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PENSION AND POST-RETIREMENT BENEFITS
 12 Months Ended
Dec. 31, 2022
Retirement Benefits [Abstract]  
PENSION AND POST-RETIREMENT BENEFITS PENSION AND POST-RETIREMENT BENEFITS
Savings Plan:

The Company offers a qualified defined contribution plan for its U.S.-based employees, the Revlon Employees' Savings, Investment and Profit Sharing Plan (as amended, the "Savings Plan"), which allows eligible participants to contribute up to 50%, and highly compensated participants to contribute up to 25%, of eligible compensation through payroll deductions, subject to certain annual dollar limitations imposed by the Internal Revenue Service (the "IRS"). The Company matches employee contributions at one dollar for each dollar contributed up to the first 6% of eligible compensation. The Company made cash matching contributions to the Savings Plan of $8.1 million and $3.7 million during 2022 and 2021, respectively. The Company also offers a non-qualified defined contribution plan (the "Excess Savings Plan") providing benefits for certain U.S. employees who are in excess of IRS limitations. These non-qualified defined contribution benefits are funded from the Company's general assets. Beginning January 1, 2022, the following changes are in effect: (i) the Company will match employee contributions at $1 dollar for each dollar contributed up to the first 6% of eligible compensation; (ii) highly compensated participants may contribute up to 25% of eligible compensation through payroll deductions to the Savings Plan; and (iii) highly compensated participants may contribute up to 12% to the Excess Saving Plan when the maximum contributions to the Savings Plan have been met.

The Company’s qualified and non-qualified defined contribution savings plans for its U.S.-based employees contain a discretionary profit-sharing component that enables the Company, should it elect to do so, to make discretionary profit-sharing contributions. For 2021, the Company made discretionary profit-sharing contributions to the Savings Plan and Excess Savings Plan of $5.4 million of which $4.0 million was paid in 2021 and $1.4 million was paid in January 2022, or up to 3% of eligible compensation, which was credited on a quarterly basis. Effective January 1, 2022, the Company no longer made discretionary profit-sharing contributions to the Savings Plan and Excess Savings Plan.

Pension Benefits:

In 2009, Products Corporation’s U.S. qualified defined benefit pension plan (the Revlon Employees’ Retirement Plan, which covered a substantial portion of the Company's employees in the U.S.) and its non-qualified pension plan (the Revlon Pension Equalization Plan) were amended to cease future benefit accruals under such plans after December 31, 2009. No additional benefits have accrued since December 31, 2009, other than interest credits on participant account balances under the cash balance program of the Company’s U.S. pension plans. Also, service credits for vesting and early retirement eligibility will continue to accrue in accordance with the terms of the respective plans. In 2010, the Company amended its Canadian defined benefit pension plan (the Affiliated Revlon Companies Employment Plan) to reduce future benefit accruals under such plan after December 31, 2010. Additionally, while the Company closed its U.K. defined pension plan to new entrants in 2002, then-existing participants continue to accrue pension benefits.

Products Corporation also sponsors two U.S. qualified defined benefit pension plans, has non-qualified pension plans that provide benefits for certain U.S. and non-U.S. employees, and for U.S. employees in excess of IRS limitations in the U.S. and in certain limited cases contractual benefits for certain former officers of the Company. These non-qualified plans are funded from the Company's general assets.

Post-retirement Benefits:

The Company previously sponsored an unfunded retiree benefit plan, which provides death benefits payable to beneficiaries of a very limited number of former employees. Participation in this plan was limited to participants enrolled as of December 31, 1993. The Company also administers an unfunded medical insurance plan on behalf of Revlon Holdings, certain costs of which have been apportioned to Revlon Holdings under the transfer agreements among Revlon, Products Corporation and MacAndrews & Forbes. (See Note 19, "Related Party Transactions").
The following table provides an aggregate reconciliation of the projected benefit obligations, plan assets, funded status and amounts recognized in the Company’s Consolidated Financial Statements related to the Company's significant pension and other post-retirement benefit plans:
Pension PlansOther Post-Retirement Benefit Plans
December 31,
2022202120222021
Change in Benefit Obligation:
Benefit obligation - beginning of year$(609.3)$(666.5)$(12.4)$(14.5)
Service cost(1.2)(1.4)— — 
Interest cost(11.2)(9.1)(0.2)(0.2)
Actuarial (loss) gain113.5 23.1 1.1 1.6 
Settlement and Curtailment2.7 2.6 — — 
Benefits paid36.4 42.1 0.7 0.7 
Plan Amendments0.1 (1.0)— — 
Plan participant contributions(0.4)(0.3)— — 
Foreign currency translation adjustments7.2 1.2 — — 
Benefit obligation - end of year$(462.2)$(609.3)$(10.8)$(12.4)
Change in Plan Assets:
Fair value of plan assets - beginning of year$474.0 $463.0 $— $— 
Actual return (loss) on plan assets(89.8)33.9 — — 
Employer contributions4.2 21.8 0.7 0.7 
Settlement(2.7)(2.1)— — 
Benefits paid(36.4)(42.1)(0.7)(0.7)
Plan participant contributions0.4 0.3 — — 
Foreign currency translation adjustments(7.4)(0.8)— — 
Fair value of plan assets - end of year$342.3 $474.0 $— $— 
Unfunded status of plans at December 31, 2022$(119.9)$(135.3)$(10.8)$(12.4)

With respect to the Company's pension plans and other post-retirement benefit plans, amounts recognized in the Company’s Consolidated Balance Sheets at December 31, 2022 and 2021 consisted of the following:
Pension PlansOther Post-Retirement Benefit Plans
December 31,
2022202120222021
Other long-term assets$5.9 $6.8 $— $— 
Accrued expenses and other(8.2)(6.3)(0.7)(0.9)
Pension and other post-retirement benefit liabilities(74.4)(135.8)(10.1)(11.5)
Pension liabilities subject to compromise(43.2)— — — 
Total liability$(119.9)$(135.3)$(10.8)$(12.4)
Accumulated other comprehensive loss, gross$242.2 $257.6 $1.9 $2.9 
Income tax benefit (50.5)(50.3)(1.1)(1.1)
Portion allocated to Revlon Holdings(0.8)(0.9)0.3 0.4 
Accumulated other comprehensive loss, net$190.9 $206.4 $1.1 $2.2 

With respect to the above accrued expenses and other, the Company has recorded receivables from affiliates of $2.0 million at both December 31, 2022 and 2021 relating to pension plan liabilities retained by such affiliates.
The projected benefit obligation, accumulated benefit obligation and fair value of plan assets for the Company's pension plans are as follows:
December 31,
20222021
Projected benefit obligation$462.2 $609.3 
Accumulated benefit obligation460.8 607.0 
Fair value of plan assets342.3 474.0 

The $147.1 million decrease in the Company’s projected pension benefit obligation at December 31, 2022 as compared to December 31, 2021, is primarily due to the increase in the discount rates, which had the effect of decreasing the Company’s projected pension benefit obligation by approximately $90.6 million.

Net Periodic Benefit Cost
The components of net periodic benefit costs for the Company's pension and the other post-retirement benefit plans for the year ended December 31, 2022 and 2021, respectively, were as follows:
Pension PlansOther
Post-Retirement Benefit Plans
Year Ended December 31,
2022202120222021
Net periodic benefit costs:
Service cost$1.2 $1.4 $— $— 
Interest cost11.2 9.1 0.2 0.2 
Expected return on plan assets(19.4)(19.7)— — 
Amortization of actuarial loss11.0 13.3 0.4 0.6 
Amortization of prior service cost0.1 — — — 
Curtailment and Settlement gain(0.5)— — — 
Total net periodic benefit costs prior to allocation$3.6 $4.1 $0.6 $0.8 
Portion allocated to Revlon Holdings— (0.1)— — 
Total net periodic benefit costs $3.6 $4.0 $0.6 $0.8 

In the year ended December 31, 2022, the Company recognized net periodic benefit cost of $4.2 million, compared to net periodic benefit cost of $4.8 million in the year ended December 31, 2021, primarily due to higher amortization of actuarial loss in 2021 and higher curtailment and settlement gain in 2022, partially offset by higher interest cost in 2022 and higher expected return on plan assets in 2021.

Net periodic benefit costs are reflected in the Company's Consolidated Financial Statements as follows for the periods presented:
Year Ended December 31,
20222021
Net periodic benefit costs:
Selling, general and administrative expense$1.2 $1.4 
Miscellaneous, net3.0 3.4 
Total net periodic benefit costs$4.2 $4.8 
Amounts recognized in accumulated other comprehensive loss at December 31, 2022 with respect to the Company’s pension plans and other post-retirement plans, which have not yet been recognized as a component of net periodic benefit cost, were as follows:
Pension BenefitsPost-Retirement BenefitsTotal
2022
Net actuarial loss$240.5 $1.9 $242.4 
Prior service cost1.7 — 1.7 
Accumulated Other Comprehensive Loss, Gross242.2 1.9 244.1 
Income tax benefit (50.5)(1.1)(51.6)
Portion allocated (to) from Revlon Holdings(0.8)0.3 (0.5)
Accumulated Other Comprehensive Loss, Net$190.9 $1.1 $192.0 
Pension BenefitsPost-Retirement BenefitsTotal
2021
Net actuarial loss$255.7 $2.9 $258.6 
Prior service cost1.9 — 1.9 
Accumulated Other Comprehensive Loss, Gross$257.6 $2.9 $260.5 

Pension Plan Assumptions:
The following weighted average assumptions were used to determine the Company’s projected benefit obligation of the Company’s U.S. and International pension plans at the end of the respective years:
U.S. PlansInternational Plans
2022202120222021
Discount rate4.95 %2.59 %4.43 %1.74 %
Rate of future compensation increasesN/AN/A2.02 %1.81 %

The following weighted average assumptions were used to determine the Company’s net periodic benefit (income) cost of the Company’s U.S. and International pension plans during the respective years:
U.S. PlansInternational Plans
2022202120222021
Discount rate2.59 %2.18 %1.74 %1.33 %
Expected long-term return on plan assets4.50 %4.50 %3.57 %3.46 %
Rate of future compensation increasesN/AN/A1.81 %1.81 %

The Company uses the "full yield curve" method to calculate the service and interest components of net periodic benefit cost for the Company's pension and other post-retirement benefits. Under the "full yield curve" method, the discount rate assumption was built through the application of specific spot rates along the yield curve used in the determination of the benefit obligation to the relevant projected cash flows for each of the Company's pension and other post-retirement plans.
In selecting its expected long-term rate of return on its pension plan assets, the Company considers a number of factors, including, without limitation, recent and historical performance of pension plan assets, the pension plan portfolios' asset allocations over a variety of time periods compared with third-party studies, the performance of the capital markets in recent years and other factors, as well as advice from various third parties, such as the pension plans' advisors, investment managers and actuaries. While the Company considered both the recent performance and the historical performance of pension plan assets, the Company’s assumptions are based primarily on its estimates of long-term, prospective rates of return. Using the aforementioned methodologies, the Company selected a 4.50% and 3.57% weighted-average long-term rate of return on plan assets assumption during 2022 for the U.S. and International pension plans, respectively. Differences between actual and
expected asset returns are recognized in the net periodic benefit cost over the remaining service period of the active participating employees.
The rate of future compensation increases is an assumption used by the actuarial consultants for pension accounting and is determined based on the Company’s current expectation for such increases.
Investment Policy:
The Investment Committee for the Company's U.S. pension plans (the "Investment Committee") has adopted (and revises from time-to-time) an investment policy for the Company's U.S. pension plans with the objective of realizing a long-term rate of return on pension plan assets that meets or exceeds, over time, the expected long-term rate of return on plan assets assumption, weighed against a reasonable risk level. In connection with this objective, the Investment Committee retains a professional investment advisor who recommends investment managers that invest plan assets in the following asset classes: common and preferred stock, mutual funds, fixed income securities, common and collective funds, hedge funds, group annuity contracts and cash and other investments. The Company’s International plans follow a similar methodology in conjunction with local actuarial consultants and asset managers.
The investment policy adopted by the Investment Committee provides for investments in a broad range of publicly-traded securities, among other things. The investments are in domestic and international stocks, ranging from small to large capitalization stocks, debt securities ranging from domestic and international treasury issues, corporate debt securities, mortgages and asset-backed issues. Other investments may include cash and cash equivalents and hedge funds. The investment policy also allows for investments in private equity funds that are not covered in investments described above, provided that the Investment Committee approves any such investments prior to their selection. Also, global balanced strategies are utilized to provide for investments in a broad range of publicly-traded stocks and bonds in both domestic and international markets, as described above. In addition, the global balanced strategies can include commodities, provided that the Investment Committee approves any such investments prior to their selection.
The Investment Committee’s investment policy does not allow the use of derivatives for speculative purposes, but such policy does allow its investment managers to use derivatives for the purpose of reducing risk exposures or to replicate exposures of a particular asset class.
The Company’s U.S. and International pension plans have target asset allocation ranges that are intended to be flexible guidelines for allocating the plans’ assets among various classes of assets. These target ranges are reviewed periodically and considered for readjustment when an asset class weighting is outside of its target range (recognizing that these are flexible target ranges that may vary from time-to-time) with the objective of meeting or exceeding the expected long-term rate of return on plan assets assumption, weighed against a reasonable risk level. The target ranges per asset class in effect for 2022 were as follows:
Target Ranges
U.S. PlansInternational Plans
Asset Class:
Common and preferred stock
0% - 10%
—
Mutual funds
15% - 35%
—
Fixed income securities
0% - 20%
—
Common and collective funds
50% - 75%
100%
Hedge funds
0% - 15%
—
Cash and other investments
0% - 10%
—

Fair Value of Pension Plan Assets:

The following table presents information on the fair value of the Company's U.S. and International pension plan assets at December 31, 2022 and 2021:
U.S. PlansInternational Plans
2022202120222021
Fair value of plan assets$289.7 $391.7 $52.6 $82.3 
The Company determines the fair values of the Company’s U.S. and International pension plan assets as follows:

•Mutual funds: The fair values of the investments included in the mutual funds asset class are determined using net asset value (“NAV”) provided by the administrator of the funds. The NAV is based on the closing price reported on the major market where the individual securities within the mutual fund are traded. The Company classifies mutual fund investments within Level 1 of the fair value hierarchy.
•Fixed income securities: The fair values of the investments included in the fixed income securities asset class are based on a compilation of primarily observable market information and/or broker quotes. The Company classifies fixed income securities investments within Level 2 of the fair value hierarchy.
•Common and collective funds: The fair values of the investments included in the common and collective funds asset class are determined using NAV provided by the administrator of the funds. The NAV is based on the value of the underlying assets owned by the common and collective fund, minus its liabilities, and then divided by the number of shares outstanding. The redemption frequencies for the investments in the common and collective funds asset class range from daily to monthly, with redemption notice periods that range from 2 to 10 business days. The Company classifies common and collective fund investments within Level 1 or Level 2 of the fair value hierarchy, depending on whether certain criteria are met. Some common and collective funds for which fair value is not readily determinable are recorded using NAV per share or its equivalent, as permitted by the practical expedient, provided by ASU No. 2015-07, Fair Value Measurement (Topic 820): Disclosures for Investments in Certain Entities That Calculate Net Asset per Share (or Its Equivalent) (the “ASU No. 2015-07 practical expedient”). These investments are not assigned a fair value hierarchy level.
•Hedge funds: The hedge funds asset class includes hedge funds that primarily invest in a grouping of equities, fixed income instruments, currencies, derivatives and/or commodities. The fair values of investments included in the hedge funds class are determined using NAV provided by the administrator of the funds. The hedge fund investments in the hedge funds asset class may employ leverage, generally can be sold on a quarterly or monthly basis and have redemption notice periods that range up to 90 business days. Hedge fund investments are generally recorded using NAV per share or its equivalent, as permitted by the ASU No. 2015-07 practical expedient, and are not assigned a fair value hierarchy level.
•Cash and cash equivalents: Cash and cash equivalents are measured at cost, which approximates fair value. The Company classifies cash and cash equivalents within Level 1 of the fair value hierarchy.
The fair values of the assets within the Company's U.S. and International pension plans at December 31, 2022 by asset category were as follows:
Quoted Prices in Active Markets for Identical AssetsSignificant Observable InputsSignificant Unobservable Inputs
TotalLevel 1Level 2Level 3
Mutual Funds (a):
Corporate Bonds$15.5 $15.5 $— — 
Government Bonds23.7 23.7 — — 
U.S. Large Cap Equity0.5 0.5 — — 
International Equities14.1 14.1 — — 
Emerging Markets International Equity1.4 1.4 — — 
U.S. Small/Mid Cap Equity0.8 0.8 — — 
Cash and Cash Equivalents1.7 1.7 — — 
Other (b)
4.7 4.7 — — 
Fixed Income Securities:
Government Bonds57.5 — 57.5 — 
Common and Collective Funds (a):
Corporate Bonds19.1 10.3 8.8 — 
Government Bonds21.1 4.7 16.4 — 
U.S. Large Cap Equity58.7 58.7 — — 
U.S. Small/Mid Cap Equity13.7 13.7 — — 
International Equities53.3 1.7 51.6 — 
Emerging Markets International Equity21.8 16.6 5.2 — 
Cash and Cash Equivalents1.5 1.5 — — 
Other (b)
1.5 — 1.5 — 
Cash and Cash Equivalents
14.4 14.4 — — 
Total Plan Assets in the fair value hierarchy$325.0 $184.0 $141.0 — 
Investments measured at Net Asset Value (c)
Common and Collective Funds17.3 
Hedge Funds— 
Total Plan Assets measured at Net Asset Value$17.3 
Total Plan Assets at Fair Value$342.3 $184.0 $141.0 — 

(a) The investments in mutual funds and common and collective funds are disclosed above within the respective underlying investments’ class (i.e., various equities, corporate bonds, government bonds and other investment classes), while the fair value hierarchy levels of the investments are based on the respective trust’s direct ownership unit of account.
(b) Comprised of investments in equities, fixed income instruments, currencies, derivatives and/or commodities.
(c) These investments are presented for reconciliation purposes, but are not required to be categorized in the fair value hierarchy as they are measured at fair value using the net asset per share or its equivalent, as permitted by the ASU No. 2015-07 practical expedient.
The fair values of the assets within the Company's U.S. and International pension plans at December 31, 2021 by asset category were as follows:
Quoted Prices in Active Markets for Identical AssetsSignificant Observable InputsSignificant Unobservable Inputs
TotalLevel 1Level 2Level 3
Mutual Funds (a):
Corporate Bonds$21.9 $21.9 $— $— 
Government Bonds25.4 25.4 — — 
U.S. Large Cap Equity0.7 0.7 — — 
International Equities15.8 15.8 — — 
Emerging Markets International Equity2.8 2.8 — — 
U.S. Small/Mid Cap Equity0.6 0.6 
Cash and Cash Equivalents0.3 0.3 — — 
Other (b)
1.2 1.2 — — 
Fixed Income Securities:
Government Bonds85.9 — 85.9 — 
Common and Collective Funds (a):
Corporate Bonds27.5 15.8 11.7 — 
Government Bonds42.1 5.1 37.0 — 
U.S. Large Cap Equity98.4 91.9 6.5 — 
U.S. Small/Mid Cap Equity19.4 19.4 — — 
International Equities74.8 3.3 71.5 — 
Emerging Markets International Equity27.5 20.4 7.1 — 
Cash and Cash Equivalents2.8 2.8 — — 
Other (b)
(0.4)— (0.4)— 
Cash and Cash Equivalents
7.6 7.6 — — 
Total Plan Assets in the fair value hierarchy$454.3 $235.0 $219.3 — 
Investments measured at Net Asset Value (c)
Common and Collective Funds19.7 
Hedge Funds— 
Total Plan Assets measured at Net Asset Value$19.7 
Total Plan Assets at Fair Value$474.0 $235.0 $219.3 — 

(a) The investments in mutual funds and common and collective funds are disclosed above within the respective underlying investments’ class (i.e., various equities, corporate bonds, government bonds and other investment classes), while the fair value hierarchy levels of the investments are based on the respective trust’s direct ownership unit of account.
(b) Comprised of investments in equities, fixed income instruments, currencies, derivatives and/or commodities.
(c) These investments are presented for reconciliation purposes, but are not required to be categorized in the fair value hierarchy as they are measured at fair value using the net asset per share or its equivalent, as permitted by the ASU No. 2015-07 practical expedient.

There were no transfers into or out of Level 3 assets in the Company's U.S. and International pension plan's fair value hierarchy during 2022 or 2021.
Estimated Future Benefit Payments:

The following benefit payments, which reflect expected future service, as appropriate, are expected to be paid out of the Company’s pension and other post-retirement benefit plans:
Total Pension BenefitsTotal Other Benefits
2023$47.1 $1.6 
2024$43.1 $1.4 
2025$41.4 $1.3 
2026$40.1 $1.2 
2027$39.4 $1.1 
Years 2028 to 2032$170.7 $4.2 

Contributions:
The Company’s intent is to fund at least the minimum contributions required to meet applicable federal employee benefit laws and local laws, or to directly pay benefit payments where appropriate. During the year ended December 31, 2022, $4.2 million and $0.7 million were contributed to the Company’s pension plans and other post-retirement benefit plans, respectively. During 2023, the Company expects to contribute approximately $1.2 million in the aggregate to its pension and other post-retirement benefit plans.
As a result of the CARES Act passed by the U.S. Congress in March 2020 to address the economic environment resulting from COVID-19, and in accordance with the Limited Relief for Pension Funding and Retirement Plan Distributions provision of such act, the Company deferred to 2021 approximately $11.8 million of contributions that were otherwise scheduled to be paid to its two qualified pension plans at different earlier dates during 2020. The deferral was in effect only for 2020 and under the CARES relief provisions the Company was required to pay the contributions by no later than January 4, 2021, including interest at the plans’ 2020 effective interest rate ("EIR") from the original due date to the actual payment date. The Company paid the contributions by the due date.