RESTRUCTURING CHARGES

EA Integration Restructuring Program

In December 2016, in connection with integrating the Elizabeth Arden and Revlon organizations, the Company began the process of implementing certain integration activities, including consolidating offices, eliminating certain duplicative activities and streamlining back-office support (the "EA Integration Restructuring Program"). The EA Integration Restructuring Program is designed to reduce the Company’s cost of goods sold and selling, general and administrative ("SG&A") expenses. As a result of the EA Integration Restructuring Program, the Company expects to eliminate approximately 425 positions worldwide.

In connection with implementing the EA Integration Restructuring Program, the Company expects to recognize approximately $90 million to $95 million of total pre-tax restructuring charges (the "EA Integration Restructuring Charges"), consisting of: (i) approximately $65 million to $70 million of employee-related costs, including severance, retention and other contractual termination benefits; (ii) approximately $15 million of lease termination costs; and (iii) approximately $10 million of other related charges.

A summary of the restructuring and related charges incurred through December 31, 2017 in connection with the EA Integration Restructuring Program is presented in the following table:



	Restructuring Charges and Other, Net
	Employee Severance and Other Personnel Benefits		Lease Termination and Other Costs^(a)		Total Restructuring Charges		Inventory Adjustments^(b)		Other Related Charges^(c)		Total Restructuring and Related Charges
Charges incurred through December 31, 2016	$	31.5	$	0.2	$	31.7	$	0.5	$	2.3	$	34.5
Charges incurred during the year ended December 31, 2017	31.3		4.8		36.1		0.9		0.7		37.7
Cumulative charges incurred through December 31, 2017	$	62.8	$	5.0	$	67.8	$	1.4	$	3.0	$	72.2

^(a) Includes primarily lease termination costs related to certain exited Elizabeth Arden office space.

^(b)Inventory adjustments are recorded within cost of sales in the Company’s consolidated statement of operations and comprehensive (loss) income.

^(c) Other related charges are recorded within SG&A in the Company’s consolidated statement of operations and comprehensive (loss) income.

A summary of the restructuring charges incurred through December 31, 2017 in connection with the EA Integration Restructuring Program by reportable segment is presented in the following table:



	Charges incurred during the twelve months ended December 31, 2017		Cumulative charges incurred through December 31, 2017
Elizabeth Arden	$	16.1	$	22.6
Consumer	12.1		16.3
Professional	4.2		9.8
Unallocated Corporate Expenses	3.7		19.1
Total	$	36.1	$	67.8

The Company expects that cash payments will total $90 million to $95 million in connection with the EA Integration Restructuring Charges, of which $42.5 million was paid in 2017. The remaining balance is expected to be substantially paid by the end of 2020.

Restructuring Reserve

The liability balance and related activity for each of the Company's restructuring programs are presented in the following table:



								Utilized, Net
	Liability Balance at January 1, 2017		Expense (Income), Net			Foreign Currency Translation		Cash			Non-cash		Liability Balance at December 31, 2017
2017
EA Integration Restructuring Program:^(a)
Employee severance and other personnel benefits	$	31.5	$	31.3		$	—	$	(37.0	)	$	—	$	25.8
Other	3.0		6.4			—		(5.5		)	—		3.9
2015 Efficiency Program:^(b)
Employee severance and other personnel benefits	4.5		(3.2		)	—		(1.0		)	—		0.3
Other	0.2		—			—		—			—		0.2
December 2013 Program:^(c)
Employee severance and other personnel benefits	1.2		—			—		(0.1		)	—		1.1
Other immaterial actions:^(d)
Employee severance and other personnel benefits	1.4		0.6			—		(0.9		)	—		1.1
Other	1.0		1.1			0.1		(0.7		)	—		1.5
Total restructuring reserve	$	42.8	$	36.2		$	0.1	$	(45.2	)	$	—	$	33.9

	Liability Balance at January 1, 2016		Expense (Income), Net			Foreign Currency Translation		Cash			Non-cash		Liability Balance at December 31, 2016
2016
EA Integration Restructuring Program:
Employee severance and other personnel benefits	$	—	$	31.5		$	—	$	—		$	—	$	31.5
Other	—		3.0										3.0
2015 Efficiency Program:
Employee severance and other personnel benefits	6.6		0.6			—		(2.7		)	—		4.5
Other	0.1		0.7			—		(0.6		)	—		0.2
2014 Integration Program:^(e)
Employee severance and other personnel benefits	0.8		—			—		(0.8		)	—		—
Other	0.1		—			—		(0.1		)	—		—
December 2013 Program:
Employee severance and other personnel benefits	1.2		—			—		—			—		1.2
Other immaterial actions:
Employee severance and other personnel benefits	2.3		2.1			—		(3.0		)	—		1.4
Other	0.7		1.5			—		(1.5		)	0.3		1.0
Total restructuring reserve	$	11.8	$	39.4		$	—	$	(8.7	)	$	0.3	$	42.8

^(a)Includes $1.6 million in charges related to inventory adjustments and other restructuring-related charges that were reflected within cost of sales and SG&A, respectively, in the Company’s December 31, 2017 Consolidated Statement of Operations and Comprehensive (Loss) Income.

^(b)In September 2015, the Company initiated restructuring actions to drive certain organizational efficiencies, including reducing general and administrative expenses, within the Company's Consumer and Professional segments (the "2015 Efficiency Program"). These actions were completed by the end of 2017. During the third quarter of 2017, the Company performed a review of the 2015 Efficiency Program and determined that employees in certain positions that were initially identified to be eliminated would continue to be employed by the Company in varying positions in connection with integrating the Elizabeth Arden and Revlon organizations. As a result, the Company reversed approximately $3.2 million in previously accrued restructuring charges recognized in connection with the 2015 Efficiency Program. Total cash payments made for the 2015 Efficiency Program were $7.1 million. A summary of the restructuring and related charges incurred through December 31, 2017 in connection with the 2015 Efficiency Program by reportable segment is presented in the following table:



	2015 Efficiency Program cumulative charges incurred through December 31, 2017
Consumer	$	3.6
Professional	3.5
Unallocated Corporate Expenses	0.5
Total	$	7.6

^(c)In December 2013, the Company announced restructuring actions that primarily included exiting its direct manufacturing, warehousing and sales business operations in mainland China within the Consumer segment (the "December 2013 Program"). The December 2013 Program resulted in the elimination of approximately 1,100 positions in 2014, primarily in China.

^(d)Consists primarily of $1.1 million in charges related to the program that Elizabeth Arden commenced prior to the Elizabeth Arden Acquisition to further align their organizational structure and distribution arrangements for the purpose of improving its go-to-trade capabilities and execution and to streamline their organization (the "Elizabeth Arden 2016 Business Transformation Program").

^(e⁾Following Products Corporation's October 2013 acquisition of The Colomer Group Participations, S.L. ("Colomer" and the "Colomer Acquisition"), the Company implemented actions to integrate Colomer's operations into the Company's business, which reduced costs across the Company's businesses and generated synergies and operating efficiencies within the Company's global supply chain and consolidated offices and back office support (all such actions, together, the "2014 Integration Program"). The 2014 Integration Program was substantially completed as of December 31, 2015.

At December 31, 2017 and December 31, 2016, all of the restructuring reserve balances were included within accrued expenses and other in the Company's Consolidated Balance Sheets.