REVENUE

6 Months Ended

Jun. 30, 2019

Revenue from Contract with Customer [Abstract]

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 June 30, 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	$	136.6	$	130.1		$	49.9	$	29.3	$	345.9		$	—	$	345.9
Fragrance	123.8		114.5			45.6		19.2		303.1			—		303.1
Color	82.0		66.7			21.2		10.9		180.8			—		180.8
Total Beauty	342.4		311.3			116.7		59.4		829.8			—		829.8
Fashion & Home:
Fashion	55.2		41.3			19.9		39.8		156.2			—		156.2
Home	6.4		62.0			47.0		7.4		122.8			—		122.8
Total Fashion & Home	61.6		103.3			66.9		47.2		279.0			—		279.0
Product sales	404.0		414.6			183.6		106.6		1,108.8			—		1,108.8
Representative fees	21.0		28.8			10.2		1.7		61.7			—		61.7
Other	.1		(.4		)	—		.1		(.2		)	4.5		4.3
Other revenue	21.1		28.4			10.2		1.8		61.5			4.5		66.0
Total revenue	$	425.1	$	443.0		$	193.8	$	108.4	$	1,170.3		$	4.5	$	1,174.8



	Three Months Ended June 30, 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	$	154.4	$	143.9	$	43.8	$	30.3	$	372.4	$	2.3	$	374.7
Fragrance	143.8		131.5		52.4		20.1		347.8		.7		348.5
Color	98.1		80.6		20.8		12.9		212.4		1.4		213.8
Total Beauty	396.3		356.0		117.0		63.3		932.6		4.4		937.0
Fashion & Home:
Fashion	72.9		49.9		22.5		40.7		185.8		1.3		187.1
Home	7.6		72.5		56.6		7.5		144.3		.4		144.7
Total Fashion & Home	80.5		122.4		79.1		48.2		330.1		1.7		331.8
Product sales	476.8		478.4		196.1		111.5		1,262.7		6.1		1,268.8
Representative fees	23.7		35.2		11.2		1.5		71.6		.5		72.1
Other	.2		2.6		—		.1		2.9		8.1		11.0
Other revenue	23.9		37.8		11.2		1.6		74.5		8.6		83.1
Total revenue	$	500.7	$	516.1	$	207.3	$	113.1	$	1,337.2	$	14.7	$	1,351.9



	Six Months Ended June 30, 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	$	275.7	$	256.8	$	100.2	$	62.5	$	695.2	$	—	$	695.2
Fragrance	257.7		212.8		93.6		37.0		601.1		—		601.1
Color	175.9		126.9		43.1		24.1		370.0		—		370.0
Total Beauty	709.3		596.5		236.9		123.6		1,666.3		—		1,666.3
Fashion & Home:
Fashion	115.7		80.1		42.0		82.7		320.5		—		320.5
Home	14.9		122.2		87.3		13.8		238.2		—		238.2
Total Fashion & Home	130.6		202.3		129.3		96.5		558.7		—		558.7
Product sales	839.9		798.8		366.2		220.1		2,225.0		—		2,225.0
Representative fees	43.5		58.3		20.3		3.5		125.6		—		125.6
Other	.4		.6		—		.1		1.1		10.0		11.1
Other revenue	43.9		58.9		20.3		3.6		126.7		10.0		136.7
Total revenue	$	883.8	$	857.7	$	386.5	$	223.7	$	2,351.7	$	10.0	$	2,361.7



	Six Months Ended June 30, 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	$	323.8	$	285.7	$	90.5	$	61.6	$	761.5	$	7.0	$	768.5
Fragrance	307.0		250.0		106.0		38.7		701.8		2.9		704.7
Color	218.8		161.5		41.6		26.1		448.1		4.7		452.8
Total Beauty	849.6		697.2		238.1		126.4		1,911.4		14.6		1,926.0
Fashion & Home:
Fashion	152.6		96.4		45.1		80.4		374.5		3.0		377.5
Home	16.9		144.4		97.9		14.5		273.6		1.3		274.9
Total Fashion & Home	169.5		240.8		143.0		94.9		648.1		4.3		652.4
Product sales	1,019.1		938.0		381.1		221.3		2,559.5		18.9		2,578.4
Representative fees	49.7		71.5		21.8		3.1		146.1		1.9		148.0
Other	.3		3.7		—		.1		4.1		14.9		19.0
Other revenue	50.0		75.2		21.8		3.2		150.2		16.8		167.0
Total revenue	$	1,069.1	$	1,013.2	$	402.9	$	224.5	$	2,709.7	$	35.7	$	2,745.4

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 June 30, 2019 and December 31, 2018:



	June 30, 2019		December 31, 2018
Accounts receivable, net of allowances of $72 and $93	$	332.8	$	349.7
Contract liabilities	$	55.7	$	84.4

The contract liability balances relate to certain material rights (loyalty points, status program and prospective discounts). During the six months ended June 30, 2019, we recognized $63.4 of revenue related to the contract liability balance at the beginning of the six month period ended June 30, 2019, as the result of performance obligations satisfied. In addition, we deferred an additional $34.5 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 June 30, 2019 as compared with December 31, 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.