SEGMENT DATA AND RELATED INFORMATION

3 Months Ended

Mar. 31, 2014

Segment Reporting [Abstract]

SEGMENT DATA AND RELATED INFORMATION

SEGMENT DATA AND RELATED INFORMATION

Reportable operating segments include components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (the “Chief Executive Officer”) in deciding how to allocate resources and in assessing performance. As a result of the similarities in the procurement, marketing and distribution processes for all of the Company’s products, much of the information provided in the consolidated financial statements is similar to, or the same as, that reviewed on a regular basis by the Company's management.

At March 31, 2014, the Company’s operations are organized into the following two operating segments, which also represent the Company’s reportable segments:

• Consumer - The Consumer segment is comprised of the Company's consumer brands, which primarily include Revlon, Almay, SinfulColors and Pure Ice in cosmetics; Revlon ColorSilk in women’s hair color; Revlon in beauty tools; and Mitchum in anti-perspirant deodorants. The Company’s principal customers for its consumer products include the mass retail channel, consisting of large mass volume retailers and chain drug and food stores in the U.S. and internationally, as well as certain department stores and other specialty stores, such as perfumeries, outside the U.S. The Consumer segment also includes a skincare and hair color line sold in the mass retail channel, primarily in Spain, which were acquired as part of the Colomer Acquisition.

• Professional - The Professional segment is comprised primarily of the brands which the Company acquired in the Colomer Acquisition, which include Revlon Professional in hair color and hair care; CND-branded productsin nail polishes and nail enhancements; and American Crew in men’s grooming products, all of which are sold worldwide in the professional salon channel. The Professional segment also includes a multi-cultural line consisting of Crème of Nature hair care products sold in the mass retail channel and in professional salons, primarily in the U.S. The Company’s principal customers for its professional products include hair and nail salons and distributors in the U.S. and internationally.

The Company's management evaluates segment profit, which is defined as income from continuing operations before interest, taxes, depreciation, amortization, gains/losses on foreign currency fluctuations, gains/losses on the early extinguishment of debt and miscellaneous expenses, for each of the Company's Consumer and Professional segments. Segment profit also excludes unallocated corporate expenses and the impact of certain items that are not directly attributable to the segments' underlying operating performance, which for the three months ended March 31, 2014 and 2013 include the impact of: (i) restructuring and related charges; (ii) acquisition and integration costs; (iii) costs of sales resulting from a fair value adjustment to inventory acquired in the Colomer Acquisition; and (iv) insurance proceeds received in 2013 related to the 2011 fire that destroyed the Company's facility in Venezuela. Such items are shown in the table reconciling segment profit to consolidated income before income taxes. Unallocated corporate expenses primarily relate to general and administrative expenses related to the corporate organization. These expenses are recorded in unallocated corporate expenses as these items are centrally directed and controlled and are not included in internal measures of segment operating performance. The Company does not have any material inter-segment sales.

The accounting policies for each of the reportable segments are the same as those described in Note 1, “Description of Business and Summary of Significant Accounting Policies” in Revlon, Inc.'s 2013 Form 10-K. The assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; thus, no additional information regarding assets and liabilities of the Company’s operating segments is produced for the Company's management or included herein.

The following table is a comparative summary of the Company’s net sales and segment profit by operating segment for the three months ended March 31, 2014 and 2013:

	Three Months Ended March 31,
	2014 (a)		2013
Segment Net Sales:
Consumer	$	339.5	$	325.9
Professional	130.3		—
Total	$	469.8	$	325.9
Segment Profit:
Consumer	$	71.5	$	76.3
Professional	31.9		—
Total	$	103.4	$	76.3
Reconciliation:
Segment Profit	$	103.4	$	76.3
Less:
Unallocated corporate expenses	15.6		17.6
Depreciation and amortization	25.0		17.0
Non-recurring items:
Restructuring and related charges	13.6		0.3
Acquisition and integration costs	3.8		—
Inventory purchase accounting adjustment, cost of sales	2.6		—
Gain from insurance proceeds related to Venezuela fire	—		(8.3		)
Operating Income	42.8		49.7
Less:
Interest Expense	22.3		18.8
Interest Expense - Preferred Stock	—		1.6
Amortization of debt issuance costs	1.4		1.3
Loss on early extinguishment of debt	1.9		27.9
Foreign currency losses, net	1.4		3.3
Miscellaneous, net	0.1		0.1
Income (loss) from continuing operations before income taxes	$	15.7	$	(3.3	)

^(a)The Consumer segment net sales and segment profit in the first quarter of 2014 include the results of retail brands acquired in the Colomer Acquisition, which had previously been reported in the Professional segment.

As of March 31, 2014, the Company had operations established in 24 countries outside of the U.S. and its products are sold throughout the world. Generally, net sales by geographic area are presented by attributing revenues from external customers on the basis of where the products are sold.

In the tables below, certain prior year amounts have been reclassified to conform to the current period’s presentation.

	Three Months Ended March 31,
	2014			2013
Geographic area:
Net sales:
United States	$	250.2	53%	$	192.1	59%
Outside of the United States	219.6		47%	133.8		41%
	$	469.8		$	325.9

	March 31, 2014			December 31, 2013
Long-lived assets, net:
United States	$	840.4	73%	$	837.0	73%
Outside of the United States	308.3		27%	315.1		27%
	$	1,148.7		$	1,152.1

	Three Months Ended March 31,
	2014			2013
Classes of similar products:
Net sales:
Color cosmetics	$	255.3	54%	$	219.2	67%
Hair care	130.7		28%	41.6		13%
Beauty care and fragrance	83.8		18%	65.1		20%
	$	469.8		$	325.9