made to a Representative. As a result, we have contract liabilities, which primarily relate to the advance consideration received from Representatives prior to transfer of the related good or service for material rights, such as loyalty points and status programs, and are primarily classified within other accrued liabilities (with the long-term portion in other liabilities) in our Consolidated Balance Sheets.

Generally, we record accounts receivable when we invoice a Representative. In addition, we record an estimate of an allowance for doubtful accounts on receivable balances based on an analysis of historical data and current circumstances, including seasonality and changing trends. The allowance for doubtful accounts is reviewed for adequacy, at a minimum, on a quarterly basis. We generally have no detailed information concerning, or any communication with, any ultimate consumer of our products beyond the Representative. We have no legal recourse against the ultimate consumer for the collection of any accounts receivable balances due from the Representative to us. If the financial condition of the Representatives were to deteriorate, resulting in their inability to make payments, additional allowances may be required.

The following table provides information about receivables and contract liabilities from contracts with customers at March 31, 2019 and December 31, 2018:

	2019				2018
	31 March		1 January		31 March		1 January
Accounts receivable, net of allowances of $79, $93, $128 and $139	$	340.9	$	349.7	$	429.0	$	457.2
Contract liabilities	$	58.3	83.5		$	75.5	$	91.8

At January 1, 2019 and March 31, 2019 we had a contract liability of $83.5 and $58.3, respectively, relating to certain material rights (loyalty points, status program and prospective discounts). During the three months ended March 31, 2019, we recognized $52.1 of revenue related to the contract liability balance at January 1, 2019, as the result of performance obligations satisfied. In addition, we deferred an additional $26.1 related to certain material rights granted during the period, for which the performance obligations are not yet satisfied. Of the amount deferred during the period, substantially all will be recognized within a year, with the significant majority to be captured within a quarter. The remaining movement in the contract liability balance is attributable to foreign exchange differences arising on the translation of the balance as at March 31, 2019 as compared with December 31, 2018.

At January 1, 2018 and March 31, 2018 we had a contract liability of $91.8 and $75.5, respectively. During the three months ended March 31, 2018, we recognized $66.0 of revenue related to the contract liability balance at January 1, 2018, as the result of performance obligations satisfied. In addition, we deferred an additional $47.9 related to certain material rights granted during the quarter, for which the performance obligations are not yet satisfied. Of the amount deferred during the period, substantially all was recognized in 2018.

Contract costs

Incremental costs to obtain contracts, such as bonuses or commissions, are recognized as an asset if the entity expects to recover them. However, ASC 340-40, Other Assets and Deferred Costs, offers a practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that the entity otherwise would have recognized is one year or less. We elected the practical expedient and expense costs to obtain contracts when incurred because our amortization period is one year or less.

Costs to fulfill contracts with Representatives are comprised of shipping and handling (including order processing) and payment processing services, which are expensed as incurred. The fees for these services are included in the transaction price.