x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
__ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 13-3662953 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
One New York Plaza, New York, New York | 10004 |
(Address of principal executive offices) | (Zip Code) |
Large accelerated filer ¨ | Accelerated filer ¨ | Non-accelerated filer x | Smaller reporting company ¨ | |||
(Do not check if a smaller reporting company) |
PART I | ||
Item 1. | Business | |
Item 1A. | Risk Factors | |
Item 1B. | Unresolved Staff Comments | |
Item 2. | Properties | |
Item 3. | Legal Proceedings | |
Item 4. | Mine and Safety Disclosures | |
PART II | ||
Item 5. | Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | |
Item 6. | Selected Financial Data | |
Item 7. | Management's Discussion and Analysis of Financial Condition and Results of Operations | |
Item 7A. | Quantitative and Qualitative Disclosures About Market Risk | |
Item 8. | Financial Statements and Supplementary Data | |
Item 9. | Changes in and Disagreements with Accountants on Accounting and Financial Disclosure | |
Item 9A. | Controls and Procedures | |
Item 9B. | Other Information | |
PART III | ||
Item 10. | Directors, Executive Officers and Corporate Governance (intentionally omitted pursuant to General Instruction I(2)(c) of Form 10-K) | |
Item 11. | Executive Compensation (intentionally omitted pursuant to General Instruction I(2)(c) of Form 10-K) | |
Item 12. | Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters (intentionally omitted pursuant to General Instruction I(2)(c) of Form 10-K) | |
Item 13. | Certain Relationships and Related Transactions, and Director Independence (intentionally omitted pursuant to General Instruction I(2)(c) of Form 10-K) | |
Item 14. | Principal Accountant Fees and Services | |
PART IV | ||
Item 15. | Exhibits and Financial Statement Schedules | |
Index to Consolidated Financial Statements and Schedules | ||
Report of Independent Registered Public Accounting Firm (Consolidated Financial Statements) | ||
Financial Statements | ||
Financial Statement Schedule: Schedule II - Valuation and Qualifying Accounts | ||
Item 16. | Form 10-K Summary | |
Signatures | ||
Certifications | ||
Exhibits | ||
Segment | COSMETICS | HAIR | MEN'S GROOMING | BEAUTY TOOLS | FRAGRANCES | ANTI-PERSPIRANT DEODORANTS | SKIN CARE / BODY CARE | ||||||||
Owned | Licensed* | ||||||||||||||
Consumer | Revlon | Revlon ColorSilk | Revlon | Charlie | Mitchum | Gatineau | |||||||||
Almay | Llongueras* | Jean Naté | Natural Honey | ||||||||||||
SinfulColors | |||||||||||||||
Pure Ice | |||||||||||||||
Cutex | |||||||||||||||
Professional | CND | Revlon Professional | American Crew | ||||||||||||
Intercosmo | d:fi | ||||||||||||||
Orofluido | |||||||||||||||
UniqOne | |||||||||||||||
Creme of Nature | |||||||||||||||
Elizabeth Arden | Elizabeth Arden | Curve | Elizabeth Taylor | Visible Difference | |||||||||||
Giorgio Beverly Hills | Britney Spears | SUPERSTART | |||||||||||||
Halston | Ed Hardy | Prevage | |||||||||||||
Elizabeth Arden 5th Avenue | Jennifer Aniston | Eight Hour Cream | |||||||||||||
Elizabeth Arden Green Tea | Lucky Brand | Elizabeth Arden Pro | |||||||||||||
Red Door | Geoffrey Beene | Elizabeth Arden Ceramide | |||||||||||||
Always Red | Alfred Sung | ||||||||||||||
White Shoulders | Christina Aguilera | ||||||||||||||
PS Fine Cologne for Men | Juicy Couture | ||||||||||||||
John Varvatos | |||||||||||||||
Wildfox Couture | |||||||||||||||
Mariah Carey |
• | Revlon: The Company sells a broad range of cosmetics under its flagship Revlon brand, which are designed to fulfill consumer wants and needs and are principally priced in the upper range for large volume retailers. The Revlon brand is comprised of face makeup, including foundation, powder, blush and concealers; lip makeup, including lipstick, lip gloss and lip liner; eye makeup, including mascaras, eyeliners, eye shadows and brow products; and nail color and nail care lines. Revlon products include innovative formulas and attractive colors that appeal to a wide range of consumers. The following are the key franchises within the Revlon brand: |
◦ | Revlon ColorStay offers consumers a full range of products with long-wearing technology; |
◦ | Revlon PhotoReady products that are offered in face and eye makeup and are designed with innovative photochromatic pigments that bend and reflect light to give a flawless, airbrushed appearance in any light; |
◦ | Revlon Age Defying, which consists of face makeup for women in the over-35 age bracket, with ingredients to help reduce the appearance of fine lines and wrinkles; |
◦ | Revlon Super Lustrous, which is the Company’s flagship wax-based lipcolor and is offered in a wide variety of shades of lipstick and lip gloss; and |
◦ | Revlon Mascara, which consists of a collection of five mascaras, each with a distinct lash benefit including lash definition, length, volume, magnified volume and length, and a high impact all-in-one formula. |
• | Almay: The Company’s Almay brand consists of hypo-allergenic, dermatologist-tested, fragrance-free cosmetics and skin care products. The Almay brand is comprised of face makeup, including foundation, pressed powder, primer and concealer; eye makeup, including eye shadows, mascaras and eyeliners; lip makeup; and makeup removers. Key franchises within the Almay brand include Almay Smart Shade in face; Almay Intense i-Color in eye; and Almay Color + Care in lip. |
• | SinfulColors and Pure Ice: The Company’s SinfulColors and Pure Ice brands consist primarily of value-priced nail enamels, available in many bold, vivid and on-trend colors. |
• | Cutex: The Company's Cutex brand consists of a full range of nail care products, including nail polish remover, nail enamels, nail tools and hand and nail care treatments. |
• | Revlon Professional: The Company’s Revlon Professional brand includes hair color, hair care and hair treatment products that are distributed exclusively to professional salons, salon professionals and salon distributors and are sold in more than 80 countries. Revlon Professional is synonymous with innovation, fashion and technology to service the most creative salon professionals and their clients. Revlon Professional salon products include Revlonissimo NMT, Nutri Color Creme, Sensor Perm and Revlon Professional Equave. |
• | American Crew and d:fi: The Company sells men’s shampoos, conditioners, gels and other hair care and men's grooming products for use and sale by professional salons under the American Crew brand name. American Crew is the “Official Supplier to Men” of quality grooming products that provide the ultimate usage experience and enhance a man’s personal image. American Crew is the leading salon brand created specifically for men and is sold in more than 50 countries. The Company also sells unisex hair products under the d:fi brand, which is a value-priced full line of cleansing, conditioning and styling products. |
• | CND: The Company sells nail enhancement systems and nail color and treatment products and services for use by the professional nail salon industry under the CND brand name. CND-branded professional nail, hand and foot care products are sold in more than 80 countries. CND nail products include: |
◦ | CND Shellac brand 14+ day nail color system, which delivers 14+ days of flawless wear, superior color and mirror shine with zero dry-time and no nail damage. The CND Shellac system is a true innovation in chip-free, extended-wear nail color; and |
◦ | CND Vinylux weekly polish, a breakthrough nail polish that uses a patent-pending technology and lasts approximately a week. While ordinary polishes become brittle and deteriorate over time, CND Vinylux dries with exposure to natural light to a flawless finish and strengthens its resistance to chips over time. |
• | The Company also sells professional hair products under brand names such as Orofluido, UniqOne and Intercosmo. |
• | Elizabeth Arden: Elizabeth Arden produces skin care, color cosmetics and fragrances under the Elizabeth Arden brand, including Visible Difference, Ceramide, SUPERSTART, Prevage, Eight Hour Cream, Red Door, Green Tea, 5th Ave and Always Red. |
• | Heritage, Designer, and Celebrity Fragrances: Elizabeth Arden’s heritage fragrances include a number of core brands, including Britney Spears, Christina Aguilera, Elizabeth Taylor, Curve, Giorgio Beverly Hills, Ed Hardy, Jennifer Aniston, Lucky Brand, PS Fine Cologne for Men, Halston, Geoffrey Beene, Alfred Sung and White Shoulders. Designer fragrance brands include Juicy Couture, John Varvatos and Wildfox Couture. Celebrity fragrances include Mariah Carey. |
• | developing quality products with innovative performance features, shades, finishes, components and packaging; |
• | educating consumers and salon professionals about the benefits of the Company’s products; |
• | anticipating and responding to changing consumer and salon professional demands in a timely manner, including the timing of new product introductions and line extensions; |
• | offering attractively priced products relative to the product benefits provided; |
• | maintaining favorable brand recognition; |
• | generating competitive margins and inventory turns for its customers in both the Consumer and Professional segments by providing relevant products and executing effective pricing, incentive and promotional programs and marketing campaigns; |
• | ensuring product availability through effective planning and replenishment collaboration with retailers and salons; |
• | providing strong and effective advertising, marketing, promotion and merchandising support; |
• | leveraging e-commerce and mobile commerce initiatives; |
• | maintaining an effective sales force and distributor network; and |
• | obtaining and retaining sufficient retail display and floor space, optimal in-store positioning and effective presentation of its products at retail and in salons. |
• | limiting the Company’s ability to fund (including by obtaining additional financing) the costs and expenses of the execution of the Company’s business strategy (including activities related to the integration of the Elizabeth Arden business into the Company’s business), future working capital, capital expenditures, advertising, promotional and/or marketing expenses, new product development costs, purchases and reconfigurations of wall displays, acquisitions, acquisition integration costs, investments, restructuring programs and other general corporate purposes; |
• | requiring the Company to dedicate a substantial portion of its cash flow from operations to payments on Products Corporation’s indebtedness, thereby reducing the availability of the Company’s cash flow for the execution of the Company’s business strategy and for other general corporate purposes; |
• | placing the Company at a competitive disadvantage compared to its competitors that have less debt; |
• | exposing the Company to potential events of default (if not cured or waived) under the financial and operating covenants contained in Products Corporation’s various debt instruments; |
• | limiting the Company’s flexibility in responding to changes in its business and the industry in which it operates; and |
• | making the Company more vulnerable in the event of adverse economic conditions or a downturn in its business. |
• | borrow money; |
• | use assets as security in other borrowings or transactions; |
• | pay dividends on stock or purchase stock; |
• | sell assets and use the proceeds from such sales; |
• | enter into certain transactions with affiliates; |
• | make certain investments; |
• | prepay, redeem or repurchase specified indebtedness; and |
• | permit restrictions on the payment of dividends to Products Corporation by its subsidiaries. |
• | the acceptance of the Company's new product launches by, and sales of such new products to, the Company's customers may not be as high as the Company anticipates; |
• | the Company's marketing, promotional, advertising and/or pricing strategies for its new products may be less effective than planned and may fail to effectively reach the targeted consumer base or engender the desired consumption of the Company's products by consumers; |
• | the rate of purchases by the Company's consumers may not be as high as the Company anticipates; |
• | the Company's wall displays to showcase its new products may fail to achieve their intended effects; |
• | the Company may experience out-of-stocks and/or product returns exceeding its expectations as a result of the Company's new product launches or space reconfigurations or as a result of reductions in retail display space by the Company's customers; |
• | the Company's net sales may also be impacted by inventory management by its customers or changes in pricing, marketing, advertising and/or promotional strategies by its customers; |
• | the Company may incur costs exceeding its expectations as a result of the continued development and launch of new products, including, for example, unanticipated levels of research & development costs, advertising, promotional and/or marketing expenses, sales return expenses or other costs related to launching new products; |
• | the Company may experience a decrease in sales of certain of the Company's existing products as a result of newly-launched products, the impact of which could be exacerbated by shelf space limitations and/or any shelf space loss. (See also Item 1A. Risk Factors -"Competition in the cosmetics, hair and beauty care products business could have a material adverse effect on the Company's business, prospects, results of operations, financial condition and/or cash flows"). |
• | the Company's product pricing strategies for new product launches may not be accepted by its customers and/or its consumers, which may result in the Company's sales being less than it anticipates; |
• | the Company may experience a decrease in sales of certain of the Company's products as a result of counterfeit products and/or products sold outside of their intended territories; and/or |
• | delays or difficulties impacting the Company's ability, or the ability of the Company's suppliers, to timely manufacture, distribute and ship products or raw materials, as the case may be, displays or display walls in connection with launching new products, such as due to inclement weather conditions or other delays or difficulties such as those discussed under Item 1A. Risk Factors - "The Company depends on its Oxford, North Carolina facility for production of a substantial portion of the Company's products within the Consumer segment. Disruptions at this facility and/or at other Company or third party facilities at which the Company's products are manufactured for its Consumer, Elizabeth Arden and Professional segments, could affect the Company's business, prospects, results of operations, financial condition and/or cash flows,” could have a material adverse effect on the Company's ability to ship and deliver products to meet its customers’ reset deadlines. |
• | delaying the implementation of or revising certain aspects of the Company's business strategy, including the Company's plans to integrate the Elizabeth Arden business into the Company's business; |
• | reducing or delaying purchases of wall displays and/or expenses related to the Company's advertising, promotional and/or marketing activities; |
• | reducing or delaying capital spending; |
• | implementing new restructuring programs; |
• | refinancing Products Corporation's indebtedness; |
• | selling assets or operations; |
• | seeking additional capital contributions and/or loans from MacAndrews & Forbes, Revlon, the Company's other affiliates and/or third parties; |
• | selling additional debt securities of Products Corporation; or |
• | reducing other discretionary spending. |
• | developing quality products with innovative performance features, shades, finishes and packaging; |
• | educating consumers, retail customer and salon professionals about the benefits of the Company’s products; |
• | anticipating and responding to changing consumer, retail customer and salon professional demands in a timely manner, including as to the timing of new product introductions and line extensions; |
• | offering attractively priced products, relative to the product benefits provided; |
• | maintaining favorable brand recognition; |
• | generating competitive margins and inventory turns for the Company’s customers by providing relevant products and executing effective pricing, incentive and promotional programs and marketing and advertising campaigns; |
• | ensuring product availability through effective planning and replenishment collaboration with the Company's customers; |
• | providing strong and effective advertising, promotion, marketing and merchandising support; |
• | maintaining an effective sales force and distribution network; and |
• | obtaining and retaining sufficient display space, optimal in-store positioning and effective presentation of the Company’s products on-shelf. |
• | inability to fill customer orders accurately or on a timely basis, or at all; |
• | inability to process payments to vendors accurately or in a timely manner; |
• | disruption of the Company's internal control structure; |
• | inability to fulfill the Company's SEC or other governmental reporting requirements in a timely or accurate manner; |
• | inability to fulfill federal, state and local tax filing requirements in a timely or accurate manner; |
• | increased demands on management and staff time to the detriment of other corporate initiatives; and |
• | significant capital and operating expenditures. |
• | develop Elizabeth Arden's brand portfolio through branding, innovation and execution; |
• | identify and develop new and existing brands with the potential to become successful global brands; |
• | innovate and develop new products that are appealing to consumers; |
• | acquire or license additional brands or secure additional distribution arrangements and our ability to obtain the required financing for these agreements and arrangements; |
• | expand Elizabeth Arden's geographic presence to take advantage of opportunities in developed and emerging markets; |
• | continue to expand Elizabeth Arden's distribution channels within existing geographies to increase trade presence, brand recognition and sales; |
• | expand Elizabeth Arden's trade presence through alternative distribution channels; |
• | expand margins through sales growth, the development of higher margin products, and overhead and supply chain integration and efficiency initiatives; |
• | effectively manage capital investments and working capital to improve the generation of cash flow; and |
• | execute any acquisitions quickly and efficiently and integrate new businesses successfully. |
Location | Segment | Use | Approximate Floor Space Sq. Ft. | ||||
Oxford, North Carolina | Consumer | Manufacturing, warehousing, distribution and office (a) | 1,012,000 | ||||
Jacksonville, Florida | Professional | Manufacturing, warehousing, distribution and office | 725,000 | ||||
Salem, Virginia | Elizabeth Arden | Warehousing and distribution (leased) | 482,000 | ||||
Roanoke, Virginia | Elizabeth Arden | Warehousing and distribution (leased) | 400,000 | ||||
Tarragona, Spain | Professional | Manufacturing, warehousing, distribution and office | 300,000 | ||||
Mississauga, Canada | Consumer | Warehousing, distribution and office (leased) | 195,000 | ||||
Queretaro, Mexico | Professional | Manufacturing, warehousing, distribution and office | 128,000 | ||||
Canberra, Australia | Consumer | Warehousing and distribution | 125,000 | ||||
Edison, New Jersey | Consumer | Research and office (leased) | 123,000 | ||||
Rietfontein, South Africa | Consumer | Warehousing, distribution and office (leased) | 120,000 | ||||
Isando, South Africa | Consumer | Manufacturing, warehousing, distribution and office | 94,000 | ||||
Stone, United Kingdom | Consumer | Warehousing and distribution (leased) | 92,000 | ||||
Bologna, Italy | Professional | Manufacturing, warehousing, distribution and office | 80,000 |
(a) | Property subject to liens under the 2016 Credit Agreements. |
Year Ended December 31, | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Statement of Operations Data: | 2016(a) | 2015(b) | 2014(c) | 2013(d) | 2012(e) | |||||||||||||||
Net sales | $ | 2,334.0 | $ | 1,914.3 | $ | 1,941.0 | $ | 1,494.7 | $ | 1,396.4 | ||||||||||
Gross profit | 1,416.9 | 1,246.5 | 1,272.7 | 949.6 | 902.6 | |||||||||||||||
Selling, general and administrative expenses | 1,151.6 | 993.5 | 999.7 | 723.6 | 663.3 | |||||||||||||||
Acquisition and integration costs | 43.2 | 8.0 | 6.4 | 25.4 | — | |||||||||||||||
Restructuring charges and other, net | 34.0 | 10.5 | 21.3 | 3.5 | 20.5 | |||||||||||||||
Impairment charge | 23.4 | 9.7 | — | — | — | |||||||||||||||
Operating income | 164.7 | 224.8 | 245.3 | 197.1 | 218.8 | |||||||||||||||
Interest expense | 105.2 | 83.3 | 84.4 | 78.6 | 85.3 | |||||||||||||||
Amortization of debt issuance costs | 6.8 | 5.7 | 5.5 | 3.5 | 3.4 | |||||||||||||||
Loss on early extinguishment of debt, net | 16.9 | — | 2.0 | 29.7 | — | |||||||||||||||
Foreign currency losses, net | 18.5 | 15.7 | 25.0 | 3.7 | 2.8 | |||||||||||||||
Provision for income taxes | 28.7 | 54.4 | 81.2 | 48.6 | 44.8 | |||||||||||||||
(Loss) income from continuing operations, net of taxes | (10.8 | ) | 65.3 | 46.0 | 32.0 | 81.3 | ||||||||||||||
(Loss) income from discontinued operations, net of taxes | (4.9 | ) | (3.2 | ) | 1.3 | (30.4 | ) | (10.1 | ) | |||||||||||
Net (loss) income | (15.7 | ) | 62.1 | 47.3 | 1.6 | 71.2 |
Year Ended December 31, | ||||||||||||||||||||
(in millions) | ||||||||||||||||||||
Balance Sheet Data: | 2016(a) | 2015 as adjusted(b)(i) | 2014 as adjusted(c)(i) | 2013 as adjusted(d)(i) | 2012 as adjusted(e)(i) | |||||||||||||||
Total current assets | $ | 1,252.9 | $ | 926.3 | $ | 820.8 | $ | 828.7 | $ | 567.5 | ||||||||||
Total non-current assets | 1,885.8 | 1,136.9 | 1,185.5 | 1,238.3 | 717.8 | |||||||||||||||
Total assets | $ | 3,138.7 | $ | 2,063.2 | $ | 2,006.3 | $ | 2,067.0 | $ | 1,285.3 | ||||||||||
Total current liabilities(f) | $ | 708.5 | $ | 515.0 | $ | 464.9 | $ | 552.6 | $ | 441.6 | ||||||||||
Total other non-current liabilities | 2,937.0 | 2,039.8 | 2,098.4 | 2,030.9 | 1,420.4 | |||||||||||||||
Total liabilities | $ | 3,645.5 | $ | 2,554.8 | $ | 2,563.3 | $ | 2,583.5 | $ | 1,862.0 | ||||||||||
Total indebtedness | $ | 2,692.0 | $ | 1,825.0 | $ | 1,845.6 | $ | 1,905.8 | $ | 1,208.5 | ||||||||||
Total stockholder's deficiency | (506.8 | ) | (491.6 | ) | (557.0 | ) | (516.5 | ) | (576.7 | ) |
(a) | Comparability of results from continuing operations for 2016 are affected by: (1) $43.2 million of acquisition and integration costs incurred during 2016 primarily related to the Elizabeth Arden Acquisition; (2) $34.0 million in restructuring charges and other, net, primarily related to the EA Integration Restructuring Program (See Note 3, “Restructuring Charges,” to the Consolidated Financial Statements in this Form 10-K); (3) a $23.4 million non-cash impairment charge related to goodwill and acquired identifiable intangible assets for the Company's Other reporting unit (see Note 8, "Goodwill and Intangible Assets, Net," to the Consolidated Financial Statements in this Form 10-K); and (4) a $16.9 million aggregate loss on the early extinguishment of debt in connection with Products Corporation entering into the 2016 Senior Credit Facilities and the corresponding complete refinancing and repayment of Products Corporation's Old Term Loan Facility. |
(b) | Comparability of results from continuing operations for 2015 are affected by: (1) a $20.7 million pension lump sum settlement charge related to a one-time lump sum payment option offered to certain former employees (See Note 14, "Savings Plan, Pension and Post-Retirement Benefits," to the Consolidated Financial Statements in this Form 10-K); (2) a decrease in the provision for income taxes primarily driven by a non-cash benefit related to the net reduction of the Company's deferred tax valuation allowance on its net deferred tax assets for certain foreign jurisdictions (See Note 16, "Income Taxes," to the Consolidated Financial Statements in this Form 10-K); (3) $10.5 million in restructuring charges and other, net, primarily related to the 2015 Efficiency Program (See Note 3, “Restructuring Charges” to the Consolidated Financial Statements in this Form 10-K); (4) a $9.7 million non-cash goodwill impairment charge related to goodwill for the Company's Global Color Brands reporting unit (see Note 8, "Goodwill and Intangible Assets, Net," to the Consolidated Financial Statements in this Form 10-K); and (5) $8.0 million of acquisition and integration costs incurred during 2015 primarily related to costs incurred in connection with the 2015 CBB Acquisition and the 2014 Integration Program. |
(c) | Comparability of results from continuing operations for 2014 are affected by: (1) $21.3 million in restructuring charges and other, net, primarily related to the 2014 Integration Program (See Note 3, “Restructuring Charges,” to the Consolidated Financial Statements in this Form 10-K); (2) $6.4 million of acquisition and integration costs incurred during 2014 (see note (d)(3) below) related to the Colomer Acquisition; and (3) a $6.0 million foreign currency loss recognized in the second quarter of 2014 as a result of the re-measurement of Revlon Venezuela’s monetary assets and liabilities (See Note 1, “Description of Business and Summary of Significant Accounting Policies,” to the Consolidated Financial Statements in this Form 10-K). |
(d) | Comparability of results from continuing operations for 2013 are affected by: (1) a $29.7 million aggregate loss on the early extinguishment of debt primarily in connection with Products Corporation’s issuance in February 2013 of $500.0 million aggregate principal amount of its 5¾% Senior Notes due February 15, 2021, of which Products Corporation used $491.2 million of the net proceeds (net of underwriters' fees) to repay and redeem all of the $330 million outstanding aggregate principal amount of its previous 9¾% Senior Secured Notes due November 2015 (the “9¾% Senior Secured Notes” and such transaction being the “2013 Senior Notes Refinancing”); (2) a $26.4 million gain from insurance proceeds due to the settlement of the Company's claims for business interruption and property losses as a result of the June 2011 fire at the Company's facility in Venezuela; (3) $25.4 million of acquisition and integration costs incurred in 2013 (see note (c)(2) above) related to the Colomer Acquisition; and (4) $21.4 million in restructuring and related charges, of which $20.0 million related to the Company's exit of its direct manufacturing, warehousing and sales business operations in mainland China within the Consumer segment in 2013 and is reflected in loss from discontinued operations, net of taxes. (See Note 3, “Restructuring Charges,” and Note 4, "Discontinued Operations," to the Consolidated Financial Statements in this Form 10-K). |
(e) | Comparability of results from continuing operations for 2012 are affected by: (1) $24.1 million in restructuring and related charges recorded as a result of the September 2012 Program (See Note 3, "Restructuring Charges," of the Consolidated Financial Statements in this Form 10-K); and (2) an increase in net income driven by a non-cash benefit of $15.8 million related to the reduction of the Company’s deferred tax valuation allowance on its net deferred tax assets for certain jurisdictions in the U.S. at December 31, 2012. |
(f) | Total current liabilities at December 31, 2013 included $58.4 million related to a loan that was outstanding to various third parties that was prepaid in May 2014 (the "Non-Contributed Loan"). |
(i) | Adjusted as a result of the adoption of certain accounting pronouncements beginning on January 1, 2016. See Note 1, "Description of Business and Summary of Significant Accounting Policies - Recently Adopted Accounting Pronouncements," for details of these adjustments for 2015. For 2014, 2013 and 2012, total current and non-current assets, total current and other non-current liabilities and total indebtedness were adjusted as follows: |
Consolidated Balance Sheet | Total as reported at 12/31/2014 | Adjustment for ASU No. 2015-17 | Adjustment for ASU No. 2015-3 | Total as adjusted at 12/31/2014 | ||||||||||||
Total current assets | $ | 879.2 | $ | (58.4 | ) | $ | — | $ | 820.8 | |||||||
Total non-current assets | 1,152.0 | 58.4 | (24.9 | ) | 1,185.5 | |||||||||||
Total current liabilities | 464.9 | — | — | 464.9 | ||||||||||||
Total other non-current liabilities | 2,123.3 | — | (24.9 | ) | 2,098.4 | |||||||||||
Total indebtedness | 1,870.5 | — | (24.9 | ) | 1,845.6 | |||||||||||
Consolidated Balance Sheet | Total as reported at 12/31/2013 | Adjustment for ASU No. 2015-17 | Adjustment for ASU No. 2015-3 | Total as adjusted at 12/31/2013 | ||||||||||||
Total current assets | $ | 893.8 | $ | (65.1 | ) | $ | — | $ | 828.7 | |||||||
Total non-current assets | 1,203.0 | 65.1 | (29.8 | ) | 1,238.3 | |||||||||||
Total current liabilities | 552.6 | — | — | 552.6 | ||||||||||||
Total other non-current liabilities | 2,060.7 | — | (29.8 | ) | 2,030.9 | |||||||||||
Total indebtedness | 1,935.6 | — | (29.8 | ) | 1,905.8 | |||||||||||
Consolidated Balance Sheet | Total as reported at 12/31/2012 | Adjustment for ASU No. 2015-17 | Adjustment for ASU No. 2015-3 | Total as adjusted at 12/31/2012 | ||||||||||||
Total current assets | $ | 616.0 | $ | (48.5 | ) | $ | — | $ | 567.5 | |||||||
Total non-current assets | 681.7 | 48.5 | (12.4 | ) | 717.8 | |||||||||||
Total current liabilities | 441.6 | — | — | 441.6 | ||||||||||||
Total other non-current liabilities | 1,432.8 | — | (12.4 | ) | 1,420.4 | |||||||||||
Total indebtedness | 1,220.9 | — | (12.4 | ) | 1,208.5 |
• | Overview; |
• | Operating Segments; |
• | Results of Operations; |
• | Financial Condition, Liquidity and Capital Resources; |
• | Disclosures about Contractual Obligations and Commercial Commitments; |
• | Off-Balance Sheet Transactions (there are none); |
• | Discussion of Critical Accounting Policies; |
• | Recently Adopted Accounting Pronouncements; |
• | Recently Issued Accounting Standards or Updates Not Yet Effective; and |
• | Inflation. |
• | $158.1 million of higher SG&A expenses, primarily driven by the inclusion of the SG&A expenses of the Elizabeth Arden segment, commencing on and after the Elizabeth Arden Acquisition Date; |
• | $35.2 million increase in acquisition and integration costs, primarily related to the Elizabeth Arden Acquisition; |
• | $23.5 million increase in restructuring charges and other, net, in 2016, which primarily included $31.7 million in restructuring charges recognized in 2016 related to the EA Integration Restructuring Program, as compared to $9.5 million of restructuring charges and other, net, recognized in 2015, primarily due to the 2015 Efficiency Program; |
• | a $23.4 million non-cash impairment loss on goodwill and acquired intangible assets for the Company's Other reporting unit recognized in 2016, as compared to a $9.7 million non-cash impairment loss on goodwill for the Company's Global Color Brands reporting unit recognized in 2015; |
• | a $21.9 million increase in interest expense incurred during 2016 primarily as a result of the debt-related transactions completed during the third quarter of 2016 in connection with financing the Elizabeth Arden Acquisition and the complete refinancing of the Old Term Loan Facility, as discussed below; and |
• | a $16.9 million aggregate loss on the early extinguishment of debt recognized in the third quarter of 2016 as a result of the complete refinancing of the Old Term Loan Facility in connection with the Elizabeth Arden Acquisition; |
• | $170.4 million of higher gross profit in 2016, primarily due to the inclusion of gross profit of the Elizabeth Arden segment, commencing on and after the Elizabeth Arden Acquisition Date, partially offset by lower gross profit within the Consumer segment; and |
• | a $25.7 million decrease in the provision for income taxes recognized in 2016, primarily due to lower pre-tax income for 2016, as compared to 2015, partially offset by the impairment in 2016 related to the Company's Other segment for which there was no tax benefit and the tax benefit realized in 2015 for the reduction of the deferred tax valuation allowance that did not exist in 2016. |
• | The Consumer segment is comprised of the Company's consumer brands, which primarily include Revlon, Almay, SinfulColors and Pure Ice in color 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 large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, the Internet/e-commerce, television shopping, department stores, one-stop shopping beauty retailers, specialty cosmetics stores and perfumeries in the U.S. and internationally. The Consumer segment also includes a skin care line under the Natural Honey brand and a hair color line under the Llongueras brand (licensed from a third party) sold to large volume retailers and other retailers, primarily in Spain, which were acquired as part of the Colomer Acquisition. In October 2015 and in May 2016, the Company acquired Cutex businesses in the U.S. and in certain international territories and related assets, respectively. The results of operations relating to the sales of Cutex nail care products are included within the Consumer segment. |
• | The Professional segment is comprised primarily of the Company's professional brands, which include Revlon Professional in hair color and hair care; CND-branded products in nail polishes and nail enhancements; and American Crew in men’s grooming products, all of which are sold worldwide to professional salons. The Company’s principal customers for its professional products include hair and nail salons and distributors to professional salons in the U.S. and internationally. The Professional segment also includes a multi-cultural hair care line consisting of Creme of Nature hair care products sold to professional salons, large volume retailers and other retailers, primarily in the U.S. |
• | The Elizabeth Arden segment includes the operating results of the Elizabeth Arden business and related purchase accounting for the Company's September 2016 Elizabeth Arden Acquisition. Elizabeth Arden is a global prestige beauty products company with an iconic portfolio of prestige fragrance, skin care and cosmetic brands, which includes the Elizabeth Arden skin care brands, color cosmetics and fragrances; designer fragrances such as Juicy Couture, John Varvatos and Wildfox Couture; heritage fragrances such as Curve, Elizabeth Taylor, Britney Spears and Christina Aguilera; and celebrity fragrances. |
• | The Other segment primarily includes the operating results of the CBBeauty Group and certain of its related entities, which the Company acquired in April 2015. CBB develops, markets and distributes fragrances and other beauty products under various celebrity, lifestyle and fashion brands licensed from third parties, principally through department stores and selective distribution in international territories. |
Net Sales | Segment Profit | |||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | Change | XFX Change (a) | Year Ended December 31, | Change | XFX Change (a) | |||||||||||||||||||||||||||||||||||||||
2016 | 2015 | $ | % | $ | % | 2016 | 2015 | $ | % | $ | % | |||||||||||||||||||||||||||||||||
Consumer | $ | 1,389.8 | $ | 1,414.8 | $ | (25.0 | ) | (1.8 | )% | $ | 9.7 | 0.7 | % | $ | 349.2 | $ | 360.2 | $ | (11.0 | ) | (3.1 | )% | $ | (8.3 | ) | (2.3 | )% | |||||||||||||||||
Professional | 476.5 | 471.1 | 5.4 | 1.1 | % | 11.1 | 2.4 | % | 99.4 | 103.9 | (4.5 | ) | (4.3 | )% | (3.5 | ) | (3.4 | )% | ||||||||||||||||||||||||||
Elizabeth Arden | 441.4 | — | — | 441.4 | N.M. | 441.4 | N.M. | 68.2 | — | 68.2 | N.M. | 68.2 | N.M. | |||||||||||||||||||||||||||||||
Other | 26.3 | 28.4 | (2.1 | ) | (7.4 | )% | 1.4 | 4.9 | % | $ | (2.7 | ) | $ | 1.4 | (4.1 | ) | (292.9 | )% | (4.3 | ) | (307.1 | )% | ||||||||||||||||||||||
Total | $ | 2,334.0 | $ | 1,914.3 | $ | 419.7 | 21.9 | % | $ | 463.6 | 24.2 | % | $ | 514.1 | $ | 465.5 | $ | 48.6 | 10.4 | % | $ | 52.1 | 11.2 | % |
Net Sales | Segment Profit | ||||||||||||||||||||||||||||||||||||||||||
Year Ended December 31, | Change | XFX Change (a) | Year Ended December 31, | Change | XFX Change (a) | ||||||||||||||||||||||||||||||||||||||
2015 | 2014 | $ | % | $ | % | 2015 | 2014 | $ | % | $ | % | ||||||||||||||||||||||||||||||||
Consumer | $ | 1,414.8 | $ | 1,438.3 | $ | (23.5 | ) | (1.6 | )% | $ | 53.9 | 3.7 | % | $ | 360.2 | $ | 339.4 | $ | 20.8 | 6.1 | % | $ | 30.0 | 8.8 | % | ||||||||||||||||||
Professional | 471.1 | 502.7 | (31.6 | ) | (6.3 | )% | 12.2 | 2.4 | % | 103.9 | 104.8 | (0.9 | ) | (0.9 | )% | 2.8 | 2.7 | % | |||||||||||||||||||||||||
Elizabeth Arden | — | — | — | N.M. | — | N.M. | — | — | — | N.M. | — | N.M. | |||||||||||||||||||||||||||||||
Other | 28.4 | — | 28.4 | N.M. | 28.4 | N.M. | 1.4 | — | 1.4 | N.M. | 1.4 | N.M. | |||||||||||||||||||||||||||||||
Total | $ | 1,914.3 | $ | 1,941.0 | $ | (26.7 | ) | (1.4 | )% | $ | 94.5 | 4.9 | % | $ | 465.5 | $ | 444.2 | $ | 21.3 | 4.8 | % | $ | 34.2 | 7.7 | % |
Year Ended December 31, | Change | XFX Change (a) | |||||||||||||||||||
2016 | 2015 | $ | % | $ | % | ||||||||||||||||
Consumer | |||||||||||||||||||||
North America | $ | 882.4 | $ | 921.3 | $ | (38.9 | ) | (4.2 | )% | $ | (36.9 | ) | (4.0 | )% | |||||||
International | 507.4 | 493.5 | 13.9 | 2.8 | % | 46.6 | 9.4 | % | |||||||||||||
Professional | |||||||||||||||||||||
North America | $ | 204.9 | $ | 201.8 | $ | 3.1 | 1.5 | % | $ | 3.9 | 1.9 | % | |||||||||
International | 271.6 | 269.3 | 2.3 | 0.9 | % | 7.2 | 2.7 | % | |||||||||||||
Elizabeth Arden | |||||||||||||||||||||
North America | $ | 274.8 | $ | — | $ | 274.8 | N.M. | $ | 274.8 | N.M. | |||||||||||
International | 166.6 | — | $ | 166.6 | N.M. | $ | 166.6 | N.M. | |||||||||||||
Other | |||||||||||||||||||||
North America | $ | — | $ | — | $ | — | N.M. | $ | — | — | % | ||||||||||
International | 26.3 | 28.4 | (2.1 | ) | (7.4 | )% | 1.4 | 4.9 | % | ||||||||||||
Total Net Sales | $ | 2,334.0 | $ | 1,914.3 | $ | 419.7 | 21.9 | % | $ | 463.6 | 24.2 | % |
Year Ended December 31, | Change | XFX Change (a) | |||||||||||||||||||
2015 | 2014 | $ | % | $ | % | ||||||||||||||||
Consumer | |||||||||||||||||||||
North America | $ | 921.3 | $ | 900.7 | $ | 20.6 | 2.3 | % | $ | 29.3 | 3.3 | % | |||||||||
International | 493.5 | 537.6 | (44.1 | ) | (8.2 | )% | 24.6 | 4.6 | % | ||||||||||||
Professional | |||||||||||||||||||||
North America | $ | 201.8 | $ | 214.3 | $ | (12.5 | ) | (5.8 | )% | $ | (8.8 | ) | (4.1 | )% | |||||||
International | 269.3 | 288.4 | (19.1 | ) | (6.6 | )% | 21.0 | 7.3 | % | ||||||||||||
Elizabeth Arden | |||||||||||||||||||||
North America | $ | — | $ | — | $ | — | N.M. | $ | — | N.M. | |||||||||||
International | — | — | — | N.M. | $ | — | N.M. | ||||||||||||||
Other | |||||||||||||||||||||
North America | $ | — | $ | — | $ | — | — | % | $ | — | — | % | |||||||||
International | 28.4 | — | 28.4 | N.M. | 28.4 | N.M. | |||||||||||||||
Total Net Sales | $ | 1,914.3 | $ | 1,941.0 | $ | (26.7 | ) | (0.2 | )% | $ | 94.5 | (51.9 | )% |
Year Ended December 31, | Change | ||||||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||||
Gross profit | $ | 1,416.9 | $ | 1,246.5 | $ | 1,272.7 | $ | 170.4 | $ | (26.2 | ) | ||||||||
Percentage of net sales | 60.7 | % | 65.1 | % | 65.6 | % | (4.4 | )% | (0.5 | )% |
• | the inclusion of gross profit from the Elizabeth Arden Acquisition, which increased gross profit by $222.2 million, however decreased gross profit as a percentage of net sales by 2.4 percentage points; |
• | favorable volume, which increased gross profit by $25.8 million, with no impact on gross profit as a percentage of net sales; and |
• | the favorable impact in 2016 related to the portion of the 2015 pension lump sum settlement charge recorded in the fourth quarter of 2015 within cost of sales in the amount of $10.5 million, which did not recur in 2016 and increased gross profit as a percentage of net sales by 0.3 percentage points; |
• | unfavorable foreign currency fluctuations, which decreased gross profit by $38.7 million and decreased gross profit as a percentage of net sales by 1.0 percentage point; |
• | higher promotional allowances, which decreased gross profit by $23.8 million and decreased gross profit as a percentage of net sales by 0.6 percentage points; |
• | additional inventory costs as a result of the recognition of an increase in the fair value of inventory acquired in the Elizabeth Arden Acquisition, which reduced gross profit by $20.7 million and reduced gross profit as a percentage of net sales by 0.5 percentage points; and |
• | unfavorable product mix, which decreased gross profit by $17.7 million and decreased gross profit as a percentage of net sales by 0.5 percentage points. |
• | unfavorable foreign currency fluctuations, which reduced gross profit by $90.0 million and reduced gross profit as a percentage of net sales by 0.5 percentage points; |
• | the unfavorable impact of a portion of the 2015 pension lump sum settlement charge recorded in the fourth quarter of 2015 within cost of sales in the amount of $10.5 million, which decreased gross profit by as a percentage of net sales by 0.6 percentage points. |
• | the effects of the favorable sales returns accrual adjustments made in 2015 and 2014, due to lower expected discontinued products in the future related to the Company's strategy to focus on fewer, bigger and better innovations, which 2014 adjustment was $4.1 million more favorable than the 2015 adjustment, and which had no impact on gross profit as a percentage of net sales; |
• | favorable volume, which increased gross profit by $67.8 million and increased gross profit as a percentage of net sales by 0.2 percentage points; and |
• | lower manufacturing and freight costs as a result of supply chain cost reduction initiatives, which increased gross profit by $9.5 million and increased gross profit as a percentage of net sales by 0.5 percentage points. |
Year Ended December 31, | Change | ||||||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||||
SG&A expenses | $ | 1,151.6 | $ | 993.5 | $ | 999.7 | $ | 158.1 | $ | (6.2 | ) |
• | the inclusion of SG&A expenses in the Elizabeth Arden segment as a result of the Elizabeth Arden Acquisition, commencing on and after the Elizabeth Arden Acquisition Date, which contributed $184.2 million to the increase in SG&A expenses; and |
• | $6.5 million of higher general and administrative expenses in 2016, primarily due to higher compensation due to changes in senior executive management, higher professional and legal fees and a total of $6.5 million in gains recognized in 2015 related to the sales of certain non-core assets, partially offset by $10.2 million of charges recognized in 2015 related to a pension lump sum settlement recorded as a component of SG&A expense and lower non-restructuring severance; |
• | $19.8 million of favorable FX impacts; and |
• | a $24.3 million decrease in brand support expenses for lower performing brands, primarily within the Consumer segment. |
• | $72.2 million of favorable impact due to foreign currency fluctuations in 2015; |
• | $16.2 million of higher brand support expenses for the Company's brands within the Consumer and Professional segments in 2015; and |
• | $49.3 million of higher general and administrative expenses in 2015, primarily due to: |
Year Ended December 31, | Change | ||||||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||||
Acquisition Costs | $ | 21.5 | $ | 5.9 | $ | 0.5 | $ | 15.6 | $ | 5.4 | |||||||||
Integration Costs | 21.7 | 2.1 | 5.9 | 19.6 | (3.8 | ) | |||||||||||||
Total acquisition and integration costs | $ | 43.2 | $ | 8.0 | $ | 6.4 | $ | 35.2 | $ | 1.6 |
Year Ended December 31, | Change | ||||||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||||
Restructuring charges and other, net | $ | 34.0 | $ | 10.5 | $ | 21.3 | $ | 23.5 | $ | (10.8 | ) |
Year Ended December 31, | Change | ||||||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||||
Interest expense | $ | 105.2 | $ | 83.3 | $ | 84.4 | $ | 21.9 | $ | (1.1 | ) |
Year Ended December 31, | Change | ||||||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||||
Loss on early extinguishment of debt | $ | 16.9 | $ | — | $ | 2.0 | $ | 16.9 | $ | (2.0 | ) |
Year Ended December 31, | Change | ||||||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||||
Foreign currency losses (gains), net | $ | 18.5 | $ | 15.7 | $ | 25.0 | $ | 2.8 | $ | (9.3 | ) |
• | a $2.1 million gain in 2016, compared to a $3.8 million gain in 2015 related to the Company’s foreign currency forward exchange contracts; and |
• | the net unfavorable impact of the revaluation of certain U.S. Dollar denominated intercompany payables and foreign currency denominated receivables. |
• | a $6.0 million foreign currency loss recognized in 2014 as a result of the re-measurement of Revlon Venezuela's balance sheet, as compared to a $1.9 million foreign currency loss recognized in 2015; |
• | a $3.8 million gain in 2015, compared to a $0.5 million gain in 2014, related to the Company's foreign currency forward exchange contracts; and |
• | the favorable impact of the revaluation of certain U.S. Dollar and foreign currency denominated intercompany payables during 2015, as compared to 2014. |
Year Ended December 31, | Change | ||||||||||||||||||
2016 | 2015 | 2014 | 2016 vs. 2015 | 2015 vs. 2014 | |||||||||||||||
Provision for income taxes | $ | 28.7 | $ | 54.4 | $ | 81.2 | $ | (25.7 | ) | $ | (26.8 | ) |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net cash provided by operating activities | $ | 114.2 | $ | 155.3 | $ | 174.0 | |||||
Net cash used in investing activities | (1,087.5 | ) | (83.8 | ) | (52.1 | ) | |||||
Net cash provided by (used in) financing activities | 835.8 | (12.1 | ) | (75.1 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (2.6 | ) | (7.8 | ) | (15.6 | ) |
• | cash proceeds received in connection with the 2016 Term Loan Facility, in the aggregate principal amount of $1,800.0 million, or $1,791.0 million, net of discounts; and |
• | cash proceeds received in connection with issuance of the 6.25% Senior Notes, in the aggregate principal amount of $450.0 million; |
• | $658.6 million of cash used to repay all of the aggregate principal balance outstanding under Products Corporation’s 2011 Term Loan; |
• | $651.4 million of cash used to repay all of the aggregate principal balance outstanding under Products Corporation’s Old Acquisition Term Loan; |
• | (i) $45.0 million of fees paid in connection with completing the 2016 Term Loan Facility; (ii) $5.7 million of fees paid in connection with completing the 2016 Revolving Credit Facility; and (iii) $10.9 million of fees paid in connection with issuing Products Corporation's 6.25% Senior Notes; and |
• | a $23.2 million required excess cash flow prepayment made under the Old Term Loan Facility, as discussed below. |
• | a $24.6 million required excess cash flow prepayment made under the Old Term Loan Facility; and |
• | $6.8 million of scheduled amortization payments on the Old Acquisition Term Loan; |
• | $23.0 million increase in short-term borrowings and overdrafts. |
• | the repayment in May 2014 of the $58.4 million aggregate principal amount outstanding of the Non-Contributed Loan; |
• | $7.0 million of scheduled amortization payments on the Old Acquisition Term Loan; |
• | $4.7 million decrease in short-term borrowings and overdrafts; and |
• | the payment of $1.8 million of financing costs primarily related to a February 2014 amendment to the Old Term Loan Facility. |
Period | Optional Redemption Premium Percentage | ||
2019 | 104.688 | % | |
2020 | 103.125 | % | |
2021 | 101.563 | % | |
2022 and thereafter | 100.000 | % |
Year | Percentage | ||
2017 | 102.875 | % | |
2018 | 101.438 | % | |
2019 and thereafter | 100.000 | % |
• | incur or guarantee additional indebtedness (“Limitation on Debt”); |
• | pay dividends, make repayments on indebtedness that is subordinated in right of payment to the 5.75% Senior Notes and make other “restricted payments” (“Limitation on Restricted Payments”); |
• | make certain investments; |
• | create liens on their assets to secure debt; |
• | enter into transactions with affiliates; |
• | merge, consolidate or amalgamate with another company (“Successor Company”); |
• | transfer and sell assets (“Limitation on Asset Sales”); and |
• | permit restrictions on the payment of dividends by Products Corporation’s subsidiaries (“Limitation on Dividends from Subsidiaries”). |
Payments Due by Period (dollars in millions) | ||||||||||||||||||||
Contractual Obligations | Total | Less than 1 year | 1-3 years | 4-5 years | After 5 years | |||||||||||||||
Long-term debt, including current portion (a) | $ | 2,746.0 | $ | 18.1 | $ | 36.2 | $ | 536.2 | $ | 2,155.5 | ||||||||||
Interest on long-term debt (b) | 865.8 | 141.1 | 268.3 | 248.6 | 207.8 | |||||||||||||||
Capital lease obligations | 3.5 | 1.9 | 1.5 | 0.1 | — | |||||||||||||||
Operating leases (c) | 216.0 | 38.9 | 64.7 | 41.8 | 70.6 | |||||||||||||||
Purchase obligations (d) | 287.5 | 252.2 | 22.5 | 10.9 | 1.9 | |||||||||||||||
Other long-term obligations (e) | 77.4 | 49.4 | 17.5 | 5.9 | 4.6 | |||||||||||||||
Total contractual obligations | $ | 4,196.2 | $ | 501.6 | $ | 410.7 | $ | 843.5 | $ | 2,440.4 |
(a) | Consists primarily of (i) the $1,795.5 million aggregate principal amount outstanding under the 2016 Term Loan Facility as of December 31, 2016; (ii) the $450.0 million aggregate principal amount outstanding under the 6.25% Senior Notes as of December 31, 2016; and (iii) the $500.0 million aggregate principal amount outstanding under the 5.75% Senior Notes as of December 31, 2016. |
(b) | Consists of interest through the respective maturity dates on the outstanding debt discussed in (a) above; based on interest rates under such debt agreements as of December 31, 2016. |
(c) | Included in the obligations for operating leases as of December 31, 2016 is the lease for the Company's headquarters in New York City, which includes minimum lease payments in the aggregate of approximately $70 million over the 15-year term; a leased distribution and office facility in Roanoke, Virginia; and a leased warehouse and returns processing facility in Salem, Virginia. The Company acquired these facilities in Virginia as part of the Elizabeth Arden Acquisition. |
(d) | Consists of purchase commitments for finished goods, raw materials, components, minimum royalty guarantees and services pursuant to enforceable and legally binding obligations which include all significant terms, including fixed or minimum quantities to be purchased; fixed, minimum or variable price provisions; and the approximate timing of the transactions. |
(e) | Consists primarily of media and advertising contracts, pension funding obligations (amount due within one year only, as subsequent pension funding obligation amounts cannot be reasonably estimated since the return on pension assets in future periods, as well as future pension assumptions, are not known), software licensing agreements and obligations related to third-party warehousing and distribution services. Such amounts exclude employment agreements, severance and other immaterial contractual commitments, which severance and other contractual commitments related to restructuring activities are discussed in Note 3, “Restructuring Charges,” to the Consolidated Financial Statements in this Form 10-K. |
Effect of | Effect of | |||||||||||||||
25 basis points increase | 25 basis points decrease | |||||||||||||||
Net periodic benefit costs | Projected pension benefit obligation | Net periodic benefit costs | Projected pension benefit obligation | |||||||||||||
Discount rate | $ | 0.1 | $ | (16.1 | ) | $ | (0.5 | ) | $ | 16.9 | ||||||
Expected long-term rate of return | (1.3 | ) | — | 1.0 | — |
U.S. Plans | International Plans | ||||
Interest cost on projected benefit obligation | 3.23 | % | 2.34 | % | |
Service cost | 4.53 | % | 0.69 | % | |
Interest cost on service cost | 4.07 | % | 0.51 | % |
Consolidated Balance Sheet | Total as reported at 12/31/2015 | Adjustment | Total as adjusted at 12/31/2015 | |||||||||
Deferred income taxes - current | $ | 58.0 | $ | (58.0 | ) | $ | — | |||||
Deferred income taxes - noncurrent | 38.5 | 11.3 | 49.8 | |||||||||
Other long-term liabilities | 117.5 | (46.7 | ) | 70.8 | ||||||||
Consolidated Statement of Cash Flows | Total as reported at 12/31/2015 | Adjustment | Total as adjusted at 12/31/2015 | |||||||||
Increase in prepaid expense and other current assets | $ | (32.6 | ) | $ | 7.2 | $ | (25.4 | ) | ||||
Increase in accrued expenses and other current liabilities | 10.2 | — | 10.2 | |||||||||
Increase in other, net | 6.6 | (7.2 | ) | (0.6 | ) | |||||||
Consolidated Statement of Cash Flows | Total as reported at 12/31/2014 | Adjustment | Total as adjusted at 12/31/2014 | |||||||||
Increase (decrease) in prepaid expense and other current assets | $ | 4.5 | $ | (7.2 | ) | $ | (2.7 | ) | ||||
Decrease in accrued expenses and other current liabilities | (21.5 | ) | (0.1 | ) | (21.6 | ) | ||||||
Increase in other, net | 1.1 | 7.3 | 8.4 |
Consolidated Balance Sheet | Total as reported at 12/31/2015 | Adjustment | Total as adjusted at 12/31/2015 | |||||||||
Long-Term Debt | $ | 1,803.7 | $ | (20.0 | ) | $ | 1,783.7 | |||||
Other Assets | 104.1 | (20.0 | ) | 84.1 |
Expected Maturity Date for the Year Ended December 31, | ||||||||||||||||||||||||||||||||
(dollars in millions, except for rate information) | ||||||||||||||||||||||||||||||||
2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | Total | Fair Value December 31, 2016 | |||||||||||||||||||||||||
Debt | ||||||||||||||||||||||||||||||||
Short-term variable rate (third party - various currencies) | $ | 8.7 | $ | 8.7 | $ | 8.7 | ||||||||||||||||||||||||||
Average interest rate (a) | 3.8 | % | ||||||||||||||||||||||||||||||
Short-term fixed rate (third party - EUR) | $ | 2.1 | $ | 2.1 | $ | 2.1 | ||||||||||||||||||||||||||
Average interest rate | 11.8 | % | ||||||||||||||||||||||||||||||
Long-term fixed rate (third party - USD) | $ | 500.0 | $ | 450.0 | $ | 950.0 | $ | 956.9 | ||||||||||||||||||||||||
Average interest rate | 5.75 | % | 6.25 | % | ||||||||||||||||||||||||||||
Long-term fixed rate (third party - EUR) | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | 0.1 | $ | — | $ | 0.5 | $ | 0.5 | ||||||||||||||||
Average interest rate | — | % | — | % | — | % | — | % | — | % | — | % | ||||||||||||||||||||
Long-term variable rate (third party - USD) (b) | $ | 18.0 | $ | 18.0 | $ | 18.0 | $ | 18.0 | $ | 18.0 | $ | 1,705.5 | $ | 1,795.5 | $ | 1,813.5 | ||||||||||||||||
Average interest rate (a)(c) | 4.7 | % | 5.4 | % | 5.5 | % | 5.6 | % | 5.7 | % | 5.8 | % | ||||||||||||||||||||
Total debt | $ | 28.9 | $ | 18.1 | $ | 18.1 | $ | 18.1 | $ | 518.1 | $ | 2,155.5 | $ | 2,756.8 | $ | 2,781.7 |
(a) | Weighted average variable rates are based upon implied forward rates from the U.S. Dollar LIBOR and Euribor yield curves at December 31, 2016. |
(b) | Includes total quarterly amortization payments required within each year under the 2016 Term Loan Facility. |
(c) | At December 31, 2016, the 2016 Term Loan Facility bears interest at the Eurodollar Rate (as defined in the 2016 Term Loan Agreement) plus 3.50% per annum (with the Eurodollar Rate not to be less than 0.75%). See Note 11, "Long-Term Debt," to the Consolidated Financial Statements in this Form 10-K. |
Forward Contracts (“FC”) | Average Contractual Rate $/FC | U.S. Dollar Equivalent Notional Amount | Contract Value December 31, 2016 | Asset (Liability) Fair Value December 31, 2016 | ||||||||||
Sell Canadian Dollars/Buy USD | 0.7525 | 19.1 | 19.3 | 0.2 | ||||||||||
Sell British Pound/Buy USD | 1.3154 | 14.4 | 15.3 | 0.9 | ||||||||||
Sell Australian Dollars/Buy USD | 0.7345 | 13.5 | 13.9 | 0.4 | ||||||||||
Buy Mexican Peso/Sell USD | 0.0518 | 8.2 | 7.5 | (0.7 | ) | |||||||||
Sell USD/Buy Swiss Franc | 1.0190 | 5.9 | 5.8 | (0.1 | ) | |||||||||
Sell Euro/Buy USD | 1.1025 | 5.7 | 5.9 | 0.2 | ||||||||||
Sell Japanese Yen/Buy USD | 0.0096 | 4.8 | 5.3 | 0.5 | ||||||||||
Sell South African Rand/Buy USD | 0.0684 | 3.6 | 3.4 | (0.2 | ) | |||||||||
Buy Australian Dollars/Sell NZ dollars | 1.0608 | 2.7 | 2.7 | — | ||||||||||
Sell New Zealand Dollars/Buy USD | 0.7041 | 1.7 | 1.7 | — | ||||||||||
Total forward contracts | $ | 79.6 | $ | 80.8 | $ | 1.2 |
• | pertain to the maintenance of records that in reasonable detail accurately and fairly reflect the transactions and dispositions of its assets; |
• | provide reasonable assurance that transactions are recorded as necessary to permit preparation of its financial statements in accordance with generally accepted accounting principles, and that its receipts and expenditures are being made only in accordance with authorizations of its management and directors; and |
• | provide reasonable assurance regarding prevention or timely detection of unauthorized acquisition, use or disposition of the Company's assets that could have a material effect on its financial statements. |
(i) | the Company's future financial performance and/or sales growth, including, without limitation, the Company's anticipation of achieving growth through opportunities presented by the combined Company's expanded sales channels and geographies, a broadened product portfolio and cost synergy opportunities; |
(ii) | the effect on sales of decreased consumer spending in response to weak economic conditions or weakness in the consumption of beauty care products in the Consumer, Elizabeth Arden, Professional and/or Other segments; adverse changes in foreign currency exchange rates, foreign currency controls and/or government-mandated pricing controls; decreased sales of the Company’s products as a result of increased competitive activities by the Company’s competitors and/or decreased performance by third party suppliers, changes in consumer purchasing habits, including with respect to retailer preferences and/or among sales channels; inventory management by the Company's customers; space reconfigurations or reductions in display space by the Company's customers; changes in pricing, marketing, advertising and/or promotional strategies by the Company's customers; less than anticipated results from the Company’s existing or new products or from its advertising, promotional, pricing and/or marketing plans; or if the Company’s expenses, including, without limitation, for pension expense under its benefit plans, acquisition and acquisition-related integration costs, costs related to the Company’s synergy and integration programs in connection with the Elizabeth Arden Acquisition, restructuring costs, costs related to litigation, advertising, promotional and marketing activities, or for sales returns related to any reduction of space by the Company's customers, product discontinuances or otherwise, exceed the anticipated level of expenses; |
(iii) | the Company's belief that the continued execution of its business strategy could include taking advantage of additional opportunities to reposition, repackage or reformulate one or more brands or product lines, launching additional new products, acquiring businesses or brands (including through licensing transactions, if any), divesting or discontinuing non-core business lines (which may include exiting certain territories), further refining its approach to retail merchandising and/or taking further actions to optimize its manufacturing, sourcing and organizational size and structure, including optimizing the Colomer Acquisition, the CBB Acquisition, the Cutex International Acquisition (including the Company's belief that such acquisition enhances and complements the Company's existing brand portfolio of nail care products) and/or the Elizabeth Arden Acquisition, any of which, the intended purpose of which would be to create value through improving the Company's financial performance, could result in the Company making investments and/or recognizing charges related to executing against such opportunities, which activities may be funded with cash on hand, funds available under the 2016 Revolving Credit Facility and/or other permitted additional sources of capital, which actions could increase the Company’s total debt; |
(iv) | the Company’s belief that it is building a combined organization that is entrepreneurial, agile and boldly creative, with a passion for beauty, that it has strategic brand builders developing a diverse portfolio of iconic brands that delight consumers around the world wherever and however they shop for beauty and that it strives to be an ethical company that values inclusive leadership and is committed to sustainable and responsible growth and the Company’s belief in its strategy that is based on three key pillars: (a) strengthening our portfolio of brands by: continuing to develop the leadership and aspiration for our flagship brands; Revlon, Elizabeth Arden and Almay; continuing to develop our product offerings across beauty segments with a focus on large and/or fast growing categories; leveraging our creativity, insights and agility to accelerate innovation to develop trend-relevant and first-of-its kind beauty solutions; delighting our customers with high performing products, superior services and unique experiences that exceed their expectations; and continuing to communicate our brand's heritage, expertise and purpose to create authentic, meaningful and lasting connections with consumers of all ages; (b) strategically expanding consumer's access to our brands by: taking steps to ensure that consumers have real-time access to our brands wherever and however they shop for beauty; strengthening and diversifying our channels, especially direct to consumer; accelerating our development in high-growth channels, with a focus on specialty e-commerce and m-commerce; continuing to win in traditional channels (including mass, drug, selective and department stores) and expanding our combined reach into travel retail; and strengthening our position in the U.S., to ensure our growth base, and expanding into untapped geographic regions, with a focus on growth in Asia; and (c) developing a cost structure that fuels investment in our brands by: growing profitably and improving its operating performance; aligning strategic investments behind the biggest growth opportunities and innovation that differentiates our brands; continuing to improve our category mix by shifting toward higher gross margin categories (e.g., skin care and fragrance); reducing product returns, markdowns and inventory levels; and optimizing resource allocation; |
(v) | the Company’s belief and expectations that: (A) its new brand-centric organization structure is designed to advance the Company’s pursuit of its business strategy; (B) its global brand team structure is designed to optimize and focus on building brand equity and delighting and winning with beauty consumers; and (C) its regional structure is designed to ensure that the Company benefits from its broad commercial expertise in the local countries within each region and continues to develop strategic customer relationships in the local countries; |
(vi) | the effect of restructuring activities, restructuring costs and charges, the timing of restructuring payments and the benefits from such activities; including, without limitation, the Company’s expectation (a) that the 2015 Efficiency Program will drive certain organizational efficiencies across the Company's Consumer and Professional segments and reduce general and administrative expenses within the Consumer and Professional segments; (b) that the Company will recognize a total of approximately $12.2 million of restructuring and related charges for the 2015 Efficiency Program by the end of 2017; (c) that cash payments related to the 2015 Efficiency Program will total approximately $12 million, including $0.2 million for capital expenditures (which capital expenditures are excluded from total restructuring and related charges expected to be recognized for the 2015 Efficiency Program), of which $3.3 million was paid in 2016, with the remaining balance expected to be paid in 2017; and (d) that annualized cost reductions from the 2015 Efficiency Program in 2017 and thereafter are expected to be approximately $10 million ; |
(vii) | the Company’s expectation that operating revenues, cash on hand and funds available for borrowing under Products Corporation's 2016 Revolving Credit Facility and other permitted lines of credit will be sufficient to enable the Company to cover its operating expenses for 2017, including the cash requirements referred to in item (ix) below, and the Company's beliefs that (a) the cash generated by its domestic operations and availability under the 2016 Revolving Credit Facility and other permitted lines of credit should be sufficient to meet its domestic liquidity needs for at least the next 12 months, and (b) restrictions and/or taxes on repatriation of foreign earnings will not have a material effect on the Company's liquidity during such period; |
(viii) | the Company’s expected principal sources of funds, including operating revenues, cash on hand and funds available for borrowing under Products Corporation's 2016 Revolving Credit Facility and other permitted lines of credit, as well as the availability of funds from the Company taking certain measures, including, among other things, reducing discretionary spending; |
(ix) | the Company's expected principal uses of funds, including amounts required for the payment of operating expenses, including expenses in connection with the continued execution of the Company’s business strategy; payments in connection with the Company’s synergy and integration programs related to the Elizabeth Arden Acquisition (including, without limitation, for the EA Integration Restructuring Program); payments in connection with the Company's purchases of permanent wall displays; capital expenditure requirements; debt service payments and costs; cash tax payments; pension and other post-retirement benefit plan contributions; payments in connection with the Company's restructuring programs; business and/or brand acquisitions (including, without limitation, through licensing transactions, if any); severance not otherwise included in the Company’s restructuring programs; debt and/or equity repurchases, if any; costs related to litigation; and payments in connection with discontinuing non-core business lines and/or exiting and/or entering certain territories and/or channels of trade (including, without limitation, that the Company may also, from time to time, seek to retire or purchase its outstanding debt obligations and/or equity in open market purchases, block trades, privately negotiated purchase transactions or otherwise and may seek to refinance some or all of its indebtedness based upon market conditions and that any such retirement or purchase of debt and/or advancement of funds to Revlon to repurchase its equity may be funded with operating cash flows of the business or other sources and will depend upon prevailing market conditions, liquidity requirements, contractual restrictions and other factors, and the amounts involved may be material); and its estimates of the amount and timing of such operating and other expenses; |
(x) | matters concerning the Company's market-risk sensitive instruments, including that any risk of loss under its derivative instruments arising from any non-performance by any of the counterparties is remote; |
(xi) | the Company's expectation to efficiently manage its working capital, including, among other things, initiatives intended to optimize inventory levels over time; centralized procurement to secure discounts and efficiencies; prudent management of trade receivables and accounts payable; and controls on general and administrative spending; and the Company’s belief that in the ordinary course of business, its source or use of cash from operating activities may vary on a quarterly basis as a result of a number of factors, including the timing of working capital flows; |
(xii) | the Company’s expectations regarding its future net periodic benefit cost for its U.S. and international defined benefit plans; |
(xiii) | the Company's expectation that its tax provision and effective tax rate in any individual quarter and year-to-date period will vary and may not be indicative of the Company's tax provision and effective tax rate for the full year and its belief that it is reasonably possible that its unrecognized tax benefits during 2017 will decrease by approximately $9.6 million due to the resolution of audits and the expiration of statutes of limitation; |
(xiv) | the Company belief the allegations contained in the Second Consolidated Amended Class Action Complaint are without merit and its plans to vigorously defend against them and its belief that the outcome of all pending legal proceedings in the aggregate is not reasonably likely to have a material adverse effect on the Company’s business, prospects, results of operations, financial condition and/or cash flows, but that in light of the uncertainties involved in legal proceedings generally, the ultimate outcome of a particular matter could be material to the Company’s operating results for a particular period depending on, among other things, the size of the loss or the nature of the liability imposed and the level of the Company’s income for that particular period; |
(xv) | certain estimates used by management in estimating the fair value of the assets acquired in the Elizabeth Arden Acquisition and the Cutex International Acquisition; and |
(xvi) | the Company's expected benefits and other impacts from the Elizabeth Arden Acquisition, including, without limitation: (a) achieving additional growth through opportunities presented by the combined company’s expanded sales channels and geographies, a broadened product portfolio and cost synergy opportunities; (b) as a result of the EA Integration Restructuring Program, as well as other actions related to integrating the Elizabeth Arden organization into the Company’s business, achieving annualized synergies and cost reductions of approximately $190 million over a multi-year period, with approximately 90% expected to be achieved by the end of 2020; (c) incurring, over a multi-year period, approximately $100 million to $110 million of integration-related capital expenditures and approximately $70 million to $80 million of non-restructuring integration costs related to these actions; and (d) in connection with implementing the EA Integration Restructuring Program: (1) consolidating offices, eliminating certain duplicative activities and streamlining back-office support (which are designed to reduce the Company’s SG&A expenses) and eliminating approximately 350 positions worldwide and (2) recognizing approximately $65 million to $75 million of the EA Integration Restructuring Charges, consisting of: (i) approximately $40 million to $50 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. |
(i) | unanticipated circumstances or results affecting the Company's financial performance and or sales growth, including decreased consumer spending in response to weak economic conditions or weakness in the consumption of beauty care products in the Consumer, Elizabeth Arden, Professional and/or Other segments; adverse changes in foreign currency exchange rates, foreign currency controls and/or government-mandated pricing controls; decreased sales of the Company's products as a result of increased competitive activities by the Company's competitors and/or decreased performance by third party suppliers; changes in consumer preferences, such as reduced consumer demand for the Company's color cosmetics and other current products, including new product launches; changes in consumer purchasing habits, including with respect to retailer preferences and/or among sales channels; lower than expected customer acceptance or consumer acceptance of, or less than anticipated results from, the Company’s existing or new products; higher than expected restructuring costs, acquisition costs and/or acquisition-related integration costs, including, without limitation, synergy and integration program costs and expenses related to the Elizabeth Arden Acquisition; higher than expected pension expense and/or cash contributions under its benefit plans, costs related to litigation, advertising, promotional and/or marketing expenses or lower than expected results from the Company’s advertising, promotional, pricing and/or marketing plans; higher than expected sales returns related to any reduction of space by the Company's customers, product discontinuances or otherwise or decreased sales of the Company’s existing or new products; actions by the Company’s customers, such as inventory management and greater than anticipated space reconfigurations or reductions in display space and/or product discontinuances or a greater than expected impact from pricing, marketing, advertising and/or promotional strategies by the Company's customers; and changes in the competitive environment and actions by the Company's competitors, including, among other things, business combinations, technological breakthroughs, implementation of new pricing strategies, new product offerings, increased advertising, promotional and marketing spending and advertising, promotional and/or marketing successes by competitors; |
(ii) | in addition to the items discussed in (i) above, the effects of and changes in economic conditions (such as continued volatility in the financial markets, inflation, monetary conditions and foreign currency fluctuations, foreign currency controls and/or government-mandated pricing controls, as well as in trade, monetary, fiscal and tax policies in international markets) and political conditions (such as military actions and terrorist activities); |
(iii) | unanticipated costs or difficulties or delays in completing projects associated with the continued execution of the Company’s business strategy or lower than expected revenues or the inability to create value through improving our financial performance as a result of such strategy, including lower than expected sales, or higher than expected costs, including as may arise from any additional repositioning, repackaging or reformulating of one or more brands or product lines, launching of new product lines, including higher than expected expenses, including for sales returns, for launching its new products, acquiring businesses or brands (including through licensing transactions, if any), divesting or discontinuing non-core business lines (which may include exiting certain territories), further refining its approach to retail merchandising and/or difficulties, delays or increased costs in connection with taking further actions to optimize the Company’s manufacturing, sourcing, supply chain or organizational size and structure, including optimizing the Colomer Acquisition, the CBB Acquisition, the Cutex International Acquisition and/or the Elizabeth Arden Acquisition (including difficulties or delays in and/or the Company’s inability to integrate the Elizabeth Arden business which could result in less than expected cost reductions, more than expected costs to achieve the expected cost reductions or delays in achieving the expected cost reductions and/or less than expected benefits from the EA Integration Restructuring Program, more than expected costs in implementing such program and/or difficulties or delays, in whole or in part, in executing the EA Integration Restructuring Program), as well as the unavailability of cash on hand and/or funds under the 2016 Revolving Credit Facility or from other permitted additional sources of capital to fund such potential activities; |
(iv) | (A) difficulties, delays in or less than expected results from the Company’s efforts to build a combined organization that is entrepreneurial, agile and boldly creative with a passion for beauty, having strategic brand builders developing a diverse portfolio of iconic brands that delight consumers around the world wherever and however they shop for beauty and striving to be an ethical company that values inclusive leadership and is committed to sustainable and responsible growth, such as due to, among other things, less than effective product development, less than expected acceptance of its new or existing products by consumers, salon professionals and/or customers, less than expected acceptance of its advertising, promotional, pricing and/or marketing plans and/or brand communication by consumers, salon professionals and/or customers, less than expected investment in advertising, promotional and/or marketing activities or greater than expected competitive investment, less than expected levels of advertising, promotional and/or marketing activities for its new product launches and/or less than expected levels of execution with its customers or higher than expected costs and expenses; and/or (B) difficulties, delays in or less than expected results from the Company’s efforts to strengthen its portfolio of brands, strategically expand consumer's access to the Company’s brands and/or develop a cost structure that fuels investment in the Company’s brands, such as due to less than expected investment behind such activities, less than effective new product development and/or advertising, marketing or promotional programs, less than expected success in expanding geographically, into new channels and/or expanding the Company’s digital capabilities and/or less than expected results from the Company’s efforts to reduce costs, including, without limitation, due to higher than expected sales returns such as those that may be related to actions by the Company’s customers, such as inventory management or greater than anticipated space reconfigurations or reductions in display space; |
(v) | difficulties with, delays in and/or the Company’s inability to achieve the benefits expected from its new organization structure, such as difficulties with, delays in and/or the Company’s inability to (A) optimize and focus on building brand equity and delighting and winning with beauty consumers; and/or (B) benefit from its broad commercial expertise in the local countries within each region, continue to develop strategic customer relationships in the local countries and/or optimize global sales and brand presence; |
(vi) | difficulties, delays or unanticipated costs or charges or less than expected cost reductions and other benefits resulting from the Company's restructuring activities, such as greater than anticipated costs or charges or less than anticipated cost reductions or other benefits from the 2015 Efficiency Program and/or the EA Integration Restructuring Program and/or the risk that such programs may not satisfy the Company’s objectives; |
(vii) | lower than expected operating revenues, cash on hand and/or funds available under the 2016 Revolving Credit Facility and/or other permitted lines of credit or higher than anticipated operating expenses, such as referred to in clause (ix) below, and/or less than anticipated cash generated by the Company's domestic operations or unanticipated restrictions or taxes on repatriation of foreign earnings; |
(viii) | the unavailability of funds under Products Corporation's 2016 Revolving Credit Facility or other permitted lines of credit; or from difficulties, delays in or the Company's inability to take other measures, such as reducing discretionary spending; |
(ix) | higher than expected operating expenses, sales returns, working capital expenses, integration and/or synergy costs related to the Elizabeth Arden Acquisition, permanent wall display costs, capital expenditures, debt service payments, cash tax payments, cash pension plan contributions, other post-retirement benefit plan contributions and/or net periodic benefit costs for the pension and other post-retirement benefit plans, restructuring costs, (including, without limitation, in connection with implementing the EA Integration Restructuring Program), severance and discontinued operations not otherwise included in the Company’s restructuring programs, debt and/or equity repurchases, costs related to litigation and/or payments in connection with business and/or brand acquisitions (including, without limitation, through licensing transactions, if any), and discontinuing non-core business lines and/or exiting and/or entering certain territories and/or channels of trade; |
(x) | interest rate or foreign exchange rate changes affecting the Company and its market-risk sensitive financial instruments and/or difficulties, delays or the inability of the counterparty to perform such transactions; |
(xi) | difficulties, delays or the inability of the Company to efficiently manage its cash and working capital; |
(xii) | lower than expected returns on pension plan assets and/or lower discount rates, which could result in higher than expected cash contributions, higher net periodic benefit costs and/or less than expected net periodic benefit income; |
(xiii) | unexpected significant variances in the Company's tax provision, effective tax rate and/or unrecognized tax benefits; |
(xiv) | unanticipated adverse effects on the Company’s business, prospects, results of operations, financial condition and/or cash flows as a result of unexpected developments with respect to the Company's legal proceedings; |
(xv) | changes in the fair values of the assets acquired in the Elizabeth Arden Acquisition and/or the Cutex International Acquisition due to, among other things, unanticipated future performance of the acquired licenses and/or other brands; and/or |
(xvi) | difficulties with, delays in and/or the Company’s inability to achieve, in whole or in part, or within the expected timeframe the expected benefits from the Elizabeth Arden Acquisition, such as (a) the Company’s or the Elizabeth Arden’s respective businesses experiencing disruptions due to management’s focus on executing the business integration activities and/or due to employee uncertainty during the integration transition period or other factors making it more difficult to maintain relationships with customers, suppliers, employees and other business partner; (b) the Company being unable to successfully implement, in whole or in part, its integration strategies, including the possibility that the expected synergies and cost reductions from the Elizabeth Arden Acquisition will not be realized or will not be realized within the expected time period; (c) difficulties, delays or the inability of the Company to successfully complete the EA Integration Restructuring Program, in whole or in part, which could result in less than expected operating and financial benefits from such actions; (d) difficulties, delays or the inability of the Company to realize, in whole or in part, the anticipated benefits from the EA Integration Restructuring Program, such as difficulties with, delays in or the Company’s inability to generate certain reductions in its SG&A and/or eliminate certain positions; (e) delays in completing the EA Integration Restructuring Program, which could reduce the benefits realized from such activities; (f) higher than anticipated restructuring charges and/or payments in connection with completing the EA Integration Restructuring Program and/or changes in the expected timing of such charges and/or payments; and/or (g) difficulties with, delays in and/or the Company’s inability to achieve, in whole or in part, or within the expected timeframe approximately $190 million of multi-year annualized synergies and cost reductions, such as due to the Company being unable to successfully implement integration strategies and/or changes in the timing of realizing such synergies and cost reductions, such as due to less than anticipated liquidity to fund such activities and/or more than expected capital expenditures, non-restructuring integration costs or other costs to achieve the expected synergies and/or cost reductions. |
Types of Fees | 2016 | 2015 | |||||
Audit Fees | $ | 5.2 | $ | 5.0 | |||
Audit-Related Fees | 0.1 | 0.1 | |||||
Tax Fees | 0.2 | 0.3 | |||||
All Other Fees | — | — | |||||
Total Fees | $ | 5.5 | $ | 5.4 |
(a) | List of documents filed as part of this Report: |
(1) Consolidated Financial Statements and Reports of Independent Registered Public Accounting Firm included herein: See Index on page F-1. | |
(2) Financial Statement Schedule: See Index on page F-1. | |
All other schedules are omitted as they are inapplicable or the required information is furnished in the Company’s Consolidated Financial Statements or the Notes thereto. | |
(3) List of Exhibits: | |
2. | Plan of acquisition, reorganization, arrangement, liquidation or succession |
2.1 | Share Sale and Purchase Agreement, dated as of August 3, 2013, by and among Products Corporation, Beauty Care Professional Products Participations, S.A., Romol Hair & Beauty Group, S.L., Norvo, S.L. and Staubinus España, S.L. (incorporated by reference to Exhibit 2.1 to Revlon’s Current Report on Form 8-K filed with the SEC on August 5, 2013). |
2.2 | Agreement and Plan of Merger, dated as of June 16, 2016, by and among Revlon, Products Corporation, RR Transaction Corp. and Elizabeth Arden (incorporated by reference to Exhibit 2.1 to the Current Report on Form 8-K of Revlon filed with the SEC on June 17, 2016 (the "Revlon June 2016 Form 8-K")). |
3. | Certificate of Incorporation and By-laws. |
3.1 | Restated Certificate of Incorporation of Products Corporation, dated May 13, 2004 (incorporated by reference to Exhibit 3.1 of Products Corporation's Quarterly Report on Form 10-Q for the quarter ended March 31, 2004 filed with the SEC on May 17, 2004). |
3.2 | Second Amended and Restated By-Laws of Products Corporation, dated as of May 1, 2009 (incorporated by reference to Exhibit 3.1 to Products Corporation's Current Report on Form 8-K filed with the SEC on April 29, 2009). |
4. | Instruments Defining the Rights of Security Holders, Including Indentures. |
4.1 | Indenture, dated as of February 8, 2013, among Products Corporation, certain subsidiaries of Products Corporation as guarantors thereto, and U.S. Bank National Association, as trustee, relating to Products Corporation's 5.75% Senior Notes due 2021 (the “5.75% Senior Notes Indenture”) (incorporated by reference to Exhibit 4.3 to Products Corporation's Quarterly Report on Form 10-Q for the fiscal period ended March 30, 2013 filed with the SEC on April 25, 2013 (the "Products Corporation Q1 2013 Form 10-Q")). |
4.2 | Form of 5.75% Senior Notes (included in Exhibit 4.1) (incorporated by reference to Exhibit 4.4 to the Products Corporation Q1 2013 Form 10-Q). |
4.3 | Registration Rights Agreement, dated as of February 8, 2013, among Products Corporation, certain subsidiaries of Products Corporation and Citigroup Global Markets Inc. ("CGMI"), as representative of the several initial purchasers of the 5.75% Senior Notes (incorporated by reference to Exhibit 4.5 to the Products Corporation Q1 2013 Form 10-Q). |
4.4 | Supplemental Indenture to the 5.75% Senior Notes Indenture, dated as of February 8, 2013, among Products Corporation, Revlon and certain subsidiaries of Products Corporation, as guarantors thereto, and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.6 to the Products Corporation Q1 2013 Form 10-Q). |
4.5 | Supplemental Indenture to the 5.75% Senior Notes Indenture, dated as of January 21, 2014, among Products Corporation, Revlon and certain subsidiaries of Products Corporation, as guarantors thereto, and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.27 to Products Corporation's Annual Report on Form 10-K for the fiscal year ended December 31, 2013 filed with the SEC on March 5, 2014 (the "Products Corporation 2013 Form 10-K")). |
4.6 | Third Supplemental Indenture to the 5.75% Senior Notes Indenture, dated as of January 14, 2015, among Realistic Roux Professional Products Inc., Products Corporation, the Guarantors defined in the 5.75% Senior Notes Indenture, and U.S Bank National Association (incorporated by reference to Exhibit 10.1 to Products Corporation's Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2015, filed with the SEC on July 29, 2015 (the "Products Corporation Q2 2015 Form 10-Q")). |
4.7 | Fourth Supplemental Indenture to the 5.75% Senior Notes Indenture, dated as of May 8, 2015, among RML, LLC, Products Corporation, the Guarantors defined in the 5.75% Senior Notes Indenture, and U.S Bank National Association (incorporated by reference to Exhibit 10.2 to the Products Corporation Q2 2015 Form 10-Q). |
4.8 | Escrow Agreement for the 6.25% Senior Notes, dated as of August 4, 2016, by and among Revlon Escrow Corporation ("Escrow Corp."), U.S. Bank National Association, as trustee, and Citibank, N.A., as escrow agent (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K of Revlon filed with the SEC on August 5, 2016 (the "Revlon August 2016 Form 8-K")). |
4.9 | Indenture for the 6.25% Senior Notes, dated as of August 4, 2016 (the "6.25% Senior Notes Indenture"), by and between Escrow Corp. and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.2 to the Revlon August 2016 Form 8-K). |
4.10 | Registration Rights Agreement, dated as of August 4, 2016, by and among Escrow Corp, Merrill Lynch, Pierce, Fenner & Smith Incorporated ("Merrill Lynch") and CGMI as representatives of the initial purchasers (incorporated by reference to Exhibit 4.3 to the Revlon August 2016 Form 8-K). |
4.11 | First Supplemental Indenture to the 6.25% Senior Notes Indenture, dated as of September 7, 2016, by and among Products Corporation, the guarantors party thereto and U.S. Bank National Association, as trustee (incorporated by reference to Exhibit 4.1 to the Current Report on Form 8-K of Revlon filed with the SEC on September 9, 2016 (the "Revlon September 2016 Form 8-K")). |
4.12 | Joinder Agreement to the Registration Rights Agreement, dated as of September 7, 2016, by and among Products Corporation, the guarantors party thereto and Merrill Lynch and CGMI, as representatives of the initial purchasers (incorporated by reference to Exhibit 4.2 to the Revlon September 2016 Form 8-K). |
4.13 | Term Loan Agreement, dated as of September 7, 2016, by and among Products Corporation, Revlon (solely for the purposes set forth therein), certain lenders party thereto and Citibank, N.A., as administrative agent and collateral agent (incorporated by reference to Exhibit 10.1 to the Revlon September 2016 Form 8-K). |
4.14 | Asset-Based Revolving Credit Agreement, dated as of September 7, 2016, by and among Products Corporation, certain local borrowing subsidiaries from time to time party thereto, Revlon (solely for the purposes set forth therein), certain lenders and issuing lenders party thereto and Citibank, N.A., as administrative agent, collateral agent, issuing lender and swingline lender (incorporated by reference to Exhibit 10.2 to the Revlon September 2016 Form 8-K). |
4.15 | Term Loan Guarantee and Collateral Agreement, dated as of September 7, 2016, made by each of the signatories thereto in favor of Citibank, N.A., as collateral agent, for the benefit of the secured parties under the 2016 Term Loan Agreement (incorporated by reference to Exhibit 10.3 to the Revlon September 2016 Form 8-K). |
4.16 | Holdings Term Loan Guarantee and Pledge Agreement, dated as of September 7, 2016, made by Revlon in favor of Citibank, N.A., as collateral agent, for the benefit of the secured parties under the 2016 Term Loan Agreement (incorporated by reference to Exhibit 10.4 to the Revlon September 2016 Form 8-K). |
4.17 | ABL Guarantee and Collateral Agreement, dated as of September 7, 2016, made by each of the signatories thereto in favor of Citibank, N.A., as collateral agent, for the benefit of the secured parties under the 2016 Asset-Based Revolving Credit Agreement (incorporated by reference to Exhibit 10.5 to the Revlon September 2016 Form 8-K). |
4.18 | Holdings ABL Guarantee and Pledge Agreement, dated as of September 7, 2016, made by Revlon in favor of Citibank, N.A., as collateral agent, for the benefit of the secured parties under the 2016 Asset-Based Revolving Credit Agreement (incorporated by reference to Exhibit 10.6 to the Revlon September 2016 Form 8-K). |
4.19 | ABL Intercreditor Agreement, dated as of September 7, 2016, among Citibank, N.A., as ABL Agent, Citibank, N.A., as Initial Term Loan Agent, Revlon, Products Corporation, each subsidiary listed therein or that becomes a party thereto and each Other Term Loan Agent from time to time party thereto (incorporated by reference to Exhibit 10.7 to the Revlon September 2016 Form 8-K). |
10. | Material Contracts. |
10.1 | Tax Sharing Agreement, dated as of June 24, 1992, among MacAndrews & Forbes, Revlon, Products Corporation and certain subsidiaries of Products Corporation, as amended and restated as of January 1, 2001 (incorporated by reference to Exhibit 10.2 to Products Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 2001 filed with the SEC on February 25, 2002). |
10.2 | Tax Sharing Agreement, dated as of March 26, 2004, by and among Revlon, Products Corporation and certain subsidiaries of Products Corporation (incorporated by reference to Exhibit 10.25 to Products Corporation’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2004 filed with the SEC on May 17, 2004). |
10.3 | Employment Agreement, dated as of March 27, 2016, by and among Revlon, Products Corporation and Fabian T. Garcia (incorporated by reference to Exhibit 10.1 to Revlon's Current Report on Form 8-K filed with the SEC on March 28, 2016 (the "Revlon March 2016 Form 8-K")). |
10.4 | Form of Restricted Stock Agreement (incorporated by reference to Exhibit 10.2 to the Revlon March 2016 Form 8-K). |
10.5 | Employment Agreement, dated as of April 12, 2016, by and among Revlon, Products Corporation and Juan R. Figuereo (incorporated by reference to Exhibit 10.1 to Revlon's Current Report on Form 8-K filed with the SEC on April 12, 2016). |
10.6 | Consulting Agreement by and among Revlon, Products Corporation and E. Scott Beattie, dated as of November 3, 2016 (incorporated by reference to Exhibit 10.1 to the Revlon Q3 2016 Form 10-Q). |
10.7 | Restricted Stock Unit Agreement between Revlon and E. Scott Beattie, dated November 3, 2016 (incorporated by reference to Exhibit 10.2 to the Revlon Q3 2016 Form 10-Q). |
10.8 | Employment Agreement, dated as of October 9, 2014, by and among Revlon, Products Corporation and Gianni Pieraccioni (incorporated by reference to Exhibit 10.11 to Revlon's Annual Report on Form 10-K for the fiscal year ended December 31, 2014 filed with the SEC on March 12, 2015 (the "Revlon 2014 Form 10-K")). |
10.9 | First Amendment to Employment Agreement by and among Revlon, Products Corporation and Gianni Pieraccioni, dated as of February 26, 2016 (incorporated by reference to Exhibit 10.7 to Revlon’s Annual Report on Form 10-K for the fiscal year ended December 31, 2015 filed with the SEC on February 26, 2016). |
10.10 | Amended and Restated Employment Agreement, dated as of December 12, 2014, by and between Products Corporation and Lorenzo Delpani (incorporated by reference to Exhibit 10.9 to the Revlon 2014 Form 10-K). |
10.11 | Transition and Separation Agreement and Release dated March 1, 2016 by and among Revlon, Products Corporation and Lorenzo Delpani (incorporated by reference to Exhibit 10.1 to Revlon's Current Report on Form 8-K filed with the SEC on March 4, 2016). |
10.12 | Amendment, dated April 21, 2016, to the Transition and Separation Agreement and Release by and among Revlon, Products Corporation and Lorenzo Delpani (incorporated by reference to Exhibit 10.1 to Revlon's Current Report on Form 8-K filed with the SEC on April 22, 2016). |
10.13 | Amended and Restated Employment Agreement, dated as of July 28, 2015, by and among Revlon, Products Corporation and Roberto Simon (incorporated by reference to Exhibit 10.3 to Revlon’s Quarterly Report on Form 10-Q for the fiscal quarter ended June 30, 2015 filed with the SEC on July 29, 2015). |
10.14 | Separation Agreement, dated as of November 3, 2015, by and among Revlon, Products Corporation and Roberto Simon (incorporated by reference to Exhibit 10.1 to Revlon’s Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2015 filed with the SEC on November 4, 2015). |
10.15 | Fourth Amended and Restated Revlon, Inc. Stock Plan (as amended, the "Stock Plan") (incorporated by reference to Annex A to Revlon’s Definitive Information Statement on Schedule 14C filed with the SEC on July 3, 2014). |
10.16 | Form of Restricted Stock Agreement under the Stock Plan (incorporated by reference to Exhibit 10.3 to Revlon's Quarterly Report on Form 10-Q for the fiscal quarter ended September 30, 2014 filed with the SEC on October 29, 2014). |
10.17 | Revlon Amended and Restated Executive Incentive Compensation Plan, dated as of March 24, 2016 (incorporated by reference to Annex D to Revlon's Annual Proxy Statement on Schedule 14A filed with the SEC on April 29, 2016). |
10.18 | Amended and Restated Revlon Pension Equalization Plan, amended and restated as of December 14, 1998 (the “PEP”) (incorporated by reference to Exhibit 10.15 to Revlon’s Annual Report on Form 10-K for the fiscal year ended December 31, 1998 filed with the SEC on March 3, 1999). |
10.19 | Amendment to the PEP, dated as of May 28, 2009 (incorporated by reference to Exhibit 10.13 to Revlon's Annual Report on Form 10-K for the fiscal year ended December 31, 2009 filed with the SEC on February 25, 2010). |
10.20 | Executive Supplemental Medical Expense Plan Summary, dated July 2000 (incorporated by reference to Exhibit 10.10 to Revlon’s Annual Report on Form 10-K for the fiscal year ended December 31, 2002 filed with the SEC on March 21, 2003). |
10.21 | Benefit Plans Assumption Agreement, dated as of July 1, 1992, by and among Revlon Holdings, Revlon and Products Corporation (incorporated by reference to Exhibit 10.25 to Products Corporation’s Annual Report on Form 10-K for the fiscal year ended December 31, 1992 filed with the SEC on March 12, 1993). |
10.22 | Revlon Executive Severance Pay Plan (incorporated by reference to Exhibit 10.2 to Revlon’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 31, 2009 filed with the SEC on April 30, 2009). |
10.23 | Preferred Stock Repurchase and Warrant Cancellation Agreement, dated June 16, 2016, by and among Revlon, Products Corporation, RR Transaction Corp., Elizabeth Arden, Nightingale Onshore Holdings L.P. and Nightingale Offshore Holdings L.P. (incorporated by reference to Exhibit 10.1 to the Revlon June 2016 Form 8-K). |
21. | Subsidiaries. |
*21.1 | Subsidiaries of Revlon Consumer Products Corporation |
22. | Powers of Attorney. |
*22.1 | Power of Attorney executed by Ronald O. Perelman. |
*22.2 | Power of Attorney executed by Alan S. Bernikow. |
*22.3 | Power of Attorney executed by Viet D. Dinh. |
*22.4 | Power of Attorney executed by Barry F. Schwartz. |
*31.1 | Certification of Fabian T. Garcia, Chief Executive Officer, dated March 3, 2017, pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act. |
*31.2 | Certification of Juan R. Figuereo, Chief Financial Officer, dated March 3, 2017, pursuant to Rule 13a-14(a)/15d-14(a) of the Exchange Act. |
32.1 (furnished herewith) | Certification of Fabian T. Garcia, Chief Executive Officer, dated March 3, 2017, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
32.2 (furnished herewith) | Certification of Juan R. Figuereo, Chief Financial Officer, dated March 3, 2017, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002. |
*101.INS | XBRL Instance Document |
*101.SCH | XBRL Taxonomy Extension Schema |
*101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
*101.DEF | XBRL Taxonomy Extension Definition Linkbase |
*101.LAB | XBRL Taxonomy Extension Label Linkbase |
*101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
Page | ||
Report of Independent Registered Public Accounting Firm (Consolidated Financial Statements) | ||
Audited Financial Statements: | ||
Consolidated Balance Sheets as of December 31, 2016 and 2015 | ||
Consolidated Statements of Operations and Comprehensive (Loss) Income for each of the years in the three-year period ended December 31, 2016 | ||
Consolidated Statements of Stockholder's Deficiency for each of the years in the three-year period ended December 31, 2016 | ||
Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 31, 2016 | ||
Notes to Consolidated Financial Statements | ||
Financial Statement Schedule: | ||
Schedule II - Valuation and Qualifying Accounts |
December 31, 2016 | December 31, 2015 | ||||||
(as adjusted)(a) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 186.8 | $ | 326.9 | |||
Trade receivables, less allowance for doubtful accounts of $11.1 and $10.5 as of December 31, 2016 and December 31, 2015, respectively | 423.9 | 244.9 | |||||
Inventories | 424.6 | 183.8 | |||||
Prepaid expenses and other | 84.9 | 53.3 | |||||
Receivable from Revlon, Inc. | 132.7 | 117.4 | |||||
Total current assets | 1,252.9 | 926.3 | |||||
Property, plant and equipment, net of accumulated depreciation of $304.7 and $271.7 as of December 31, 2016 and December 31, 2015, respectively | 320.5 | 215.3 | |||||
Deferred income taxes | 136.1 | 49.8 | |||||
Goodwill | 689.5 | 469.7 | |||||
Intangible assets, net of accumulated amortization of $84.8 and $61.1 as of December 31, 2016 and December 31, 2015, respectively | 636.6 | 318.0 | |||||
Other assets | 103.1 | 84.1 | |||||
Total assets | $ | 3,138.7 | $ | 2,063.2 | |||
LIABILITIES AND STOCKHOLDER'S DEFICIENCY | |||||||
Current liabilities: | |||||||
Short-term borrowings | $ | 10.8 | $ | 11.3 | |||
Current portion of long-term debt | 18.1 | 30.0 | |||||
Accounts payable | 296.9 | 201.3 | |||||
Accrued expenses and other | 382.7 | 272.4 | |||||
Total current liabilities | 708.5 | 515.0 | |||||
Long-term debt | 2,663.1 | 1,783.7 | |||||
Long-term pension and other post-retirement plan liabilities | 184.1 | 185.3 | |||||
Other long-term liabilities | 89.8 | 70.8 | |||||
Stockholder's deficiency: | |||||||
RCPC Preferred stock, par value $1.00 per share; 1,000 shares authorized; 546 shares issued and outstanding as of December 31, 2016 and December 31, 2015, respectively | 54.6 | 54.6 | |||||
Common Stock, par value $1.00 per share; 10,000 shares authorized and 5,260 shares issued as of December 31, 2016 and December 31, 2015, respectively | — | — | |||||
Additional paid-in capital | 964.4 | 957.5 | |||||
Accumulated deficit | (1,274.1 | ) | (1,258.4 | ) | |||
Accumulated other comprehensive loss | (251.7 | ) | (245.3 | ) | |||
Total stockholder's deficiency | (506.8 | ) | (491.6 | ) | |||
Total liabilities and stockholder's deficiency | $ | 3,138.7 | $ | 2,063.2 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net sales | $ | 2,334.0 | $ | 1,914.3 | $ | 1,941.0 | |||||
Cost of sales | 917.1 | 667.8 | 668.3 | ||||||||
Gross profit | 1,416.9 | 1,246.5 | 1,272.7 | ||||||||
Selling, general and administrative expenses | 1,151.6 | 993.5 | 999.7 | ||||||||
Acquisition and integration costs | 43.2 | 8.0 | 6.4 | ||||||||
Restructuring charges and other, net | 34.0 | 10.5 | 21.3 | ||||||||
Impairment charge | 23.4 | 9.7 | — | ||||||||
Operating income | 164.7 | 224.8 | 245.3 | ||||||||
Other expenses, net: | |||||||||||
Interest expense | 105.2 | 83.3 | 84.4 | ||||||||
Amortization of debt issuance costs | 6.8 | 5.7 | 5.5 | ||||||||
Loss on early extinguishment of debt, net | 16.9 | — | 2.0 | ||||||||
Foreign currency losses, net | 18.5 | 15.7 | 25.0 | ||||||||
Miscellaneous, net | (0.6 | ) | 0.4 | 1.2 | |||||||
Other expenses, net | 146.8 | 105.1 | 118.1 | ||||||||
Income from continuing operations before income taxes | 17.9 | 119.7 | 127.2 | ||||||||
Provision for income taxes | 28.7 | 54.4 | 81.2 | ||||||||
(Loss) income from continuing operations, net of taxes | (10.8 | ) | 65.3 | 46.0 | |||||||
(Loss) income from discontinued operations, net of taxes | (4.9 | ) | (3.2 | ) | 1.3 | ||||||
Net (loss) income | $ | (15.7 | ) | $ | 62.1 | $ | 47.3 | ||||
Other comprehensive income (loss): | |||||||||||
Foreign currency translation adjustments, net of tax (a) | (0.5 | ) | (18.1 | ) | (24.6 | ) | |||||
Amortization of pension related costs, net of tax (b)(c) | 7.6 | 7.2 | 4.5 | ||||||||
Pension re-measurement, net of tax (d) | (14.3 | ) | (6.9 | ) | (69.6 | ) | |||||
Pension settlement, net of tax (e) | — | 17.3 | — | ||||||||
Revaluation of derivative financial instruments, net of reclassifications into earnings (f) | 0.8 | (1.6 | ) | (3.7 | ) | ||||||
Other comprehensive loss, net | (6.4 | ) | (2.1 | ) | (93.4 | ) | |||||
Total comprehensive (loss) income | $ | (22.1 | ) | $ | 60.0 | $ | (46.1 | ) |
(a) | Net of tax expense (benefit) of $1.1 million, $(5.1) million and $(2.1) million for 2016, 2015 and 2014, respectively. |
(b) | Net of tax expense of $1.3 million for each of 2016 and 2015 and $0.1 million for 2014. |
(c) | This other comprehensive income component is included in the computation of net periodic benefit (income) costs. See Note 14, “Pension and Post-Retirement Benefits,” for additional information regarding net periodic benefit (income) costs. |
(d) | Net of tax benefit of $4.1 million, $3.3 million and $42.0 million for 2016, 2015 and 2014, respectively. |
(e) | Net of tax expense of $3.7 million for 2015. |
(f) | Net of tax expense (benefit) of $0.5 million, $(1.0) million and $(2.3) million for 2016, 2015 and 2014, respectively. |
RCPC Preferred Stock | Additional Paid-In-Capital | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholder’s Deficiency | |||||||||||||||
Balance, January 1, 2014 | $ | 54.6 | $ | 946.5 | $ | (1,367.8 | ) | $ | (149.8 | ) | $ | (516.5 | ) | ||||||
Stock-based compensation amortization | 5.5 | 5.5 | |||||||||||||||||
Excess tax benefits from stock-based compensation | 0.1 | 0.1 | |||||||||||||||||
Net income | 47.3 | 47.3 | |||||||||||||||||
Other comprehensive loss, net (a) | (93.4 | ) | (93.4 | ) | |||||||||||||||
Balance, December 31, 2014 | $ | 54.6 | $ | 952.1 | $ | (1,320.5 | ) | $ | (243.2 | ) | $ | (557.0 | ) | ||||||
Stock-based compensation amortization | 5.1 | 5.1 | |||||||||||||||||
Excess tax benefits from stock-based compensation | 0.3 | 0.3 | |||||||||||||||||
Net income | 62.1 | 62.1 | |||||||||||||||||
Other comprehensive loss, net (a) | (2.1 | ) | (2.1 | ) | |||||||||||||||
Balance, December 31, 2015 | $ | 54.6 | $ | 957.5 | $ | (1,258.4 | ) | $ | (245.3 | ) | $ | (491.6 | ) | ||||||
Stock-based compensation amortization | 6.4 | 6.4 | |||||||||||||||||
Excess tax benefits from stock-based compensation | 0.5 | 0.5 | |||||||||||||||||
Net loss | (15.7 | ) | (15.7 | ) | |||||||||||||||
Other comprehensive loss, net (a) | (6.4 | ) | (6.4 | ) | |||||||||||||||
Balance, December 31, 2016 | $ | 54.6 | $ | 964.4 | $ | (1,274.1 | ) | $ | (251.7 | ) | $ | (506.8 | ) |
(a) | See Note 17, “Accumulated Other Comprehensive Loss,” regarding the changes in the accumulated balances for each component of other comprehensive loss during 2016, 2015 and 2014. |
Year Ended December 31, | |||||||||||
2016 | 2015 (as adjusted)(a) | 2014 (as adjusted)(a) | |||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net (loss) income | $ | (15.7 | ) | $ | 62.1 | $ | 47.3 | ||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | 123.2 | 103.2 | 102.6 | ||||||||
Foreign currency losses from re-measurement | 20.6 | 19.5 | 25.5 | ||||||||
Amortization of debt discount | 1.4 | 1.4 | 1.4 | ||||||||
Stock-based compensation amortization | 6.4 | 5.1 | 5.5 | ||||||||
Impairment charge | 23.4 | 9.7 | — | ||||||||
(Benefit from) provision for deferred income taxes | (6.9 | ) | 31.5 | 67.9 | |||||||
Loss on early extinguishment of debt, net | 16.9 | — | 2.0 | ||||||||
Amortization of debt issuance costs | 6.8 | 5.7 | 5.5 | ||||||||
Loss (gain) on sale of certain assets | 0.4 | (6.4 | ) | (2.1 | ) | ||||||
Pension and other post-retirement (income) costs | (0.6 | ) | 19.0 | (5.3 | ) | ||||||
Change in assets and liabilities, net of acquisitions: | |||||||||||
Increase in trade receivables | (59.5 | ) | (18.5 | ) | (5.5 | ) | |||||
Decrease (increase) in inventories | 74.5 | (30.6 | ) | 9.2 | |||||||
(Increase) decrease in prepaid expenses and other current assets | (19.5 | ) | (25.4 | ) | (2.7 | ) | |||||
(Decrease) increase in accounts payable | (12.6 | ) | 34.9 | 0.2 | |||||||
Increase (decrease) in accrued expenses and other current liabilities | 11.5 | 10.2 | (21.6 | ) | |||||||
Pension and other post-retirement plan contributions | (8.3 | ) | (18.1 | ) | (19.0 | ) | |||||
Purchases of permanent displays | (52.1 | ) | (47.4 | ) | (45.3 | ) | |||||
Other, net | 4.3 | (0.6 | ) | 8.4 | |||||||
Net cash provided by operating activities | 114.2 | 155.3 | 174.0 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Capital expenditures | (59.3 | ) | (48.3 | ) | (55.5 | ) | |||||
Business acquisitions, net of cash acquired | (1,028.7 | ) | (41.7 | ) | — | ||||||
Proceeds from the sale of certain assets | 0.5 | 6.2 | 3.4 | ||||||||
Net cash used in investing activities | (1,087.5 | ) | (83.8 | ) | (52.1 | ) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Net increase (decrease) in short-term borrowings and overdraft | — | 23.0 | (4.7 | ) | |||||||
Prepayments under the Old Acquisition Term Loan | (15.1 | ) | (19.3 | ) | (7.0 | ) | |||||
Prepayments under the 2011 Term Loan | (11.5 | ) | (12.1 | ) | — | ||||||
Repayment under the Non-Contributed Term Loan | — | — | (58.4 | ) | |||||||
Repayment of Old Acquisition Term Loan | (658.6 | ) | — | — | |||||||
Repayment of 2011 Term Loan | (651.4 | ) | — | — | |||||||
Borrowings under the 2016 Term Loan Facility | 1,791.0 | — | — | ||||||||
Repayments under the 2016 Term Loan Facility | (4.5 | ) | — | — | |||||||
Proceeds from the issuance of 6.25% Senior Notes | 450.0 | — | — | ||||||||
Payment of financing costs | (61.6 | ) | — | (1.8 | ) | ||||||
Other financing activities | (2.5 | ) | (3.7 | ) | (3.2 | ) | |||||
Net cash provided by (used in) financing activities | 835.8 | (12.1 | ) | (75.1 | ) | ||||||
Effect of exchange rate changes on cash and cash equivalents | (2.6 | ) | (7.8 | ) | (15.6 | ) | |||||
Net (decrease) increase in cash and cash equivalents | (140.1 | ) | 51.6 | 31.2 | |||||||
Cash and cash equivalents at beginning of period | 326.9 | 275.3 | 244.1 | ||||||||
Cash and cash equivalents at end of period | $ | 186.8 | $ | 326.9 | $ | 275.3 | |||||
Supplemental schedule of cash flow information: | |||||||||||
Cash paid during the period for: | |||||||||||
Interest | $ | 91.7 | $ | 79.9 | $ | 85.6 | |||||
Income taxes, net of refunds | $ | 21.9 | $ | 25.2 | $ | 20.9 |
Consolidated Balance Sheet | Total as reported at 12/31/2015 | Adjustment | Total as adjusted at 12/31/2015 | |||||||||
Deferred income taxes - current | $ | 58.0 | $ | (58.0 | ) | $ | — | |||||
Deferred income taxes - noncurrent | 38.5 | 11.3 | 49.8 | |||||||||
Other long-term liabilities | 117.5 | (46.7 | ) | 70.8 | ||||||||
Consolidated Statement of Cash Flows | Total as reported at 12/31/2015 | Adjustment | Total as adjusted at 12/31/2015 | |||||||||
Increase in prepaid expense and other current assets | $ | (32.6 | ) | $ | 7.2 | $ | (25.4 | ) | ||||
Increase in accrued expenses and other current liabilities | 10.2 | — | 10.2 | |||||||||
Increase in other, net | 6.6 | (7.2 | ) | (0.6 | ) | |||||||
Consolidated Statement of Cash Flows | Total as reported at 12/31/2014 | Adjustment | Total as adjusted at 12/31/2014 | |||||||||
Increase in prepaid expense and other current assets | $ | 4.5 | $ | (7.2 | ) | $ | (2.7 | ) | ||||
Decrease in accrued expenses and other current liabilities | (21.5 | ) | (0.1 | ) | (21.6 | ) | ||||||
Increase in other, net | 1.1 | 7.3 | 8.4 |
Consolidated Balance Sheet | Total as reported at 12/31/2015 | Adjustment | Total as adjusted at 12/31/2015 | |||||||||
Long-Term Debt | $ | 1,803.7 | $ | (20.0 | ) | $ | 1,783.7 | |||||
Other Assets | 104.1 | (20.0 | ) | 84.1 |
As of September 7, 2016 | |||
Purchase price of Elizabeth Arden common stock (1) | $ | 431.5 | |
Repayment of Elizabeth Arden senior notes (2) | 350.0 | ||
Repayment of Elizabeth Arden revolving credit facility, including accrued interest (3) | 142.5 | ||
Repayment of Elizabeth Arden Second lien credit facility, including accrued interest (3) | 25.0 | ||
Repurchase of Elizabeth Arden preferred stock (4) | 55.0 | ||
Payment of accrued interest and call premium on Elizabeth Arden Senior Notes (5) | 27.4 | ||
Payment of Elizabeth Arden dividends payable at Elizabeth Arden Acquisition Date (6) | 2.9 | ||
Total Purchase Price | $ | 1,034.3 |
(1) | All of Elizabeth Arden’s issued and outstanding common stock was canceled and extinguished on the Elizabeth Arden Acquisition Date and converted into the right to receive $14.00 in cash, without interest, less any required withholding taxes, that was paid by Products Corporation upon the completion of the Elizabeth Arden Acquisition. The $431.5 million purchase price for Elizabeth Arden common stock included the settlement of all outstanding Elizabeth Arden stock options and all outstanding Elizabeth Arden restricted share units at the Elizabeth Arden Acquisition Date for a total cash payment of $11.1 million. |
(2) | The purchase price included the repurchase of the entire $350.0 million aggregate principal amount outstanding of Elizabeth Arden’s 7.375% senior notes due 2021 (the “Elizabeth Arden Old Senior Notes”). |
(3) | The purchase price includes the repayment of the entire $142.0 million aggregate principal amount of borrowings outstanding as of the Elizabeth Arden Acquisition Date under Elizabeth Arden’s $300.0 million revolving credit facility and the entire $25.0 million aggregate principal amount of borrowings outstanding as of the Elizabeth Arden Acquisition Date under Elizabeth Arden's second lien credit facility, each of which facilities were terminated as of the Elizabeth Arden Acquisition Date; |
(4) | The purchase price includes $55.0 million that was paid to retire the entire $55.0 million liquidation preference of all of the issued and outstanding 50,000 shares of Elizabeth Arden preferred stock, par value $0.01 per share (the “Elizabeth Arden Preferred Stock”), which amount included a $5.0 million change of control premium. |
(5) | Interest on the Elizabeth Arden Old Senior Notes accrued at a rate of 7.375% per annum and was payable semi-annually on March 15 and September 15 of every year. The approximately $12.3 million of accrued and unpaid interest was calculated based on 176 days of accrued interest as of the Elizabeth Arden Acquisition Date. Pursuant to the terms of the indenture governing the Elizabeth Arden Old Senior Notes, upon a change in control, such notes were subject to repurchase at a price equal to 103.69% of their principal amount, plus accrued and unpaid interest and additional interest, if any, to the date of such repurchase. The repurchase of the Elizabeth Arden Old Senior Notes was consummated on October 7, 2016. |
(6) | The purchase price includes the payment of approximately $2.9 million in accrued dividends payable at the Elizabeth Arden Acquisition Date to the holders of the Elizabeth Arden Preferred Stock. |
Amounts recognized at September 7, 2016 (Provisional)(a) | Measurement Period Adjustments | Amounts recognized at September 7, 2016 (Adjusted) | |||||||||
Cash | $ | 41.1 | $ | — | $ | 41.1 | |||||
Accounts Receivable | 132.6 | — | 132.6 | ||||||||
Inventories (b) | 342.5 | (19.2 | ) | 323.3 | |||||||
Prepaid expenses and other current assets | 30.7 | — | 30.7 | ||||||||
Property and equipment | 91.2 | — | 91.2 | ||||||||
Deferred taxes, net (c) | 68.7 | — | 68.7 | ||||||||
Intangible assets (d) | 332.8 | 4.0 | 336.8 | ||||||||
Goodwill | 202.0 | 19.7 | 221.7 | ||||||||
Other assets (e) | 21.1 | (4.5 | ) | 16.6 | |||||||
Total assets acquired | 1,262.7 | — | 1,262.7 | ||||||||
Accounts payable | (116.0 | ) | — | (116.0 | ) | ||||||
Accrued expenses | (109.3 | ) | — | (109.3 | ) | ||||||
Other long-term liabilities | (3.1 | ) | — | (3.1 | ) | ||||||
Total liabilities acquired | (228.4 | ) | — | (228.4 | ) | ||||||
Total consideration transferred | $ | 1,034.3 | $ | — | $ | 1,034.3 |
Amounts Recognized at September 7, 2016 | Remaining Useful Life at the Elizabeth Arden Acquisition Date (in years) | ||||
Trademarks, indefinite-lived | $ | 142.0 | Indefinite | ||
Trademarks, finite-lived | 15.0 | 15.0 | |||
Technology | 2.5 | 10.0 | |||
Customer relationships | 123.0 | 16.0 | |||
License agreements | 22.0 | 19.0 | |||
Distribution rights | 31.0 | 18.0 | |||
Favorable lease commitments | 1.3 | 3.0 | |||
Total acquired intangible assets | $ | 336.8 |
Unaudited Pro Forma Results | |||||||
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
Net sales | $ | 2,858.9 | $ | 2,863.5 | |||
Income (loss) from continuing operations, before income taxes | (6.7 | ) | (65.6 | ) |
Year Ended December 31, | |||||||
($ in millions) | 2016(a) | 2015 | |||||
Interest Expense | |||||||
Pro forma interest on 2016 Senior Credit Facilities and 6.25% Senior Notes | $ | 105.3 | $ | 106.4 | |||
Reversal of Elizabeth Arden’s historical interest expense | (18.2 | ) | (26.2 | ) | |||
Company historical interest expense, as reflected in the historical consolidated financial statements | (76.1 | ) | (50.9 | ) | |||
Total Adjustment for Pro Forma Interest Expense | $ | 11.0 | $ | 29.3 | |||
Debt issuance costs | |||||||
Pro forma amortization of debt issuance costs | $ | 6.1 | $ | 8.1 | |||
Company historical amortization of debt issuance costs, as reflected in the historical consolidated financial statements | (3.3 | ) | (4.4 | ) | |||
Reversal of Elizabeth Arden’s historical amortization of debt issuance costs | (1.3 | ) | (1.5 | ) | |||
Total Adjustment for Pro Forma Amortization of Debt Issuance Costs | $ | 1.5 | $ | 2.2 |
Amounts Recognized at May 31, 2016 (Provisional) (a) | Measurement Period Adjustments | Amounts Recognized at May 31, 2016 (Adjusted) | |||||||||
Inventory | $ | 0.8 | $ | — | $ | 0.8 | |||||
Purchased Intangible Assets (b) | 19.7 | (2.5 | ) | 17.2 | |||||||
Goodwill | 8.6 | 2.5 | 11.1 | ||||||||
Total consideration transferred | $ | 29.1 | $ | — | $ | 29.1 |
Purchase Consideration | Total Net Assets Acquired | Purchased Intangible Assets | Goodwill | ||||||||||||
CBBeauty Group (1) | $ | 33.9 | $ | 2.3 | $ | 12.1 | $ | 19.5 | |||||||
American Crew and Revlon Professional Distribution Rights - Australia (2) | 4.4 | 1.4 | 2.9 | — | |||||||||||
Cutex U.S. (3) | 14.4 | 1.0 | 5.2 | 8.2 | |||||||||||
Total | $ | 52.7 | $ | 4.7 | $ | 20.2 | $ | 27.7 |
(1) | In April 2015, the Company completed the acquisition of the CBBeauty Group and certain of its related entities, (collectively "CBB" and such transaction, the "CBB Acquisition") for total cash consideration of $48.6 million. On the CBB acquisition date, the Company used cash on hand to pay 70% of the total cash consideration, or $33.9 million, net of certain measurement period adjustments. The remaining $14.0 million of the total cash consideration was payable in equal installments over 4 years from the CBB acquisition date. The first installment was paid in April 2016 and the remaining installments have been recorded as a component of SG&A expenses ratably over the remaining 3-year installment period. Purchased intangible assets include customer networks valued at $7.0 million, distribution rights valued at $3.5 million and trade names valued at $1.6 million, with weighted average remaining useful lives at the CBB acquisition date of 14, 5 and 8 years, respectively. (See Note 8, “Goodwill and Intangible Assets, Net,” for discussion of the non-cash impairment charge recorded in 2016 in connection with CBB). |
(2) | In March 2015, the Company re-acquired rights to distribute its American Crew and Revlon Professional brands in Australia. The Company acquired customer relationships valued at $2.9 million, with weighted average remaining useful lives of 10 years. |
(3) | In October 2015, the Company completed the Cutex U.S. Acquisition. The Company acquired inventory at fair value of approximately $1.0 million, trade names valued at $3.6 million and customer relationships valued at $1.6 million, with weighted average remaining useful lives of 10 years. In August of 2016, the Company recorded an additional $6.3 million as a component of goodwill related to purchase price adjustments following the completion of the Cutex U.S. Acquisition. |
Restructuring Charges and Other, Net | |||||||||||||||||||||||
Employee Severance and Other Personnel Benefits | Other | Total Restructuring Charges | Inventory Adjustments (a) | Other Related Charges(b) | Total Restructuring and Related Charges | ||||||||||||||||||
Charges incurred through December 31, 2016 | $ | 31.5 | $ | 0.2 | $ | 31.7 | $ | 0.5 | $ | 2.3 | $ | 34.5 |
Restructuring Charges and Other, Net | |||||||||||
Employee Severance and Other Personnel Benefits | Other | Total Restructuring Charges | |||||||||
Charges incurred through December 31, 2015 | $ | 9.4 | $ | 0.1 | $ | 9.5 | |||||
Charges incurred through December 31, 2016 | 0.6 | 0.7 | 1.3 | ||||||||
Cumulative charges incurred through December 31, 2016 | $ | 10.0 | $ | 0.8 | $ | 10.8 | |||||
Total expected charges | $ | 10.0 | $ | 2.2 | $ | 12.2 |
Utilized, Net | |||||||||||||||||||||||
Balance Beginning of Year | (Income) Expense, Net | Foreign Currency Translation | Cash | Non-cash | Balance End of Period | ||||||||||||||||||
2016 | |||||||||||||||||||||||
EA Integration Restructuring Program:(a) | |||||||||||||||||||||||
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:(b) | |||||||||||||||||||||||
Employee severance and other personnel benefits | 0.8 | — | — | (0.8 | ) | — | — | ||||||||||||||||
Other | 0.1 | — | — | (0.1 | ) | — | — | ||||||||||||||||
December 2013 Program:(c) | |||||||||||||||||||||||
Employee severance and other personnel benefits | 1.2 | — | — | — | — | 1.2 | |||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Other immaterial actions: (d) | |||||||||||||||||||||||
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 | ||||||||||
2015 | |||||||||||||||||||||||
2015 Efficiency Program: | |||||||||||||||||||||||
Employee severance and other personnel benefits | $ | — | $ | 9.4 | $ | — | $ | (2.8 | ) | $ | — | $ | 6.6 | ||||||||||
Other | — | 0.1 | — | — | — | 0.1 | |||||||||||||||||
2014 Integration Program: | |||||||||||||||||||||||
Employee severance and other personnel benefits | 9.6 | (3.4 | ) | (0.2 | ) | (5.2 | ) | — | 0.8 | ||||||||||||||
Other | 0.1 | 0.6 | — | (0.6 | ) | — | 0.1 | ||||||||||||||||
December 2013 Program: | |||||||||||||||||||||||
Employee severance and other personnel benefits | 1.2 | — | — | — | — | 1.2 | |||||||||||||||||
Other | — | — | — | — | — | — | |||||||||||||||||
Other immaterial actions: | |||||||||||||||||||||||
Employee severance and other personnel benefits | 3.1 | 1.7 | (0.1 | ) | (2.4 | ) | — | 2.3 | |||||||||||||||
Other | — | 2.1 | — | (1.4 | ) | — | 0.7 | ||||||||||||||||
Total restructuring reserve | $ | 14.0 | $ | 10.5 | $ | (0.3 | ) | $ | (12.4 | ) | $ | — | $ | 11.8 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Net sales (a) | $ | — | $ | — | $ | 2.6 | |||||
(Loss) income from discontinued operations, before taxes | (4.9 | ) | (3.2 | ) | 1.5 | ||||||
Provision for income taxes | — | — | 0.2 | ||||||||
(Loss) income from discontinued operations, net of taxes | (4.9 | ) | (3.2 | ) | 1.3 |
December 31, | |||||||
2016 | 2015 | ||||||
Cash and cash equivalents | $ | 1.7 | $ | 2.0 | |||
Trade receivables, net | 0.2 | 0.2 | |||||
Total current assets | 1.9 | 2.2 | |||||
Total assets | $ | 1.9 | $ | 2.2 | |||
Accounts payable | $ | 0.5 | $ | 0.7 | |||
Accrued expenses and other | 3.3 | 3.6 | |||||
Total current liabilities | 3.8 | 4.3 | |||||
Total liabilities | $ | 3.8 | $ | 4.3 |
December 31, | |||||||
2016 | 2015 | ||||||
Raw materials and supplies | $ | 72.9 | $ | 58.2 | |||
Work-in-process | 33.5 | 8.3 | |||||
Finished goods | 318.2 | 117.3 | |||||
$ | 424.6 | $ | 183.8 |
December 31, | |||||||
2016 | 2015 | ||||||
Prepaid expenses | $ | 34.6 | $ | 18.2 | |||
Other | 50.3 | 35.1 | |||||
$ | 84.9 | $ | 53.3 |
December 31, | |||||||
2016 | 2015 | ||||||
Land and improvements | $ | 10.4 | $ | 10.7 | |||
Building and improvements | 88.6 | 84.7 | |||||
Machinery, equipment and capital leases | 243.3 | 213.0 | |||||
Office furniture, fixtures and capitalized software | 122.7 | 118.1 | |||||
Counters and trade fixtures | 60.8 | — | |||||
Leasehold improvements | 46.0 | 29.0 | |||||
Construction-in-progress | 53.4 | 31.5 | |||||
Property, plant and equipment, gross | 625.2 | 487.0 | |||||
Accumulated depreciation and amortization | (304.7 | ) | (271.7 | ) | |||
Property, plant and equipment, net | $ | 320.5 | $ | 215.3 |
Consumer | Professional | Elizabeth Arden | Other | Total | |||||||||||||||
Balance at January 1, 2015 | $ | 217.9 | $ | 246.2 | $ | — | $ | — | $ | 464.1 | |||||||||
Goodwill acquired (a) | 1.9 | — | — | 19.5 | 21.4 | ||||||||||||||
Foreign currency translation adjustment | — | (5.5 | ) | — | (0.6 | ) | (6.1 | ) | |||||||||||
Goodwill impairment charge | (9.7 | ) | — | — | — | (9.7 | ) | ||||||||||||
Balance at December 31, 2015 | $ | 210.1 | $ | 240.7 | $ | — | $ | 18.9 | $ | 469.7 | |||||||||
Goodwill acquired (b) | 17.4 | — | 221.7 | — | 239.1 | ||||||||||||||
Foreign currency translation adjustment | — | (0.4 | ) | — | (2.2 | ) | (2.6 | ) | |||||||||||
Goodwill impairment charge | — | — | — | (16.7 | ) | (16.7 | ) | ||||||||||||
Balance at December 31, 2016 | $ | 227.5 | $ | 240.3 | $ | 221.7 | $ | — | $ | 689.5 | |||||||||
Cumulative goodwill impairment charges | $ | (9.7 | ) | $ | — | $ | — | $ | (16.7 | ) | $ | (26.4 | ) |
December 31, 2016 | |||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Useful Life (in Years) | ||||||||||
Finite-lived intangible assets: | |||||||||||||
Trademarks and Licenses | $ | 177.9 | $ | (47.9 | ) | $ | 130.0 | 13 | |||||
Customer relationships | 247.6 | (30.1 | ) | 217.5 | 14 | ||||||||
Patents and Internally-Developed IP | 20.3 | (6.1 | ) | 14.2 | 8 | ||||||||
Distribution rights | 31.0 | (0.5 | ) | 30.5 | 18 | ||||||||
Other | 1.3 | (0.2 | ) | 1.1 | 3 | ||||||||
Total finite-lived intangible assets | $ | 478.1 | $ | (84.8 | ) | $ | 393.3 | ||||||
Indefinite-lived intangible assets: | |||||||||||||
Trade Names | $ | 243.3 | $ | — | $ | 243.3 | |||||||
Total indefinite-lived intangible assets | $ | 243.3 | $ | — | $ | 243.3 | |||||||
Total intangible assets | $ | 721.4 | $ | (84.8 | ) | $ | 636.6 | ||||||
December 31, 2015 | |||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted Average Useful Life (in Years) | ||||||||||
Finite-lived intangible assets: | |||||||||||||
Trademarks and Licenses | $ | 145.0 | $ | (36.0 | ) | $ | 109.0 | 15 | |||||
Customer relationships | 118.8 | (20.5 | ) | 98.3 | 16 | ||||||||
Patents and Internally-Developed IP | 16.8 | (4.0 | ) | 12.8 | 10 | ||||||||
Distribution rights | 3.5 | (0.6 | ) | 2.9 | 5 | ||||||||
Total finite-lived intangible assets | $ | 284.1 | $ | (61.1 | ) | $ | 223.0 | ||||||
Indefinite-lived intangible assets: | |||||||||||||
Trade Names | $ | 95.0 | $ | — | $ | 95.0 | |||||||
Total indefinite-lived intangible assets | $ | 95.0 | $ | — | $ | 95.0 | |||||||
Total intangible assets | $ | 379.1 | $ | (61.1 | ) | $ | 318.0 |
Estimated Amortization Expense | |||
2017 | $ | 34.1 | |
2018 | 33.2 | ||
2019 | 30.6 | ||
2020 | 29.8 | ||
2021 | 28.7 | ||
Thereafter | 236.9 | ||
Total | $ | 393.3 |
December 31, 2016 | December 31, 2015 | ||||||
Compensation and related benefits | 75.8 | 75.6 | |||||
Advertising and promotional costs | 66.7 | 38.4 | |||||
Sales returns and allowances | 51.9 | 61.1 | |||||
Taxes | 39.0 | 20.8 | |||||
Restructuring reserve | 38.0 | 11.8 | |||||
Interest | 24.4 | 12.4 | |||||
Other | 86.9 | 52.3 | |||||
$ | 382.7 | $ | 272.4 |
December 31, 2016 | December 31, 2015 | ||||||
2016 Term Loan Facility: 2016 Term Loan due 2023, net of discounts and debt issuance costs (see (a) below) | $ | 1,747.8 | $ | — | |||
Old Term Loan Facility: Old Acquisition Term Loan due 2019, net of discounts and debt issuance costs (i) | — | 662.1 | |||||
Old Term Loan Facility: 2011 Term Loan due 2017, net of discounts and debt issuance costs (i) | — | 658.5 | |||||
2016 Revolving Credit Facility, due 2021 (see (b) below) | — | — | |||||
6.25% Senior Notes due 2024, net of debt issuance costs (see (c) below) | 439.1 | — | |||||
5.75% Senior Notes due 2021, net of debt issuance costs (see (d) below) | 493.8 | 492.5 | |||||
Spanish Government Loan due 2025 | 0.5 | 0.6 | |||||
2,681.2 | 1,813.7 | ||||||
Less current portion (ii) | (18.1 | ) | (30.0 | ) | |||
$ | 2,663.1 | $ | 1,783.7 |
Period | Optimal Redemption Premium Percentage | ||
2019 | 104.688 | % | |
2020 | 103.125 | % | |
2021 | 101.563 | % | |
2022 and thereafter | 100.000 | % |
Year | Percentage | ||
2016 | 104.313 | % | |
2017 | 102.875 | % | |
2018 | 101.438 | % | |
2019 and thereafter | 100.000 | % |
• | incur or guarantee additional indebtedness (“Limitation on Debt”); |
• | pay dividends, make repayments on indebtedness that is subordinated in right of payment to the 5.75% Senior Notes and make other “restricted payments” (“Limitation on Restricted Payments”); |
• | make certain investments; |
• | create liens on their assets to secure debt; |
• | enter into transactions with affiliates; |
• | merge, consolidate or amalgamate with another company (“Successor Company”); |
• | transfer and sell assets (“Limitation on Asset Sales”); and |
• | permit restrictions on the payment of dividends by Products Corporation’s subsidiaries (“Limitation on Dividends from Subsidiaries”). |
Years Ended December 31, | Long-Term Debt Maturities | ||||
2017 | $ | 18.1 | (a) | ||
2018 | 18.1 | (a) | |||
2019 | 18.1 | (a) | |||
2020 | 18.1 | (a) | |||
2021 | 518.1 | (b) | |||
Thereafter | 2,155.5 | ||||
Total long-term debt | 2,746.0 | ||||
Discounts and deferred finance charges | (64.8 | ) | |||
Total long-term debt, net of discounts and deferred finance charges | $ | 2,681.2 |
(a) | Amount consists primarily of the quarterly amortization payments required under the 2016 Term Loan Facility. |
• | Level 1: Fair valuing the asset or liability using observable inputs, such as quoted prices in active markets for identical assets or liabilities; |
• | Level 2: Fair valuing the asset or liability using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and |
• | Level 3: Fair valuing the asset or liability using unobservable inputs that reflect the Company’s own assumptions regarding the applicable asset or liability. |
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | |||||||||||||||
Derivatives: | |||||||||||||||
FX Contracts(a) | $ | 2.3 | $ | — | $ | 2.3 | $ | — | |||||||
Total assets at fair value | $ | 2.3 | $ | — | $ | 2.3 | $ | — | |||||||
Liabilities: | |||||||||||||||
Derivatives: | |||||||||||||||
FX Contracts(a) | $ | 1.1 | $ | — | $ | 1.1 | $ | — | |||||||
2013 Interest Rate Swap(b) | 4.7 | — | 4.7 | — | |||||||||||
Total liabilities at fair value | $ | 5.8 | $ | — | $ | 5.8 | $ | — |
Total | Level 1 | Level 2 | Level 3 | ||||||||||||
Assets: | |||||||||||||||
Derivatives: | |||||||||||||||
FX Contracts(a) | $ | 2.0 | $ | — | $ | 2.0 | $ | — | |||||||
Total assets at fair value | $ | 2.0 | $ | — | $ | 2.0 | $ | — | |||||||
Liabilities: | |||||||||||||||
Derivatives: | |||||||||||||||
FX Contracts(a) | $ | 0.6 | $ | — | $ | 0.6 | $ | — | |||||||
2013 Interest Rate Swap(b) | 6.5 | — | 6.5 | — | |||||||||||
Total liabilities at fair value | $ | 7.1 | $ | — | $ | 7.1 | $ | — |
(a) | The fair value of the Company’s foreign currency forward exchange contracts ("FX Contracts") was measured based on observable market transactions for similar transactions in actively quoted markets of spot and forward rates on the respective dates. See Note 13, “Financial Instruments." |
(b) | The fair value of Products Corporation's 2013 Interest Rate Swap was measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve on the respective dates. See Note 13, “Financial Instruments.” |
Fair Value | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Carrying Value | |||||||||||||||
Liabilities: | |||||||||||||||||||
Long-term debt, including current portion | $ | — | $ | 2,770.9 | $ | — | $ | 2,770.9 | $ | 2,681.2 |
Fair Value | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Carrying Value(a) | |||||||||||||||
Liabilities: | |||||||||||||||||||
Long-term debt, including current portion | $ | — | $ | 1,818.0 | $ | — | $ | 1,818.0 | $ | 1,813.7 |
(a) | Fair Values of Derivative Financial Instruments in the Consolidated Balance Sheets: |
Fair Values of Derivative Instruments | |||||||||||||||||||
Assets | Liabilities | ||||||||||||||||||
Balance Sheet | December 31, 2016 | December 31, 2015 | Balance Sheet | December 31, 2016 | December 31, 2015 | ||||||||||||||
Classification | Fair Value | Fair Value | Classification | Fair Value | Fair Value | ||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||
2013 Interest Rate Swap(i) | Prepaid expenses and other | $ | — | $ | — | Accrued expenses and other | $ | — | $ | 4.0 | |||||||||
Other assets | — | — | Other long-term liabilities | — | 2.5 | ||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||
FX Contracts(ii) | Prepaid expenses and other | $ | 2.3 | $ | 2.0 | Accrued Expenses | $ | 1.1 | $ | 0.6 | |||||||||
2013 Interest Rate Swap(i) | Prepaid expenses and other | $ | — | $ | — | Accrued expenses and other | $ | 3.7 | $ | — | |||||||||
Other assets | $ | — | $ | — | Other long-term liabilities | $ | 1.0 | $ | — |
Amount of Gain (Loss) Recognized in Other Comprehensive (Loss) Income | ||||||||||||
Year Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Derivatives designated as hedging instruments: | ||||||||||||
2013 Interest Rate Swap, net of tax (a) | $ | 0.8 | $ | (1.6 | ) | $ | (3.7 | ) |
(a) | Net of tax expense (benefit) of $0.5 million, $(1.0) million and $(2.3) million for 2016, 2015 and 2014, respectively. |
Statement of Operations Classification | Amount of Gain (Loss) Recognized in Net (Loss) Income | ||||||||||||
Year Ended December 31, | |||||||||||||
2016 | 2015 | 2014 | |||||||||||
Derivatives designated as hedging instruments: | |||||||||||||
2013 Interest Rate Swap | Interest Expense | $ | (4.3 | ) | $ | (2.6 | ) | $ | — | ||||
Derivatives not designated as hedging instruments: | |||||||||||||
FX Contracts | Foreign currency gain, net | $ | 2.1 | $ | 3.8 | $ | 0.5 | ||||||
2013 Interest Rate Swap | Miscellaneous, net | 0.7 | — |
Pension Plans | Other Post-Retirement Benefit Plans | ||||||||||||||
December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Change in Benefit Obligation: | |||||||||||||||
Benefit obligation - beginning of year | $ | (649.4 | ) | $ | (761.7 | ) | $ | (13.0 | ) | $ | (12.9 | ) | |||
Service cost | (0.5 | ) | (0.7 | ) | — | — | |||||||||
Interest cost | (20.7 | ) | (28.6 | ) | (0.4 | ) | (0.5 | ) | |||||||
Actuarial (loss) gain | (21.6 | ) | 44.4 | (1.0 | ) | (0.4 | ) | ||||||||
Lump sum settlement | — | 53.4 | — | — | |||||||||||
Other pension settlements | — | 0.8 | — | — | |||||||||||
Benefits paid | 42.8 | 38.3 | 1.0 | 0.8 | |||||||||||
Foreign currency translation adjustments | 8.9 | 4.7 | — | — | |||||||||||
Other | — | — | — | — | |||||||||||
Benefit obligation - end of year | $ | (640.5 | ) | $ | (649.4 | ) | $ | (13.4 | ) | $ | (13.0 | ) | |||
Change in Plan Assets: | |||||||||||||||
Fair value of plan assets - beginning of year | $ | 473.9 | $ | 567.7 | $ | — | $ | — | |||||||
Actual return on plan assets | 35.8 | (13.9 | ) | — | — | ||||||||||
Employer contributions | 7.3 | 17.3 | 1.0 | 0.8 | |||||||||||
Lump sum settlement | — | (53.4 | ) | — | — | ||||||||||
Other pension settlements | — | (0.8 | ) | — | — | ||||||||||
Benefits paid | (42.8 | ) | (38.3 | ) | (1.0 | ) | (0.8 | ) | |||||||
Foreign currency translation adjustments | (10.2 | ) | (4.7 | ) | — | — | |||||||||
Fair value of plan assets - end of year | $ | 464.0 | $ | 473.9 | $ | — | $ | — | |||||||
Unfunded status of plans at December 31, | $ | (176.5 | ) | $ | (175.5 | ) | $ | (13.4 | ) | $ | (13.0 | ) |
Pension Plans | Other Post-Retirement Benefit Plans | ||||||||||||||
December 31, | |||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Other long-term assets | $ | — | $ | 3.6 | $ | — | $ | — | |||||||
Accrued expenses and other | (6.1 | ) | (6.0 | ) | (0.8 | ) | (0.8 | ) | |||||||
Pension and other post-retirement benefit liabilities | (170.4 | ) | (173.1 | ) | (12.6 | ) | (12.2 | ) | |||||||
Total liability | $ | (176.5 | ) | $ | (175.5 | ) | $ | (13.4 | ) | $ | (13.0 | ) | |||
Accumulated other comprehensive loss, gross | $ | 266.6 | $ | 258.0 | $ | 3.6 | $ | 2.8 | |||||||
Income tax (benefit) expense | (44.3 | ) | (41.9 | ) | (0.4 | ) | (0.1 | ) | |||||||
Portion allocated to Revlon Holdings | (0.9 | ) | (0.9 | ) | (0.2 | ) | (0.2 | ) | |||||||
Accumulated other comprehensive loss, net | $ | 221.4 | $ | 215.2 | $ | 3.0 | $ | 2.5 |
December 31, | |||||||
2016 | 2015 | ||||||
Projected benefit obligation | $ | 640.5 | $ | 649.4 | |||
Accumulated benefit obligation | $ | 640.2 | $ | 649.0 | |||
Fair value of plan assets | $ | 464.0 | $ | 473.9 |
Pension Plans | Other Post-Retirement Benefit Plans | ||||||||||||||||||||||
Year Ended December 31, | |||||||||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||||||||
Net periodic benefit (income) costs: | |||||||||||||||||||||||
Service cost | $ | 0.5 | $ | 0.7 | $ | 0.8 | $ | — | $ | — | $ | — | |||||||||||
Interest cost | 20.7 | 28.6 | 30.1 | 0.4 | 0.5 | 0.5 | |||||||||||||||||
Expected return on plan assets | (31.0 | ) | (40.3 | ) | (41.3 | ) | — | — | — | ||||||||||||||
Amortization of actuarial loss | 8.8 | 8.4 | 4.5 | 0.2 | 0.1 | 0.1 | |||||||||||||||||
Lump sum settlement charge | — | 20.7 | — | — | — | — | |||||||||||||||||
Other pension settlements charge | — | 0.3 | — | — | — | — | |||||||||||||||||
$ | (1.0 | ) | $ | 18.4 | $ | (5.9 | ) | $ | 0.6 | $ | 0.6 | $ | 0.6 | ||||||||||
Portion allocated to Revlon Holdings | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | (0.1 | ) | — | ||||||||||||
$ | (1.1 | ) | $ | 18.3 | $ | (6.0 | ) | $ | 0.5 | $ | 0.5 | $ | 0.6 |
Year Ended December 31, | |||||||
2016 | 2015 | ||||||
Net periodic benefit (income) costs: | |||||||
Cost of sales | $ | (2.5 | ) | $ | 6.1 | ||
Selling, general and administrative expense | 1.9 | 12.7 | |||||
$ | (0.6 | ) | $ | 18.8 |
Pension Benefits | Post-Retirement Benefits | Total | |||||||||
Net actuarial loss | $ | 266.6 | $ | 3.6 | $ | 270.2 | |||||
Prior service cost | — | — | — | ||||||||
Accumulated Other Comprehensive Loss, Gross | 266.6 | 3.6 | 270.2 | ||||||||
Income tax benefit | (44.3 | ) | (0.4 | ) | (44.7 | ) | |||||
Portion allocated to Revlon Holdings | (0.9 | ) | (0.2 | ) | (1.1 | ) | |||||
Accumulated Other Comprehensive Loss, Net | $ | 221.4 | $ | 3.0 | $ | 224.4 |
U.S. Plans | International Plans | ||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||
Discount rate | 3.92 | % | 4.15 | % | 2.66 | % | 3.68 | % | |||
Rate of future compensation increases | 3.50 | % | 3.50 | % | 2.20 | % | 2.22 | % |
U.S. Plans | International Plans | ||||||||||||||||
2016 | 2015 | 2014 | 2016 | 2015 | 2014 | ||||||||||||
Discount rate | 4.15 | % | 3.89 | % | 4.68 | % | 3.68 | % | 3.74 | % | 4.48 | % | |||||
Expected long-term return on plan assets | 7.00 | % | 7.50 | % | 7.75 | % | 6.00 | % | 6.00 | % | 6.00 | % | |||||
Rate of future compensation increases | 3.50 | % | 3.00 | % | 3.00 | % | 2.22 | % | 2.33 | % | 3.40 | % |
Target Ranges | |||
U.S. Plans | International Plans | ||
Asset Class: | |||
Common and preferred stock | 0% - 10% | — | |
Mutual funds | 20% - 30% | — | |
Fixed income securities | 10% - 30% | — | |
Common and collective funds | 25% - 55% | 100% | |
Hedge funds | 0% - 15% | — | |
Group annuity contract | 0% - 5% | — | |
Cash and other investments | 0% - 10% | — |
U.S. Plans | International Plans | ||||||||||||||
2016 | 2015 | 2016 | 2015 | ||||||||||||
Fair value of plan assets | $ | 400.5 | $ | 407.2 | $ | 63.5 | $ | 66.7 |
• | Common and preferred stock: The fair values of investments included in the common and preferred stock asset class generally reflect the closing price reported on the major market where the individual securities are traded. The Company classifies common and preferred stock investments within Level 1 of the fair value hierarchy. |
• | Mutual funds: The fair values of investments included in the mutual funds asset class are determined using net asset value (“NAV”) provided by the applicable fund administrators. 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 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 primarily within Level 2 of the fair value hierarchy. |
• | Common and collective funds: The fair values of investments included in the common and collective funds asset class are determined using NAV provided by the applicable fund administrators. 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 Company classifies common and collective fund investments within Level 2 of the fair value hierarchy. |
• | Hedge funds: The hedge fund asset class includes investments in hedge funds that, in turn, 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 applicable fund administrators. The NAV is based on securities listed or quoted on a national securities exchange or market, or traded in the over-the-counter market, and is valued at the closing quotation posted by that exchange or trading system. Securities not listed or quoted on a national securities exchange or market are valued primarily through observable |
• | Group annuity contract: The group annuity contract asset class primarily invests in equities, corporate bonds and government bonds. The fair values of securities listed or quoted on a national securities exchange or market, or traded in the over-the-counter market, are valued at the closing quotation posted by that exchange or trading system. Securities not listed or quoted on a national securities exchange or market are valued primarily through observable market information or broker quotes. The Company classifies group annuity contract investments within Level 2 of the fair value hierarchy. |
• | 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. |
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Common and Preferred Stock: | |||||||||||||||
U.S. small/mid cap equity | $ | 15.5 | $ | 15.5 | $ | — | $ | — | |||||||
Mutual Funds(a): | |||||||||||||||
Corporate bonds | 14.3 | 14.3 | — | — | |||||||||||
Government bonds | 11.9 | 11.9 | — | — | |||||||||||
U.S. large cap equity | 0.1 | 0.1 | — | — | |||||||||||
International equities | 3.9 | 3.9 | — | — | |||||||||||
Emerging markets international equity | 6.3 | 6.3 | — | — | |||||||||||
Other | 3.0 | 3.0 | — | — | |||||||||||
Fixed Income Securities: | |||||||||||||||
Corporate bonds | 41.0 | — | 41.0 | — | |||||||||||
Government bonds | 13.9 | — | 13.9 | — | |||||||||||
Common and Collective Funds(a): | |||||||||||||||
Corporate bonds | 56.0 | 54.3 | 1.7 | — | |||||||||||
Government bonds | 68.4 | 57.0 | 11.4 | — | |||||||||||
U.S. large cap equity | 68.8 | 67.5 | 1.3 | — | |||||||||||
U.S. small/mid cap equity | 20.0 | 20.0 | — | — | |||||||||||
International equities | 67.0 | 34.9 | 32.1 | — | |||||||||||
Emerging markets international equity | 15.3 | 9.4 | 5.9 | — | |||||||||||
Cash and cash equivalents | (7.9 | ) | (7.9 | ) | — | — | |||||||||
Other | 5.5 | 2.4 | 3.1 | — | |||||||||||
Hedge Funds(a): | |||||||||||||||
Corporate bonds | 4.5 | — | 4.5 | — | |||||||||||
Government bonds | 6.5 | — | 6.5 | — | |||||||||||
U.S. large cap equity | 2.1 | — | 2.1 | — | |||||||||||
Cash and cash equivalents | 2.4 | — | 2.4 | — | |||||||||||
Other | 31.9 | — | 31.9 | — | |||||||||||
Group Annuity Contract | 3.0 | — | 3.0 | — | |||||||||||
Cash and cash equivalents | 10.6 | 10.6 | — | — | |||||||||||
Fair value of plan assets at December 31, 2016 | $ | 464.0 | $ | 303.2 | $ | 160.8 | $ | — |
(a) | The investments in mutual funds, common and collective funds and hedge 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 Company’s direct ownership unit of account. |
Total | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | ||||||||||||
Common and Preferred Stock: | |||||||||||||||
U.S. small/mid cap equity | $ | 14.6 | $ | 14.6 | $ | — | $ | — | |||||||
Mutual Funds(a): | |||||||||||||||
Corporate bonds | 14.9 | 14.9 | — | — | |||||||||||
Government bonds | 12.9 | 12.9 | — | — | |||||||||||
U.S. large cap equity | 0.7 | 0.7 | — | — | |||||||||||
International equities | 3.0 | 3.0 | — | — | |||||||||||
Emerging markets international equity | 5.1 | 5.1 | — | — | |||||||||||
Other | 2.0 | 2.0 | — | — | |||||||||||
Fixed Income Securities: | |||||||||||||||
Corporate bonds | 41.7 | — | 41.7 | — | |||||||||||
Government bonds | 6.9 | — | 6.9 | — | |||||||||||
Common and Collective Funds(a)(b): | |||||||||||||||
Corporate bonds | 61.5 | 59.9 | 1.6 | — | |||||||||||
Government bonds | 56.8 | 43.4 | 13.4 | — | |||||||||||
U.S. large cap equity | 71.9 | 70.4 | 1.5 | — | |||||||||||
U.S. small/mid cap equity | 15.5 | 15.5 | — | — | |||||||||||
International equities | 77.8 | 36.8 | 41.0 | — | |||||||||||
Emerging markets international equity | 14.5 | 8.0 | 6.5 | — | |||||||||||
Cash and cash equivalents | (0.8 | ) | (0.8 | ) | — | — | |||||||||
Other | 5.5 | 2.5 | 3.0 | — | |||||||||||
Hedge Funds(a): | |||||||||||||||
Corporate bonds | 3.8 | — | 3.8 | — | |||||||||||
Government bonds | 8.6 | — | 8.6 | — | |||||||||||
U.S. large cap equity | 3.8 | — | 3.8 | — | |||||||||||
Cash and cash equivalents | 4.6 | — | 4.6 | — | |||||||||||
Other | 32.1 | — | 32.1 | — | |||||||||||
Group Annuity Contract | 2.8 | — | 2.8 | — | |||||||||||
Cash and cash equivalents | 13.7 | 13.7 | — | — | |||||||||||
Fair value of plan assets at December 31, 2015 | $ | 473.9 | $ | 302.6 | $ | 171.3 | — |
(a) | The investments in mutual funds, common and collective funds and hedge 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 Company’s direct ownership unit of account. |
(b) | Commencing in 2016, the Company determined that certain of its investments in common and collective funds met certain criteria to be considered Level 1 investments within the fair value hierarchy. As such, the 2015 fair value hierarchy schedule was updated to conform to the current presentation. |
Total Pension Benefits | Total Other Benefits | ||||||
2017 | $ | 42.0 | $ | 1.1 | |||
2018 | 41.9 | 1.1 | |||||
2019 | 41.9 | 1.1 | |||||
2020 | 42.5 | 1.1 | |||||
2021 | 42.7 | 1.1 | |||||
Years 2022 to 2026 | 204.8 | 5.1 |
Stock Options (000's) | Weighted Average Exercise Price Per Share | |||||
Outstanding at January 1, 2014 | 0.8 | $ | 27.50 | |||
Forfeited and expired | (0.8 | ) | 27.50 | |||
Outstanding at December 31, 2014 | — | — |
Restricted Stock (000's) | Weighted Average Grant Date Fair Value Per Share | |||||
Outstanding at January 1, 2014 | 120.0 | $ | 24.80 | |||
Granted | 693.4 | 31.01 | ||||
Vested(a) | (40.0 | ) | 24.80 | |||
Outstanding at December 31, 2014 | 773.4 | 30.37 | ||||
Granted | 220.6 | 29.46 | ||||
Vested(a) | (171.7 | ) | 29.09 | |||
Forfeited | (57.5 | ) | 30.44 | |||
Outstanding at December 31, 2015 | 764.8 | 30.39 | ||||
Granted | 125.5 | 31.86 | ||||
Vested(a) | (221.7 | ) | 29.51 | |||
Forfeited | (257.6 | ) | 31.05 | |||
Outstanding at December 31, 2016(b) | 411.0 | 30.78 |
(a) | Of the amounts vested during 2016, 2015 and 2014, 92,092, 82,740 and 22,328 shares, respectively, were withheld by the Company to satisfy certain grantees’ minimum withholding tax requirements, which withheld shares became Revlon treasury stock and are not sold on the open market. |
(b) | Excludes the Garcia Restricted Stock Grant and the Figuereo Restricted Stock Grant provided for under their respective employment agreements, as such grants would only be made in April 2017 if the circumstances triggering the alternative cash payments have not occurred. |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Income (loss) from continuing operations before income taxes: | |||||||||||
United States | $ | 13.6 | $ | 123.4 | $ | 146.9 | |||||
Foreign | 4.3 | (3.7 | ) | (19.7 | ) | ||||||
$ | 17.9 | $ | 119.7 | $ | 127.2 | ||||||
Provision for income taxes: | |||||||||||
United States federal | $ | 11.0 | $ | 40.9 | $ | 58.2 | |||||
State and local | 2.1 | 16.7 | 17.9 | ||||||||
Foreign | 15.6 | (3.2 | ) | 5.1 | |||||||
$ | 28.7 | $ | 54.4 | $ | 81.2 | ||||||
Current: | |||||||||||
United States federal | $ | 13.1 | $ | (2.7 | ) | $ | 2.6 | ||||
State and local | 2.3 | 3.9 | 3.5 | ||||||||
Foreign | 20.2 | 21.7 | 7.2 | ||||||||
35.6 | 22.9 | 13.3 | |||||||||
Deferred: | |||||||||||
United States federal | (2.1 | ) | 43.6 | 55.6 | |||||||
State and local | (0.2 | ) | 12.8 | 14.4 | |||||||
Foreign | (4.6 | ) | (24.9 | ) | (2.1 | ) | |||||
(6.9 | ) | 31.5 | 67.9 | ||||||||
Total provision for income taxes | $ | 28.7 | $ | 54.4 | $ | 81.2 |
Year Ended December 31, | |||||||||||
2016 | 2015 | 2014 | |||||||||
Computed income tax expense | $ | 6.3 | $ | 41.9 | $ | 44.5 | |||||
State and local taxes, net of U.S. federal income tax benefit | 1.7 | 10.9 | 20.5 | ||||||||
Foreign and U.S. tax effects attributable to operations outside the U.S. | 3.1 | 13.6 | 5.8 | ||||||||
Net establishment (release) of valuation allowance | 2.0 | (15.5 | ) | 6.4 | |||||||
Foreign dividends and earnings taxable in the U.S. | 1.7 | 3.2 | 5.4 | ||||||||
Impairment for which there is no tax benefit | 8.9 | — | — | ||||||||
Acquisition costs for which there is no tax benefit | 0.7 | — | — | ||||||||
Other | 4.3 | 0.3 | (1.4 | ) | |||||||
Total provision for income taxes | $ | 28.7 | $ | 54.4 | $ | 81.2 |
December 31, | |||||||
2016 | 2015 | ||||||
Deferred tax assets: | |||||||
Inventories | $ | 30.9 | $ | 7.3 | |||
Net operating loss carryforwards - U.S. | 133.0 | 27.6 | |||||
Net operating loss carryforwards - foreign | 50.5 | 51.4 | |||||
Employee benefits | 91.7 | 96.7 | |||||
Sales related reserves | 23.9 | 25.8 | |||||
Foreign currency translation adjustment | 9.9 | 11.0 | |||||
Other | 85.2 | 52.7 | |||||
Total gross deferred tax assets | 425.1 | 272.5 | |||||
Less valuation allowance | (81.4 | ) | (47.1 | ) | |||
Total deferred tax assets, net of valuation allowance | 343.7 | 225.4 | |||||
Deferred tax liabilities: | |||||||
Plant, equipment and other assets | (26.0 | ) | (29.9 | ) | |||
Intangibles | (132.4 | ) | (82.4 | ) | |||
Other | (57.6 | ) | (63.2 | ) | |||
Total gross deferred tax liabilities | (216.0 | ) | (175.5 | ) | |||
Net deferred tax assets | $ | 127.7 | $ | 49.9 |
Balance at January 1, 2015 | $ | 62.0 | |
Increase based on tax positions taken in a prior year | 5.6 | ||
Decrease based on tax positions taken in a prior year | (5.8 | ) | |
Increase based on tax positions taken in the current year | 8.5 | ||
Decrease resulting from the lapse of statutes of limitations | (5.3 | ) | |
Balance at December 31, 2015 | 65.0 | ||
Increase based on tax positions taken in a prior year | 25.9 | ||
Decrease based on tax positions taken in a prior year | (1.3 | ) | |
Increase based on tax positions taken in the current year | 9.3 | ||
Decrease resulting from the lapse of statutes of limitations | (5.6 | ) | |
Balance at December 31, 2016 | $ | 93.3 |
Foreign Currency Translation | Actuarial (Loss) Gain on Post-retirement Benefits | Deferred Gain (Loss) - Hedging | Other | Accumulated Other Comprehensive Loss | |||||||||||||||
Balance at January 1, 2014 | $ | 19.2 | $ | (170.5 | ) | $ | 1.5 | $ | — | $ | (149.8 | ) | |||||||
Currency translation adjustment, net of tax of $2.1 million | (24.6 | ) | — | — | — | (24.6 | ) | ||||||||||||
Amortization of pension related costs, net of tax of $(0.1) million(a) | — | 4.5 | — | — | 4.5 | ||||||||||||||
Pension re-measurement, net of tax of $42.0 million | — | (69.6 | ) | — | — | (69.6 | ) | ||||||||||||
Revaluation of derivative financial instrument, net of tax of $2.3 million(b) | — | — | (3.7 | ) | — | (3.7 | ) | ||||||||||||
Other | — | 0.3 | — | (0.3 | ) | — | |||||||||||||
Balance at December 31, 2014 | (5.4 | ) | (235.6 | ) | (2.2 | ) | (0.3 | ) | (243.2 | ) | |||||||||
Currency translation adjustment, net of tax of $5.1 million | (18.1 | ) | — | — | — | (18.1 | ) | ||||||||||||
Amortization of pension related costs, net of tax of $(1.3) million(a) | — | 7.2 | — | — | 7.2 | ||||||||||||||
Pension re-measurement, net of tax of $3.3 million | — | (6.9 | ) | — | — | (6.9 | ) | ||||||||||||
Settlement of certain pension liabilities, net of tax of $(3.7) million(b) | — | 17.3 | — | — | 17.3 | ||||||||||||||
Revaluation of derivative financial instrument, net of amounts reclassified into earnings and tax of $1.0 million(c) | — | — | (1.6 | ) | — | (1.6 | ) | ||||||||||||
Balance at December 31, 2015 | $ | (23.5 | ) | $ | (217.7 | ) | $ | (3.8 | ) | $ | (0.3 | ) | $ | (245.3 | ) | ||||
Currency translation adjustment, net of tax of $(1.1) million | (0.5 | ) | — | — | — | (0.5 | ) | ||||||||||||
Amortization of pension related costs, net of tax of $(1.3) million(a) | — | 7.6 | — | — | 7.6 | ||||||||||||||
Pension re-measurement, net of tax of $4.1 million | — | (14.3 | ) | — | — | (14.3 | ) | ||||||||||||
Revaluation of derivative financial instrument, net of amounts reclassified into earnings and tax of $(0.5) million(b) | — | — | 0.8 | — | 0.8 | ||||||||||||||
Other comprehensive (loss) income | (0.5 | ) | (6.7 | ) | 0.8 | — | (6.4 | ) | |||||||||||
Balance at December 31, 2016 | $ | (24.0 | ) | $ | (224.4 | ) | $ | (3.0 | ) | $ | (0.3 | ) | $ | (251.7 | ) |
(a) | Amounts represent the change in accumulated other comprehensive loss as a result of the amortization of actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 14, “Pension and Post-retirement Benefits,” for further discussion of the Company’s pension and other post-retirement plans. |
(b) | Represents the after-tax effective portion of the changes in fair value of the Company’s 2013 Interest Rate Swap, net of amounts reclassified into earnings during 2016 and 2015. See Note 13, "Financial Instruments," for further discussion of the 2013 Interest Rate Swap. |
2013 Interest Rate Swap | ||||
Beginning accumulated losses at December 31, 2015 | $ | (3.8 | ) | |
Reclassifications into earnings (net of $1.6 million tax expense)(a) | 2.7 | |||
Change in fair value (net of $1.1 million tax benefit) | (1.9 | ) | ||
Ending accumulated losses at December 31, 2016 | $ | (3.0 | ) |
(a) | Reclassified to interest expense. |
2013 Interest Rate Swap | ||||
Beginning accumulated losses at December 31, 2014 | $ | (2.2 | ) | |
Reclassifications into earnings (net of $1.0 million tax expense)(a) | 1.6 | |||
Change in fair value (net of $2.0 million tax benefit) | (3.2 | ) | ||
Ending accumulated losses at December 31, 2015 | $ | (3.8 | ) |
(a) | Reclassified to interest expense. |
• | Consumer - The Company’s Consumer segment is comprised of products that are marketed, distributed and sold in large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, the Internet/e-commerce, television shopping, department stores, one-stop shopping beauty retailers, specialty cosmetic stores and perfumeries in the U.S. and internationally under brands such as 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 Consumer segment also includes a skin care line under the Natural Honey brand and hair color line under the Llongueras brand (licensed from a third party), that are sold in large volume retailers and other retailers, primarily in Spain. In October 2015 and in May 2016, the Company completed the Cutex U.S. Acquisition and the Cutex International Acquisition and the results of operations relating to the sales of Cutex nail care products are included within the Consumer segment. |
• | Professional - The Company’s Professional segment markets, distributes and sells professional products primarily to hair and nail salons and professional salon distributors in the U.S. and internationally under brands such as Revlon Professional in hair color, hair care and hair treatments; CND in nail polishes and nail enhancements, including CND Shellac and CND Vinylux nail polishes; and American Crew in men’s grooming products. The Professional segment also includes a multi-cultural hair care line consisting of Creme of Nature hair care products, which are sold in both professional salons and in large volume retailers and other retailers, primarily in the U.S. |
• | Elizabeth Arden - The Elizabeth Arden segment markets, distributes and sells fragrances, skin care and color cosmetics to prestige retailers, specialty stores, the mass retail channel, distributors, perfumeries, department stores, boutiques, travel retailers and other retailers in the U.S. and internationally, as well as direct sales to consumers via its Elizabeth Arden Red Door branded retail stores, Elizabeth Arden.com e-commerce business and Elizabeth Arden Red Door spa beauty salons and spas under brands such as Skin Illuminating, SUPERSTART, Prevage, Eight Hour Cream, Elizabeth Arden Ceramide and Visible Difference in the Elizabeth Arden skin care brands; Elizabeth Arden Red Door, Elizabeth Arden 5th Avenue, Elizabeth Arden Green Tea and UNTOLD in Elizabeth Arden fragrances; Juicy Couture, John Varvatos and Wildfox Couture in designer fragrances; and Curve, Elizabeth Taylor, Britney Spears, Christina Aguilera, Halston, Ed Hardy, Geoffrey Beene, Alfred Sung, Giorgio Beverly Hills, Lucky Brand, PS Fine Cologne for Men, White Shoulders and Jennifer Aniston in heritage fragrances. |
• | Other - The Other segment includes the operating results of the CBB business and related purchase accounting for the CBB Acquisition. CBB develops, markets and distributes fragrances and other beauty products under various celebrity, lifestyle and fashion brands licensed from third parties, principally through department stores and selective distribution in international territories. The results included within the Other segment are not material to the Company’s consolidated results of operations. |
Twelve Months Ended December 31, | ||||||||||||
2016 | 2015 | 2014 | ||||||||||
Segment Net Sales: | ||||||||||||
Consumer | $ | 1,389.8 | $ | 1,414.8 | $ | 1,438.3 | ||||||
Professional | 476.5 | 471.1 | 502.7 | |||||||||
Elizabeth Arden | 441.4 | — | — | |||||||||
Other | 26.3 | 28.4 | — | |||||||||
Total | $ | 2,334.0 | $ | 1,914.3 | $ | 1,941.0 | ||||||
Segment Profit: | ||||||||||||
Consumer | $ | 349.2 | $ | 360.2 | $ | 339.4 | ||||||
Professional | 99.4 | 103.9 | 104.8 | |||||||||
Elizabeth Arden | 68.2 | — | — | |||||||||
Other | (2.7 | ) | 1.4 | — | ||||||||
Total | $ | 514.1 | $ | 465.5 | $ | 444.2 | ||||||
Reconciliation: | ||||||||||||
Segment Profit | $ | 514.1 | $ | 465.5 | $ | 444.2 | ||||||
Less: | ||||||||||||
Unallocated corporate expenses(a) | 89.4 | 79.0 | 59.2 | |||||||||
Depreciation and amortization | 123.2 | 103.2 | — | 102.6 | ||||||||
Non-cash stock compensation expense | 6.4 | 5.1 | 5.5 | |||||||||
Non-Operating items: | ||||||||||||
Restructuring and related charges | 36.8 | 11.6 | 22.6 | |||||||||
Acquisition and integration costs | 43.2 | 8.0 | 6.4 | |||||||||
Elizabeth Arden 2016 Business Transformation Program | 2.6 | — | — | — | ||||||||
Elizabeth Arden inventory purchase accounting adjustment, cost of sales | 20.7 | — | — | — | ||||||||
Inventory purchase accounting adjustment, cost of sales | 0.2 | 0.9 | 2.6 | |||||||||
Pension Lump sum settlement | — | 20.7 | — | |||||||||
Impairment charge | 23.4 | 9.7 | — | |||||||||
Deferred Compensation related to CBB Acquisition | 3.5 | 2.5 | — | |||||||||
Operating Income | 164.7 | 224.8 | 245.3 | |||||||||
Less: | ||||||||||||
Interest Expense | 105.2 | 83.3 | 84.4 | |||||||||
Amortization of debt issuance costs | 6.8 | 5.7 | 5.5 | |||||||||
Loss on early extinguishment of debt | 16.9 | — | 2.0 | |||||||||
Foreign currency losses, net | 18.5 | 15.7 | 25.0 | |||||||||
Miscellaneous, net | (0.6 | ) | 0.4 | 1.2 | ||||||||
Income from continuing operations before income taxes | $ | 17.9 | $ | 119.7 | $ | 127.2 |
(a) | During the second quarter of 2015, the Company removed pension-related costs for its U.S. qualified defined benefit pension plans from the measurement of its operating segment results. As a result, $8.2 million of pension-related costs were reclassified from the measurement of Consumer segment profit and included as a component of unallocated corporate expenses for 2014. |
Year Ended December 31, | |||||||||||||||||
2016 | 2015 | 2014 | |||||||||||||||
Geographic area: | |||||||||||||||||
Net sales: | |||||||||||||||||
United States | $ | 1,271.2 | 54% | $ | 1,043.7 | 55% | $ | 1,021.9 | 53% | ||||||||
International | 1,062.8 | 46% | 870.6 | 45% | 919.1 | 47% | |||||||||||
$ | 2,334.0 | $ | 1,914.3 | $ | 1,941.0 |
December 31, 2016 | December 31, 2015 | ||||||||||
Long-lived assets, net: | |||||||||||
United States | $ | 1,494.3 | 85% | $ | 854.7 | 79% | |||||
International | 255.4 | 15% | 232.4 | 21% | |||||||
$ | 1,749.7 | $ | 1,087.1 |
Year Ended December 31, | |||||||||||||||||
2016 | 2015 | 2014 | |||||||||||||||
Classes of similar products: | |||||||||||||||||
Net sales: | |||||||||||||||||
Color cosmetics | $ | 998.3 | 43% | $ | 1,022.4 | 53% | $ | 1,030.1 | 53% | ||||||||
Hair care | 544.3 | 23% | 522.1 | 27% | 541.7 | 28% | |||||||||||
Fragrance | 408.4 | 17% | 80.8 | 4% | 54.1 | 3% | |||||||||||
Beauty care | 294.4 | 13% | 277.5 | 15% | 299.7 | 15% | |||||||||||
Skin care | 88.6 | 4% | 11.5 | 1% | 15.4 | 1% | |||||||||||
$ | 2,334.0 | $ | 1,914.3 | $ | 1,941.0 |
Minimum Rental Commitments | Total | 2017 | 2018 | 2019 | 2020 | 2021 | Thereafter | |||||||||||||||||||||
Capital leases | $ | 3.5 | $ | 1.9 | $ | 1.0 | $ | 0.5 | $ | 0.1 | $ | — | $ | — | ||||||||||||||
Operating leases | 216.0 | 38.9 | 34.7 | 30.0 | 21.8 | 20.0 | 70.6 |
Year Ended December 31, 2016 | |||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||
Net sales | $ | 439.6 | $ | 488.9 | $ | 604.8 | $ | 800.7 | |||||||
Gross profit | 285.7 | 317.4 | 361.4 | 452.4 | |||||||||||
Income (loss) from continuing operations, net of taxes(a)(b) | 12.6 | 11.8 | (3.0 | ) | (32.2 | ) | |||||||||
Income (loss) from discontinued operations, net of taxes(e) | 0.4 | (2.5 | ) | (0.2 | ) | (2.6 | ) | ||||||||
Net income (loss)(a)(b) | 13.0 | 9.3 | (3.2 | ) | (34.8 | ) |
Year Ended December 31, 2015 | |||||||||||||||
1st Quarter | 2nd Quarter | 3rd Quarter | 4th Quarter | ||||||||||||
Net sales | $ | 438.5 | $ | 482.4 | $ | 471.5 | $ | 521.9 | |||||||
Gross profit | 296.2 | 321.1 | 303.7 | 325.5 | |||||||||||
(Loss) Income from continuing operations, net of taxes(c)(d) | 0.7 | 27.5 | 9.4 | 27.7 | |||||||||||
(Loss) from discontinued operations, net of taxes(e) | (0.1 | ) | — | (1.7 | ) | (1.4 | ) | ||||||||
Net income (c)(d) | 0.6 | 27.5 | 7.7 | 26.3 |
(a) | Income from continuing operations, net income and basic and diluted income per share for the fourth quarter of 2016 were unfavorably impacted by: (i) $31.7 million of restructuring charges related to the EA Integration Restructuring Charges (See Note 3, "Restructuring Charges"); and (ii) $16.7 million and $6.7 million of non-cash impairment charges on goodwill and intangible assets, respectively, within the Other reporting unit (see Note 8, "Goodwill and Intangible Assets, Net"). |
(b) | Income from continuing operations and net income for the third quarter of 2016 were unfavorably impacted by $33.5 million of acquisition and integration costs related to the Elizabeth Arden Acquisition and a $16.9 million loss on early extinguishment of debt related to debt refinancing actions. See Note 2, "Business Combinations," and Note 11, "Long Term Debt," for further discussion on the Elizabeth Arden Acquisition and debt refinancing actions, respectively. |
(c) | Income from continuing operations and net income for the first quarter of 2015 were unfavorably impacted by foreign currency losses, net, of $15.9 million, primarily due to the unfavorable impacts of the revaluation of certain U.S. Dollar denominated intercompany payables, as well as a $1.9 million foreign currency loss recognized in the first quarter of 2015 as a result of the re-measurement of Revlon Venezuela's balance sheet during the first quarter of 2015. |
(d) | Income from continuing operations and net income for the fourth quarter of 2015 were impacted by: (i) a $20.7 million pension lump sum settlement charge related to the accounting for a one-time cash lump sum payment, which requires that a portion of pension losses within accumulated other comprehensive loss be realized in the period that related pension liabilities are settled (see Note 14, "Pension and Post-retirement Benefits"); (ii) an increase in net income driven by the net reduction of the Company's deferred tax valuation allowance on its net deferred tax assets for certain foreign jurisdictions, which has been reflected in the provision for income taxes for 2015 (See Note 16, "Income Taxes"); (iii) a $9.7 million non-cash goodwill impairment charge related to the Global Color Brands reporting unit (see Note 8, "Goodwill and Intangible Assets"); and (iv) $9.5 million in restructuring charges related to the 2015 Efficiency Program (see Note 3, "Restructuring Charges"). |
(e) | (Loss) income from discontinued operations includes the results of the Company's former China operations within the Consumer segment (See Note 4, "Discontinued Operations"). |
Condensed Consolidating Balance Sheets | |||||||||||||||||||
As of December 31, 2016 | |||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 20.0 | $ | 34.3 | $ | 132.5 | $ | — | $ | 186.8 | |||||||||
Trade receivables, less allowances for doubtful accounts | 104.6 | 104.8 | 214.5 | — | 423.9 | ||||||||||||||
Inventories | 96.8 | 150.5 | 177.3 | — | 424.6 | ||||||||||||||
Prepaid expenses and other | 155.3 | 15.1 | 47.2 | — | 217.6 | ||||||||||||||
Intercompany receivables | 790.1 | 635.7 | 127.8 | (1,553.6 | ) | — | |||||||||||||
Investment in subsidiaries | 1,610.1 | 3.0 | — | (1,613.1 | ) | — | |||||||||||||
Property, plant and equipment, net | 142.1 | 84.0 | 94.4 | — | 320.5 | ||||||||||||||
Deferred income taxes | 26.2 | (1.1 | ) | 111.0 | — | 136.1 | |||||||||||||
Goodwill | 188.7 | 251.7 | 249.1 | — | 689.5 | ||||||||||||||
Intangible assets, net | 49.0 | 149.1 | 438.5 | — | 636.6 | ||||||||||||||
Other assets | 50.8 | 29.4 | 22.9 | — | 103.1 | ||||||||||||||
Total assets | $ | 3,233.7 | $ | 1,456.5 | $ | 1,615.2 | $ | (3,166.7 | ) | $ | 3,138.7 | ||||||||
LIABILITIES AND STOCKHOLDER’S DEFICIENCY | |||||||||||||||||||
Short-term borrowings | $ | — | $ | — | $ | 10.8 | $ | — | $ | 10.8 | |||||||||
Current portion of long-term debt | 18.0 | — | 0.1 | — | 18.1 | ||||||||||||||
Accounts payable | 99.7 | 90.7 | 106.5 | — | 296.9 | ||||||||||||||
Accrued expenses and other | 183.0 | 63.5 | 136.2 | — | 382.7 | ||||||||||||||
Intercompany payables | 554.5 | 530.9 | 468.2 | (1,553.6 | ) | — | |||||||||||||
Long-term debt | 2,662.6 | — | 0.5 | — | 2,663.1 | ||||||||||||||
Other long-term liabilities | 222.7 | 20.3 | 30.9 | — | 273.9 | ||||||||||||||
Total liabilities | 3,740.5 | 705.4 | 753.2 | (1,553.6 | ) | 3,645.5 | |||||||||||||
Stockholder’s deficiency | (506.8 | ) | 751.1 | 862.0 | (1,613.1 | ) | (506.8 | ) | |||||||||||
Total liabilities and stockholder’s deficiency | $ | 3,233.7 | $ | 1,456.5 | $ | 1,615.2 | $ | (3,166.7 | ) | $ | 3,138.7 |
Condensed Consolidating Balance Sheets | |||||||||||||||||||
As of December 31, 2015 | |||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 141.5 | $ | 93.0 | $ | 92.4 | $ | — | 326.9 | ||||||||||
Trade receivables, less allowances for doubtful accounts | 79.7 | 44.5 | 120.7 | — | 244.9 | ||||||||||||||
Inventories | 88.1 | 34.5 | 61.2 | — | 183.8 | ||||||||||||||
Prepaid expenses and other | 136.9 | 3.3 | 30.5 | — | 170.7 | ||||||||||||||
Intercompany receivables | 692.1 | 366.5 | 95.2 | (1,153.8 | ) | — | |||||||||||||
Investment in subsidiaries | 591.0 | 16.3 | — | (607.3 | ) | — | |||||||||||||
Property, plant and equipment, net | 124.8 | 28.1 | 62.4 | — | 215.3 | ||||||||||||||
Deferred income taxes | 5.8 | — | 44.0 | — | 49.8 | ||||||||||||||
Goodwill | 182.4 | 30.0 | 257.3 | — | 469.7 | ||||||||||||||
Intangible assets, net | 56.6 | 156.7 | 104.7 | — | 318.0 | ||||||||||||||
Other assets | 49.4 | 9.6 | 25.1 | — | 84.1 | ||||||||||||||
Total assets | $ | 2,148.3 | $ | 782.5 | $ | 893.5 | $ | (1,761.1 | ) | $ | 2,063.2 | ||||||||
LIABILITIES AND STOCKHOLDER’S DEFICIENCY | |||||||||||||||||||
Short-term borrowings | $ | — | $ | — | $ | 11.3 | $ | — | 11.3 | ||||||||||
Current portion of long-term debt | 29.9 | — | 0.1 | — | 30.0 | ||||||||||||||
Accounts payable | 85.3 | 29.2 | 86.8 | — | 201.3 | ||||||||||||||
Accrued expenses and other | 175.1 | 18.9 | 78.4 | — | 272.4 | ||||||||||||||
Intercompany payables | 360.4 | 401.0 | 392.4 | (1,153.8 | ) | — | |||||||||||||
Long-term debt | 1,783.2 | — | 0.5 | — | 1,783.7 | ||||||||||||||
Other long-term liabilities | 206.0 | 0.8 | 49.3 | — | 256.1 | ||||||||||||||
Total liabilities | 2,639.9 | 449.9 | 618.8 | (1,153.8 | ) | 2,554.8 | |||||||||||||
Stockholder’s deficiency | (491.6 | ) | 332.6 | 274.7 | (607.3 | ) | (491.6 | ) | |||||||||||
Total liabilities and stockholder’s deficiency | $ | 2,148.3 | $ | 782.5 | $ | 893.5 | $ | (1,761.1 | ) | $ | 2,063.2 |
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | |||||||||||||||||||
Twelve Months Ended December 31, 2016 | |||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net Sales | $ | 826.6 | $ | 596.9 | $ | 919.4 | $ | (8.9 | ) | $ | 2,334.0 | ||||||||
Cost of sales | 261.4 | 273.5 | 391.1 | (8.9 | ) | 917.1 | |||||||||||||
Gross profit | 565.2 | 323.4 | 528.3 | — | 1,416.9 | ||||||||||||||
Selling, general and administrative expenses | 467.0 | 245.1 | 439.5 | — | 1,151.6 | ||||||||||||||
Acquisition and integration costs | 42.0 | 0.5 | 0.7 | — | 43.2 | ||||||||||||||
Restructuring charges and other, net | 29.8 | 1.8 | 2.4 | — | 34.0 | ||||||||||||||
Impairment Charge | — | — | 23.4 | — | 23.4 | ||||||||||||||
Operating income | 26.4 | 76.0 | 62.3 | — | 164.7 | ||||||||||||||
Other expenses (income): | — | ||||||||||||||||||
Intercompany interest, net | (7.9 | ) | 0.4 | 7.5 | — | — | |||||||||||||
Interest expense | 104.6 | — | 0.6 | — | 105.2 | ||||||||||||||
Amortization of debt issuance costs | 6.8 | — | — | — | 6.8 | ||||||||||||||
Loss on early extinguishment of debt | 16.9 | — | — | — | 16.9 | ||||||||||||||
Foreign currency (gains) losses, net | 4.2 | (1.5 | ) | 15.8 | — | 18.5 | |||||||||||||
Miscellaneous, net | (56.5 | ) | 17.3 | 38.6 | — | (0.6 | ) | ||||||||||||
Other expenses (income), net | 68.1 | 16.2 | 62.5 | — | 146.8 | ||||||||||||||
(Loss) income from continuing operations before income taxes | (41.7 | ) | 59.8 | (0.2 | ) | — | 17.9 | ||||||||||||
(Benefit from) provision for income taxes | (19.6 | ) | 40.3 | 8.0 | — | 28.7 | |||||||||||||
(Loss) income from continuing operations | (22.1 | ) | 19.5 | (8.2 | ) | — | (10.8 | ) | |||||||||||
Loss from discontinued operations, net of taxes | — | — | (4.9 | ) | — | (4.9 | ) | ||||||||||||
Equity in income (loss) of subsidiaries | 6.4 | (9.5 | ) | — | 3.1 | — | |||||||||||||
Net (loss) income | $ | (15.7 | ) | $ | 10.0 | $ | (13.1 | ) | $ | 3.1 | $ | (15.7 | ) | ||||||
Other comprehensive (loss) income | (6.4 | ) | (3.6 | ) | (1.8 | ) | 5.4 | (6.4 | ) | ||||||||||
Total comprehensive (loss) income | $ | (22.1 | ) | $ | 6.4 | $ | (14.9 | ) | $ | 8.5 | $ | (22.1 | ) |
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | |||||||||||||||||||
Twelve Months Ended December 31, 2015 | |||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net Sales | $ | 1,049.4 | $ | 340.4 | $ | 730.7 | $ | (206.2 | ) | $ | 1,914.3 | ||||||||
Cost of sales | 466.0 | 129.4 | 278.6 | (206.2 | ) | 667.8 | |||||||||||||
Gross profit | 583.4 | 211.0 | 452.1 | — | 1,246.5 | ||||||||||||||
Selling, general and administrative expenses | 495.0 | 131.2 | 367.3 | — | 993.5 | ||||||||||||||
Acquisition and integration costs | 7.1 | — | 0.9 | — | 8.0 | ||||||||||||||
Restructuring charges and other, net | 6.6 | 0.4 | 3.5 | — | 10.5 | ||||||||||||||
Impairment Charge | 9.7 | — | — | — | 9.7 | ||||||||||||||
Operating income | 65.0 | 79.4 | 80.4 | — | 224.8 | ||||||||||||||
Other expenses (income): | |||||||||||||||||||
Intercompany interest, net | (8.2 | ) | (0.1 | ) | 8.3 | — | — | ||||||||||||
Interest expense | 82.5 | — | 0.8 | — | 83.3 | ||||||||||||||
Amortization of debt issuance costs | 5.7 | — | — | — | 5.7 | ||||||||||||||
Foreign currency (gains) losses, net | 0.4 | (0.6 | ) | 15.9 | — | 15.7 | |||||||||||||
Miscellaneous, net | (54.2 | ) | (0.1 | ) | 54.7 | — | 0.4 | ||||||||||||
Other expenses (income), net | 26.2 | (0.8 | ) | 79.7 | — | 105.1 | |||||||||||||
Income (loss) from continuing operations before income taxes | 38.8 | 80.2 | 0.7 | — | 119.7 | ||||||||||||||
Provision for income taxes | 16.0 | 36.2 | 2.2 | — | 54.4 | ||||||||||||||
(Loss) income from continuing operations | 22.8 | 44.0 | (1.5 | ) | — | 65.3 | |||||||||||||
Income (loss) from discontinued operations, net of taxes | — | — | (3.2 | ) | — | (3.2 | ) | ||||||||||||
Equity in income of subsidiaries | 39.3 | 43.1 | — | (82.4 | ) | — | |||||||||||||
Net income (loss) | $ | 62.1 | $ | 87.1 | $ | (4.7 | ) | $ | (82.4 | ) | $ | 62.1 | |||||||
Other comprehensive (loss) income | (2.1 | ) | (1.5 | ) | (18.8 | ) | 20.3 | (2.1 | ) | ||||||||||
Total comprehensive income (loss) | $ | 60.0 | $ | 85.6 | $ | (23.5 | ) | $ | (62.1 | ) | $ | 60.0 |
Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income | |||||||||||||||||||
Twelve Months Ended December 31, 2014 | |||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
Net Sales | $ | 1,001.1 | $ | 356.8 | $ | 771.5 | $ | (188.4 | ) | $ | 1,941.0 | ||||||||
Cost of sales | 430.5 | 146.9 | 279.3 | (188.4 | ) | 668.3 | |||||||||||||
Gross profit | 570.6 | 209.9 | 492.2 | — | 1,272.7 | ||||||||||||||
Selling, general and administrative expenses | 466.6 | 133.3 | 399.8 | — | 999.7 | ||||||||||||||
Acquisition and integration costs | 6.4 | — | — | — | 6.4 | ||||||||||||||
Restructuring charges and other, net | 2.9 | 3.3 | 15.1 | — | 21.3 | ||||||||||||||
Operating income | 94.7 | 73.3 | 77.3 | — | 245.3 | ||||||||||||||
Other expenses (income): | |||||||||||||||||||
Intercompany interest, net | (8.0 | ) | (0.4 | ) | 8.4 | — | — | ||||||||||||
Interest expense | 83.6 | 0.1 | 0.7 | — | 84.4 | ||||||||||||||
Amortization of debt issuance costs | 5.5 | — | — | — | 5.5 | ||||||||||||||
Loss on extinguishment of debt, net | 2.0 | — | — | — | 2.0 | ||||||||||||||
Foreign currency (gains) losses, net | (3.1 | ) | (0.1 | ) | 28.2 | — | 25.0 | ||||||||||||
Miscellaneous, net | (48.0 | ) | (8.2 | ) | 57.4 | — | 1.2 | ||||||||||||
Other expenses (income), net | 32.0 | (8.6 | ) | 94.7 | — | 118.1 | |||||||||||||
Income (loss) from continuing operations before income taxes | 62.7 | 81.9 | (17.4 | ) | — | 127.2 | |||||||||||||
Provision for income taxes | 85.8 | (8.4 | ) | 3.8 | — | 81.2 | |||||||||||||
(Loss) income from continuing operations | (23.1 | ) | 90.3 | (21.2 | ) | — | 46.0 | ||||||||||||
Income from discontinued operations, net of taxes | 0.2 | — | 1.1 | — | 1.3 | ||||||||||||||
Equity in income of subsidiaries | 70.2 | 1.5 | — | (71.7 | ) | — | |||||||||||||
Net income (loss) | $ | 47.3 | $ | 91.8 | $ | (20.1 | ) | $ | (71.7 | ) | $ | 47.3 | |||||||
Other comprehensive (loss) income | (93.4 | ) | 9.3 | (15.8 | ) | 6.5 | (93.4 | ) | |||||||||||
Total comprehensive (loss) income | $ | (46.1 | ) | $ | 101.1 | $ | (35.9 | ) | $ | (65.2 | ) | $ | (46.1 | ) |
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||
Twelve Months Ended December 31, 2016 | |||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by (used in) operating activities | $ | 85.1 | $ | (56.8 | ) | $ | 85.9 | $ | — | $ | 114.2 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Capital expenditures | (38.6 | ) | (5.4 | ) | (15.3 | ) | — | (59.3 | ) | ||||||||||
Business acquisitions, net of cash acquired | (993.2 | ) | — | (35.5 | ) | — | (1,028.7 | ) | |||||||||||
Proceeds from the sale of certain assets | 0.1 | 0.4 | — | — | 0.5 | ||||||||||||||
Net cash used in investing activities | (1,031.7 | ) | (5.0 | ) | (50.8 | ) | — | (1,087.5 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Net (decrease) increase in short-term borrowings and overdraft | (11.1 | ) | 3.5 | 7.6 | — | — | |||||||||||||
Prepayments under the Acquisition Term Loan | (15.1 | ) | — | — | — | (15.1 | ) | ||||||||||||
Prepayments under the 2011 Term Loan | (11.5 | ) | — | — | — | (11.5 | ) | ||||||||||||
Repayment of Acquisition Term Loan | (658.6 | ) | — | — | — | (658.6 | ) | ||||||||||||
Repayment of 2011 Term Loan | (651.4 | ) | — | — | — | (651.4 | ) | ||||||||||||
Borrowings under the 2016 Term Loan Facility | 1,791.0 | — | — | — | 1,791.0 | ||||||||||||||
Repayments under the 2016 Term Loan Facility | (4.5 | ) | — | — | — | (4.5 | ) | ||||||||||||
Proceeds from the issuance of 6.25% Senior Notes | 450.0 | — | — | — | 450.0 | ||||||||||||||
Payment of financing costs | (61.6 | ) | — | — | — | (61.6 | ) | ||||||||||||
Other financing activities | (2.1 | ) | — | (0.4 | ) | — | (2.5 | ) | |||||||||||
Net cash provided by financing activities | 825.1 | 3.5 | 7.2 | — | 835.8 | ||||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (0.4 | ) | (2.2 | ) | — | (2.6 | ) | |||||||||||
Net (decrease) increase in cash and cash equivalents | (121.5 | ) | (58.7 | ) | 40.1 | — | (140.1 | ) | |||||||||||
Cash and cash equivalents at beginning of period | 141.5 | 93.0 | 92.4 | — | 326.9 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 20.0 | $ | 34.3 | $ | 132.5 | $ | — | $ | 186.8 |
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||
Twelve Months Ended December 31, 2015 | |||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by operating activities | $ | 89.1 | $ | 7.9 | $ | 58.3 | $ | — | $ | 155.3 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Capital expenditures | (29.5 | ) | (5.5 | ) | (13.3 | ) | — | (48.3 | ) | ||||||||||
Business acquisitions, net of cash and cash required | (8.1 | ) | — | (33.6 | ) | — | (41.7 | ) | |||||||||||
Proceeds from the sale of certain assets | 3.5 | 2.7 | — | — | 6.2 | ||||||||||||||
Net cash used in investing activities | (34.1 | ) | (2.8 | ) | (46.9 | ) | — | (83.8 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Net increase in short-term borrowings and overdraft | 17.3 | — | 5.7 | — | 23.0 | ||||||||||||||
Repayments under the Acquisition Term Loan | (19.3 | ) | — | — | — | (19.3 | ) | ||||||||||||
Prepayments under the 2011 Term Loan | (12.1 | ) | — | — | — | (12.1 | ) | ||||||||||||
Other financing activities | (3.6 | ) | — | (0.1 | ) | — | (3.7 | ) | |||||||||||
Net cash (used in) provided by financing activities | (17.7 | ) | — | 5.6 | — | (12.1 | ) | ||||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (0.2 | ) | (7.6 | ) | — | (7.8 | ) | |||||||||||
Net increase in cash and cash equivalents | 37.3 | 4.9 | 9.4 | — | 51.6 | ||||||||||||||
Cash and cash equivalents at beginning of period | 104.2 | 88.1 | 83.0 | — | 275.3 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 141.5 | $ | 93.0 | $ | 92.4 | $ | — | $ | 326.9 |
Condensed Consolidating Statement of Cash Flows | |||||||||||||||||||
Twelve Months Ended December 31, 2014 | |||||||||||||||||||
Products Corporation | Guarantor Subsidiaries | Non-Guarantor Subsidiaries | Eliminations | Consolidated | |||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||||
Net cash provided by operating activities | $ | 77.3 | $ | 78.0 | $ | 18.7 | $ | — | $ | 174.0 | |||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||||
Capital expenditures | (40.3 | ) | (2.4 | ) | (12.8 | ) | — | (55.5 | ) | ||||||||||
Proceeds from the sale of certain assets | — | — | 3.4 | — | 3.4 | ||||||||||||||
Net cash used in investing activities | (40.3 | ) | (2.4 | ) | (9.4 | ) | — | (52.1 | ) | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||||
Net (decrease) increase in short-term borrowings and overdraft | (4.2 | ) | (1.9 | ) | 1.4 | — | (4.7 | ) | |||||||||||
Repayment of Non-Contributed Loan | (58.4 | ) | — | — | — | (58.4 | ) | ||||||||||||
Repayments under the Acquisition Term Loan | (7.0 | ) | — | — | — | (7.0 | ) | ||||||||||||
Payment of financing costs | (1.8 | ) | — | — | — | (1.8 | ) | ||||||||||||
Other financing activities | (2.7 | ) | — | (0.5 | ) | — | (3.2 | ) | |||||||||||
Net cash (used in) provided by financing activities | (74.1 | ) | (1.9 | ) | 0.9 | — | (75.1 | ) | |||||||||||
Effect of exchange rate changes on cash and cash equivalents | — | (0.1 | ) | (15.5 | ) | — | (15.6 | ) | |||||||||||
Net (decrease) increase in cash and cash equivalents | (37.1 | ) | 73.6 | (5.3 | ) | — | 31.2 | ||||||||||||
Cash and cash equivalents at beginning of period | 141.3 | 14.5 | 88.3 | — | 244.1 | ||||||||||||||
Cash and cash equivalents at end of period | $ | 104.2 | $ | 88.1 | $ | 83.0 | $ | — | $ | 275.3 |
Balance at Beginning of Year | Charged to Cost and Expenses | Other Deductions | Balance at End of Year | ||||||||||||
Allowance for Doubtful Accounts: | |||||||||||||||
2016 | $ | 10.5 | $ | 2.2 | $ | (1.6 | ) | $ | 11.1 | ||||||
2015 | 9.3 | 2.8 | (1.6 | ) | 10.5 | ||||||||||
2014 | 4.2 | 8.4 | (3.3 | ) | 9.3 | ||||||||||
Allowance for Volume and Early Payment Discounts: | |||||||||||||||
2016 | $ | 22.6 | $ | 80.1 | $ | (79.7 | ) | $ | 23.0 | ||||||
2015 | 23.4 | 51.6 | (52.4 | ) | 22.6 | ||||||||||
2014 | 12.1 | 84.7 | (73.4 | ) | 23.4 | ||||||||||
Allowance for Sales Returns: | |||||||||||||||
2016 | $ | 39.3 | $ | 64.5 | $ | (56.6 | ) | $ | 47.2 | ||||||
2015 | 45.4 | 48.5 | (54.6 | ) | 39.3 | ||||||||||
2014 | 53.1 | 64.3 | (72.0 | ) | 45.4 |
Revlon Consumer Products Corporation | ||||
(Registrant) | ||||
By: /s/ Fabian T. Garcia | By: /s/ Juan R. Figuereo | By: /s/ Siobhan Anderson | ||
Fabian T. Garcia | Juan R. Figuereo | Siobhan Anderson | ||
President, | Chief Financial Officer | Senior Vice President, | ||
Chief Executive Officer and | Chief Accounting Officer, | |||
Director | Corporate Controller, Treasurer | |||
and Investor Relations |
Signature | Title | |
* | Chairman of the Board and Director | |
(Ronald O. Perelman) | ||
* | Director | |
(Alan S. Bernikow) | ||
* | Director | |
(Viet D. Dinh) | ||
* | Director | |
(Barry F. Schwartz) |
By: /s/ Mitra Hormozi |
Mitra Hormozi |
Attorney-in-fact |
Almay, Inc. Art & Science, Ltd. Bari Cosmetics, Ltd. Beautyge Brands USA, Inc. Beautyge U.S.A., Inc. Charles Revson Inc. Creative Nail Design, Inc. Cutex, Inc. DF Enterprises, Inc. Elizabeth Arden, Inc. Elizabeth Arden (Financing), Inc. | Elizabeth Arden International Holding, Inc. Elizabeth Arden Investments, LLC Elizabeth Arden NM, LLC Elizabeth Arden Travel Retail, Inc. Elizabeth Arden USC, LLC FD Management, Inc. North America Revsale Inc. OPP Products, Inc. PPI Two Corporation RDEN Management, Inc. Realistic Roux Professional Products Inc. | Revlon Development Corp. Revlon Government Sales, Inc. Revlon International Corporation Revlon Professional Holding Company LLC RIROS Corporation RIROS Group Inc. RML, LLC Roux Laboratories, Inc. Roux Properties Jacksonville, LLC SinfulColors Inc. |
American Crew Dominicana, S.r.l. Armour Farmaceutica de Colombia, S.A. Baninvest Beauty Limited Beautyge Andina S.A Beautyge Beauty Group, S.L. Beautyge Brands France Holding SAS Beautyge Denmark A/S Beautyge Fragrances Holdings Ltd Beautyge France SAS Beautyge Germany GmbH Beautyge Italy S.p.A. Beautyge Logistics Services, S.L. Beautyge Mexico, S.A. de C.V. Beautyge Netherlands B.V. Beautyge Participations, S.L. Beautyge Portugal - Produtos Cosmeticos e Profissionais Lda. Beautyge Professional Limited Beautyge RUS Joint Stock Beautyge, S.L. Beautyge Sweden AB Beautyge U.K., Limited CBBeauty Ltd Comercializadora Brendola, S.R.L. Elizabeth Arden (Australia) PTY Limited Elizabeth Arden Cosmeticos DO Brazil, LTDA Elizabeth Arden (Canada) Limited Elizabeth Arden (Shanghai) Cosmetics & Fragrances Trading, Ltd. | Elizabeth Arden (New Zealand) Limited Elizabeth Arden (Switzerland) Holding S.a.r.l. Elizabeth Arden (South Africa) (PTY) Ltd. Elizabeth Arden (Canada) Limited Elizabeth Arden (Netherlands) Holding B.V. Elizabeth Arden (Shanghai) Cosmetics & Fragrances Trading Ltd. Elizabeth Arden (Export), Inc. Elizabeth Arden UK Ltd Elizabeth Arden (Italy) S.R.L Elizabeth Arden (Singapore) Pte. Ltd. Elizabeth Arden España S.L. Elizabeth Arden International S.a.r.l. Elizabeth Arden (Denmark) ApS Elizabeth Arden (Norway) AS Elizabeth Arden (Sweden) AB Elizabeth Arden Trading B.V. Elizabeth Arden Sea Pte. Ltd. Elizabeth Arden Middle East FZCO Elizabeth Arden Cosmeticos do Brazil Ltda Elizabeth Arden (France) S.A. Elizabeth Arden GmbH Elizabeth Arden Korea Yuhan Hoesa Elizabeth Arden Sea (HK) Ltd. Européenne de Produits de Beauté, S.A.S. New Revlon Argentina S.A. Productos Cosmeticos de Revlon, S.A. Professional Beauty Services S.A. Promethean Insurance Limited | Revlon Australia Pty Limited Revlon Beauty Products, S.L. Revlon B.V. Revlon Canada Inc. Revlon China Holdings Limited Revlon (Hong Kong) Limited Revlon (Israel) Limited Revlon K.K. Revlon Ltda. Revlon Manufacturing Ltd. Revlon Mauritius Ltd. Revlon New Zealand Limited Revlon Offshore Limited Revlon Overseas Corporation, C.A. Revlon Pension Trustee Company (U.K.) Limited Revlon (Puerto Rico) Inc. Revlon, S.A. de C.V. Revlon (Shanghai) Limited Revlon South Africa (Proprietary) Limited Revlon (Suisse) S.A. Revlon Trading (Shanghai) Co., Ltd. RML Holdings L.P. SAS and Company Limited SAS Licences Limited Shanghai Revstar Cosmetics Marketing Services Limited YAE Artistic Packings Industry Ltd. YAE Press 2000 (1987) Ltd. |
RONALD O. PERELMAN |
/s/ Alan S. Bernikow |
ALAN S. BERNIKOW |
VIET D. DINH |
/s/ Barry F. Schwartz |
BARRY F. SCHWARTZ |
1. | I have reviewed this annual report on Form 10-K (the "Report") of Revlon Consumer Products Corporation (the "Registrant"); |
2. | Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report; |
4. | The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
5. | The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): |
1. | I have reviewed this annual report on Form 10-K (the "Report") of Revlon Consumer Products Corporation (the "Registrant"); |
2. | Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report; |
4. | The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
5. | The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): |
Document and Entity Information - USD ($) |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Jun. 30, 2016 |
|
Document and Entity Information [Abstract] | ||
Document Type | 10-K | |
Amendment Flag | false | |
Document Period End Date | Dec. 31, 2016 | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | FY | |
Trading Symbol | RCPC | |
Entity Registrant Name | REVLON CONSUMER PRODUCTS CORP | |
Entity Central Index Key | 0000890547 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Common Stock, Shares Outstanding (shares) | 5,260 | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Entity Public Float | $ 0 |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts on trade receivables | $ 11.1 | $ 10.5 |
Accumulated depreciation on property, plant and equipment | 304.7 | 271.7 |
Accumulated amortization on intangible assets | $ 84.8 | $ 61.1 |
Preferred stock, par value (usd per share) | $ 1.00 | $ 1.00 |
Preferred stock, authorized (shares) | 1,000 | 1,000 |
Preferred stock, issued (shares) | 546 | 546 |
Common stock, par value (usd per share) | $ 1.00 | $ 1.00 |
Common stock, authorized (shares) | 10,000 | 10,000 |
Common stock, issued (shares) | 5,260 | 5,260 |
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Millions |
12 Months Ended | |||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||||||||||||||
Income Statement [Abstract] | ||||||||||||||||||||||
Net sales | $ 2,334.0 | $ 1,914.3 | $ 1,941.0 | |||||||||||||||||||
Cost of sales | 917.1 | 667.8 | 668.3 | |||||||||||||||||||
Gross profit | 1,416.9 | 1,246.5 | 1,272.7 | |||||||||||||||||||
Selling, general and administrative expenses | 1,151.6 | 993.5 | 999.7 | |||||||||||||||||||
Acquisition and integration costs | 43.2 | 8.0 | 6.4 | |||||||||||||||||||
Restructuring charges and other, net | 34.0 | 10.5 | 21.3 | |||||||||||||||||||
Impairment charge | 23.4 | 9.7 | [1] | 0.0 | [1] | |||||||||||||||||
Operating income | 164.7 | 224.8 | 245.3 | |||||||||||||||||||
Other expenses, net: | ||||||||||||||||||||||
Interest expense | 105.2 | 83.3 | 84.4 | |||||||||||||||||||
Amortization of debt issuance costs | 6.8 | 5.7 | [1] | 5.5 | [1] | |||||||||||||||||
Loss on early extinguishment of debt, net | 16.9 | 0.0 | [1] | 2.0 | [1] | |||||||||||||||||
Foreign currency losses, net | 18.5 | 15.7 | 25.0 | |||||||||||||||||||
Miscellaneous, net | (0.6) | 0.4 | 1.2 | |||||||||||||||||||
Other expenses, net | 146.8 | 105.1 | 118.1 | |||||||||||||||||||
Income from continuing operations before income taxes | 17.9 | 119.7 | 127.2 | |||||||||||||||||||
Provision for income taxes | 28.7 | 54.4 | 81.2 | |||||||||||||||||||
(Loss) income from continuing operations, net of taxes | (10.8) | 65.3 | 46.0 | |||||||||||||||||||
(Loss) income from discontinued operations, net of taxes | (4.9) | (3.2) | 1.3 | |||||||||||||||||||
Net (loss) income | (15.7) | 62.1 | [1] | 47.3 | [1] | |||||||||||||||||
Other comprehensive income (loss): | ||||||||||||||||||||||
Foreign currency translation adjustments, net of tax | [2] | (0.5) | (18.1) | (24.6) | ||||||||||||||||||
Amortization of pension related costs, net of tax | [3],[4] | 7.6 | 7.2 | 4.5 | ||||||||||||||||||
Pension re-measurement, net of tax | [5] | (14.3) | (6.9) | (69.6) | ||||||||||||||||||
Pension settlement, net of tax | [6] | 0.0 | 17.3 | 0.0 | ||||||||||||||||||
Revaluation of derivative financial instruments, net of reclassifications into earnings | [7] | 0.8 | (1.6) | (3.7) | ||||||||||||||||||
Other comprehensive loss, net | [8] | (6.4) | (2.1) | (93.4) | ||||||||||||||||||
Total comprehensive (loss) income | $ (22.1) | $ 60.0 | $ (46.1) | |||||||||||||||||||
|
CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE (LOSS) INCOME (Parenthetical) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Statement [Abstract] | |||
Foreign currency translation adjustments, tax expense (benefit) | $ 1.1 | $ (5.1) | $ (2.1) |
Amortization of pension related costs, tax expense (benefit) | 1.3 | 0.1 | |
Pension re-measurement, tax expense (benefit) | (4.1) | (3.3) | (42.0) |
Pension settlement, tax expense (benefit) | 3.7 | ||
Revaluation of derivative financial instruments, net of reclassifications into earnings, tax expense (benefit) | $ 0.5 | $ (1.0) | $ (2.3) |
CONSOLIDATED STATEMENT OF STOCKHOLDER'S DEFICIENCY - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Beginning balance | $ (491.6) | [1] | $ (557.0) | $ (491.6) | [1] | $ (557.0) | $ (516.5) | ||||||||||||
Stock-based compensation amortization | 6.4 | 5.1 | 5.5 | ||||||||||||||||
Excess tax benefits from stock-based compensation | 0.5 | 0.3 | 0.1 | ||||||||||||||||
Net (loss) income | $ (34.8) | 13.0 | $ 26.3 | 0.6 | (15.7) | 62.1 | [2] | 47.3 | [2] | ||||||||||
Other comprehensive loss, net | [3] | (6.4) | (2.1) | (93.4) | |||||||||||||||
Ending balance | (506.8) | (491.6) | [1] | (506.8) | (491.6) | [1] | (557.0) | ||||||||||||
Common Stock [Member] | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Beginning balance | 54.6 | 54.6 | 54.6 | 54.6 | 54.6 | ||||||||||||||
Ending balance | 54.6 | 54.6 | 54.6 | 54.6 | 54.6 | ||||||||||||||
Additional Paid-In-Capital [Member] | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Beginning balance | 957.5 | 952.1 | 957.5 | 952.1 | 946.5 | ||||||||||||||
Stock-based compensation amortization | 6.4 | 5.1 | 5.5 | ||||||||||||||||
Excess tax benefits from stock-based compensation | 0.5 | 0.3 | 0.1 | ||||||||||||||||
Ending balance | 964.4 | 957.5 | 964.4 | 957.5 | 952.1 | ||||||||||||||
Accumulated Deficit [Member] | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Beginning balance | (1,258.4) | (1,320.5) | (1,258.4) | (1,320.5) | (1,367.8) | ||||||||||||||
Net (loss) income | (15.7) | 62.1 | 47.3 | ||||||||||||||||
Ending balance | (1,274.1) | (1,258.4) | (1,274.1) | (1,258.4) | (1,320.5) | ||||||||||||||
Accumulated Other Comprehensive Loss [Member] | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||
Beginning balance | $ (245.3) | $ (243.2) | (245.3) | (243.2) | (149.8) | ||||||||||||||
Other comprehensive loss, net | [3] | (6.4) | (2.1) | (93.4) | |||||||||||||||
Ending balance | $ (251.7) | $ (245.3) | $ (251.7) | $ (245.3) | $ (243.2) | ||||||||||||||
|
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||||||||||
Net (loss) income | $ (15.7) | $ 62.1 | [1] | $ 47.3 | [1] | |||||
Adjustments to reconcile net (loss) income to net cash provided by operating activities: | ||||||||||
Depreciation and amortization | 123.2 | 103.2 | [1] | 102.6 | [1] | |||||
Foreign currency losses from re-measurement | 20.6 | 19.5 | [1] | 25.5 | [1] | |||||
Amortization of debt discount | 1.4 | 1.4 | [1] | 1.4 | [1] | |||||
Stock-based compensation amortization | 6.4 | 5.1 | [1] | 5.5 | [1] | |||||
Impairment charge | 23.4 | 9.7 | [1] | 0.0 | [1] | |||||
(Benefit from) provision for deferred income taxes | (6.9) | 31.5 | [1] | 67.9 | [1] | |||||
Loss on early extinguishment of debt, net | 16.9 | 0.0 | [1] | 2.0 | [1] | |||||
Amortization of debt issuance costs | 6.8 | 5.7 | [1] | 5.5 | [1] | |||||
Loss (gain) on sale of certain assets | 0.4 | (6.4) | [1] | (2.1) | [1] | |||||
Pension and other post-retirement (income) costs | (0.6) | 19.0 | [1] | (5.3) | [1] | |||||
Change in assets and liabilities, net of acquisitions: | ||||||||||
Increase in trade receivables | (59.5) | (18.5) | [1] | (5.5) | [1] | |||||
Decrease (increase) in inventories | 74.5 | (30.6) | [1] | 9.2 | [1] | |||||
(Increase) decrease in prepaid expenses and other current assets | (19.5) | (25.4) | [1] | (2.7) | [1] | |||||
(Decrease) increase in accounts payable | (12.6) | 34.9 | [1] | 0.2 | [1] | |||||
Increase (decrease) in accrued expenses and other current liabilities | 11.5 | 10.2 | [1] | (21.6) | [1] | |||||
Pension and other post-retirement plan contributions | (8.3) | (18.1) | [1] | (19.0) | [1] | |||||
Purchases of permanent displays | (52.1) | (47.4) | [1] | (45.3) | [1] | |||||
Other, net | 4.3 | (0.6) | [1] | 8.4 | [1] | |||||
Net cash provided by operating activities | 114.2 | 155.3 | [1] | 174.0 | [1] | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | ||||||||||
Capital expenditures | (59.3) | (48.3) | [1] | (55.5) | [1] | |||||
Business acquisitions, net of cash acquired | (1,028.7) | (41.7) | [1] | 0.0 | [1] | |||||
Proceeds from the sale of certain assets | 0.5 | 6.2 | [1] | 3.4 | [1] | |||||
Net cash used in investing activities | (1,087.5) | (83.8) | [1] | (52.1) | [1] | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Net increase (decrease) in short-term borrowings and overdraft | 0.0 | 23.0 | [1] | (4.7) | [1] | |||||
Payment of financing costs | (61.6) | 0.0 | [1] | (1.8) | [1] | |||||
Other financing activities | (2.5) | (3.7) | [1] | (3.2) | [1] | |||||
Net cash provided by (used in) financing activities | 835.8 | (12.1) | [1] | (75.1) | [1] | |||||
Effect of exchange rate changes on cash and cash equivalents | (2.6) | (7.8) | [1] | (15.6) | [1] | |||||
Net (decrease) increase in cash and cash equivalents | (140.1) | 51.6 | [1] | 31.2 | [1] | |||||
Cash and cash equivalents at beginning of period | [1] | 326.9 | [2] | 275.3 | 244.1 | |||||
Cash and cash equivalents at end of period | 186.8 | 326.9 | [1],[2] | 275.3 | [1] | |||||
Cash paid during the period for: | ||||||||||
Interest | 91.7 | 79.9 | [1] | 85.6 | [1] | |||||
Income taxes, net of refunds | 21.9 | 25.2 | [1] | 20.9 | [1] | |||||
Acquisition Term Loan [Member] | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Repayments of debt, scheduled | (15.1) | (19.3) | [1] | (7.0) | [1] | |||||
Repayments of debt, payoff | (658.6) | 0.0 | [1] | 0.0 | [1] | |||||
2011 Term Loan [Member] | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Repayments of debt, scheduled | (11.5) | (12.1) | [1] | 0.0 | [1] | |||||
Repayments of debt, payoff | (651.4) | 0.0 | [1] | 0.0 | [1] | |||||
Non-Contributed Term Loan [Member] | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Repayments of debt, scheduled | 0.0 | 0.0 | [1] | (58.4) | [1] | |||||
2016 Term Loan [Member] | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Repayments of debt, scheduled | (4.5) | 0.0 | [1] | 0.0 | [1] | |||||
Proceeds from issuance of debt | 1,791.0 | 0.0 | [1] | 0.0 | [1] | |||||
6.25% Senior Notes [Member] | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | ||||||||||
Proceeds from issuance of debt | $ 450.0 | $ 0.0 | [1] | $ 0.0 | ||||||
|
BUSINESS COMBINATIONS |
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Business Combinations [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
BUSINESS COMBINATIONS | BUSINESS COMBINATIONS The Elizabeth Arden Acquisition On the September 7, 2016 Elizabeth Arden Acquisition Date, the Company completed the Elizabeth Arden Acquisition for a total cash purchase price of $1,034.3 million, pursuant to an agreement and plan of merger (the "Merger Agreement") by and among Revlon, Products Corporation, RR Transaction Corp. ("Acquisition Sub," then a wholly-owned subsidiary of Products Corporation), and Elizabeth Arden. On the Elizabeth Arden Acquisition Date, Elizabeth Arden merged (the “Merger”) with and into Acquisition Sub, with Elizabeth Arden surviving the Merger as a wholly-owned subsidiary of Products Corporation. Elizabeth Arden is a global prestige beauty products company with an iconic portfolio of brands that are highly complementary to the Company's existing brand portfolio and are sold worldwide. In North America, Elizabeth Arden’s principal customers include prestige retailers, specialty stores, the mass retail channel, distributors, department stores and other retailers, as well as direct sales to consumers via its Elizabeth Arden Red Door branded retail stores and ElizabethArden.com e-commerce business. Elizabeth Arden products are also sold through the Elizabeth Arden Red Door Spa beauty salons and spas. Internationally, Elizabeth Arden’s portfolio of owned and licensed brands is sold to perfumeries, boutiques, department stores, travel retailers and distributors. Products Corporation financed the Elizabeth Arden Acquisition with the proceeds from (i) a 7-year $1,800.0 million senior secured term loan facility (the “2016 Term Loan Facility” and such agreement being the “2016 Term Loan Agreement”); (ii) $35.0 million of borrowings under a 5-year $400.0 million senior secured asset-based revolving credit facility (the “2016 Revolving Credit Facility” and such agreement being the “2016 Revolving Credit Agreement” and such facility, together with the 2016 Term Loan Facility, the “2016 Senior Credit Facilities” and such agreements being the "2016 Credit Agreements"); (iii) $450.0 million aggregate principal amount of Products Corporation’s 6.25% Senior Notes due 2024 (the “6.25% Senior Notes”); and (iv) approximately $126.7 million of cash on hand. Refer to Note 11, "Long-Term Debt" for further details related to financing the Elizabeth Arden Acquisition and related debt restructuring transactions. The results of operations of Elizabeth Arden are included in the Company’s Consolidated Financial Statements commencing on the Elizabeth Arden Acquisition Date. For the net sales and segment profit related to Elizabeth Arden operations for the period from the Elizabeth Arden Acquisition Date through December 31, 2016, refer to the Elizabeth Arden segment disclosure in Note 19, "Segment Data and Related Information." For the year ended December 31, 2016 the Company incurred $40.7 million of acquisition and integration costs in the Consolidated Statement of Operations and Comprehensive (Loss) Income, related to the Elizabeth Arden Acquisition, which consist of $19.3 million of acquisition costs and $21.4 million of integration costs. The acquisition costs primarily include legal and consulting fees to complete the Elizabeth Arden Acquisition. The integration costs consist of non-restructuring costs related to integrating Elizabeth Arden's operations into the Company's business. Purchase Price of the Elizabeth Arden Acquisition The components of the purchase price for the Elizabeth Arden Acquisition are as follows:
Purchase Price Allocation The Company accounted for the Elizabeth Arden Acquisition as a business combination during the third quarter of 2016 and, accordingly, the total consideration of $1,034.3 million has been preliminary recorded based on the respective estimated fair values of the net assets acquired on the Elizabeth Arden Acquisition Date with resulting goodwill, as follows:
(a) As previously reported in Revlon's third quarter 2016 Form 10-Q. (b) The Measurement Period Adjustments to inventories during the three months ended December 31, 2016 relate to: (i) further evaluations of the inventory components at the Elizabeth Arden Acquisition Date, which resulted in a $16.6 million decrease in value of Elizabeth Arden's inventory on the Elizabeth Arden Acquisition Date; and (ii) a $2.6 million decrease in the step-up for the estimated fair value of Elizabeth Arden’s inventory, which was determined based upon the estimated selling price of the inventories less the remaining manufacturing and selling costs and normal profit margin on those manufacturing and selling efforts, based upon the adjusted acquisition date value. Following the Elizabeth Arden Acquisition, the step-up in fair value will increase cost of sales over approximately seven months, as the acquired inventory is sold. For 2016, the Company recognized a $20.7 million charge within cost of sales related to this step-up. (c) Deferred tax assets acquired in the Elizabeth Arden Acquisition primarily relate to approximately $107.3 million of tax loss carryforwards which the Company preliminarily estimates it will be able to realize in future periods, of which $0.5 million are foreign and $106.8 million are domestic (federal). (d) The Measurement Period Adjustments to intangible assets during the three months ended December 31, 2016 relate to a change in the fair value of acquired customer relationships and license agreement intangible assets, which increased the fair value of acquired customer relationship intangible assets by $6.0 million and decreased the fair value of acquired license agreement intangible assets by $2.0 million due to the decrease in the estimated fair value of Elizabeth Arden's inventory, as discussed above. (e) The Measurement Period Adjustments to other assets during the three months ended December 31, 2016 relate to a change in assumptions used to calculate the fair value of Elizabeth Arden’s minority investment in Elizabeth Arden Salon-Holdings, Inc., an unrelated party whose subsidiaries operate the Elizabeth Arden Red Door Spas and the Mario Tricoci Hair Salons, which resulted in a decrease in the estimated fair value of the from $20.3 million to $16.2 million. The fair values of the net assets acquired in the Elizabeth Arden Acquisition were based on management’s preliminary estimate of the respective fair values of Elizabeth Arden’s net assets. The estimated fair values of net assets and resulting goodwill are subject to the Company finalizing its analysis of the fair value of Elizabeth Arden’s assets and liabilities as of the Elizabeth Arden Acquisition Date and may be adjusted upon completion of such analysis. In addition, information unknown at the time of the Elizabeth Arden Acquisition could result in adjustments to the respective fair values and resulting goodwill within the year following the Elizabeth Arden Acquisition Date. In determining the fair values of net assets acquired in the Elizabeth Arden Acquisition and resulting goodwill, the Company considered, among other factors, the analyses of Elizabeth Arden's historical financial performance and an estimate of the future performance of the acquired business, as well as the intended use of the acquired assets. The estimated fair value of the accounts receivable acquired in the Elizabeth Arden Acquisition was determined to be $132.6 million. The gross amount due was $165.0 million and the Company estimates that approximately $32.4 million was uncollectible. The estimated fair value of inventory acquired in the Elizabeth Arden Acquisition was determined using the income approach, specifically, the net realizable value ("NRV") approach, which calculates the estimated selling price of such inventory in the ordinary course of business, less the reasonable costs of completion, disposal and holding. The estimated fair value of acquired property and equipment was determined using the cost approach. The intangible assets acquired in the Elizabeth Arden Acquisition based on the estimate of the fair values of the identifiable intangible assets are as follows:
The estimate of the fair values of acquired indefinite-lived and finite-lived trade names and technology IP was determined using a risk-adjusted discounted cash flow approach, specifically the relief-from-royalty method. The relief-from-royalty method requires identifying the hypothetical cash flows generated by an assumed royalty rate that a third party would pay to license the trade names and IP, and discounting them back to the Elizabeth Arden Acquisition Date. The royalty rate used in such valuation was based on a consideration of market rates for similar categories of assets. The indefinite-lived trade names includes the Elizabeth Arden brand trade name. The finite-lived trade names includes, among others, owned heritage fragrance trade names such as Curve, Halston and Giorgio Beverly Hills and the Prevage skin care brand. The estimate of the fair value of the customer and distributor relationships and distribution rights acquired in the Elizabeth Arden Acquisition were determined using a risk-adjusted discounted cash flow model, specifically, the excess earnings method which considers the use of other assets in the generation of the projected cash flows of a specific asset to isolate the economic benefit generated by the customer and distribution relationships and distribution rights. The contribution of other assets, such as fixed assets, working capital, workforce and other intangible assets, to overall cash flows was estimated through contributory asset capital charges. Therefore, the value of the acquired customer relationship is the present value of the attributed post-tax cash flows, net of the return on fair value attributed to tangible and other intangible assets. There are significant judgments inherent in a discounted cash flow approach, including, selecting appropriate discount rates, hypothetical royalty rates and contributory asset capital charges; estimating the amount and timing of estimated future cash flows; and identifying appropriate terminal growth rate assumptions. The discount rates used in the discounted cash flow analyses are intended to reflect the risk inherent in the projected future cash flows generated by the respective intangible assets. The Company recorded a $60.2 million deferred tax liability related to the $336.8 million of acquired intangible assets outlined in the above table. This deferred tax liability represents the tax effect of the difference between the $336.8 million estimated assigned fair value of the intangible assets and the $148.6 million tax basis of such assets. The goodwill and intangibles acquired in the Elizabeth Arden Acquisition are not expected to be deductible for income tax purposes. Goodwill of $221.7 million represents the excess of the purchase price paid by Products Corporation for the Elizabeth Arden Acquisition over the fair value of the identifiable net assets acquired by Products Corporation in the Elizabeth Arden Acquisition. Factors contributing to the purchase price resulting in the recognition of goodwill include estimated annualized synergies and cost reductions, expanded category mix, channel diversification and a broader geographic footprint. Unaudited Pro Forma Results The following table presents the Company's pro forma consolidated net sales and income from continuing operations, before income taxes for the years ended December 31, 2016 and 2015, respectively. The unaudited pro forma results include the historical consolidated statements of operations of the Company and Elizabeth Arden, giving effect to the Elizabeth Arden Acquisition and related financing transactions as if they had occurred at the beginning of the earliest period presented. As stated below, the Company also acquired certain international Cutex businesses, which primarily operate in Australia and the U.K., and related assets ("Cutex International"); however the Company has not included the Cutex International results prior to its acquisition date in these pro forma results as the impact would not have been material to the Company's financial results.
The pro forma results, prepared in accordance with U.S. GAAP, include the following pro forma adjustments related to the Elizabeth Arden Acquisition: (i) as a result of a $38.0 million increase in the fair value of acquired inventory at the Elizabeth Arden Acquisition Date, the Company recognized a $20.7 million increase in the cost of sales during the year ended December 31, 2016 in the consolidated financial statements. The pro forma adjustments include an adjustment to reverse the $20.7 million recognized in the year ended December 31, 2016 within cost of sales because it will not have a recurring impact; (ii) a pro forma increase in depreciation and amortization expense as a result of the preliminary fair value adjustments to property and equipment of $0.5 million and acquired finite-lived intangible assets of $0.8 million recorded in connection with the Elizabeth Arden Acquisition for the year ended December 31, 2016; (iii) a pro forma decrease in depreciation and amortization expense as a result of the preliminary fair value adjustments to property and equipment of $6.1 million and acquired finite-lived intangible assets of $0.4 million recorded in connection with the Elizabeth Arden Acquisition for the year ended December 31, 2015; (iv) the elimination of $68.0 million of acquisition and integration costs recognized by the Company and Elizabeth Arden during the year ended December 31, 2016; and (v) a pro forma increase in interest expense and amortization of debt issuance costs, related to financing the Elizabeth Arden Acquisition and related debt restructuring transactions as summarized in the following table. Refer to Note 11, "Long-Term Debt," for further details on financing the Elizabeth Arden Acquisition and related debt refinancing transactions.
(a) 2016 pro forma adjustments are for the period January 1, 2016 through the Elizabeth Arden Acquisition Date of September 7, 2016. The unaudited pro forma results do not include: (1) any incremental revenue generation, synergies or cost reductions that may be achieved as a result of the Elizabeth Arden Acquisition; or (2) the impact of non-operating or non-recurring items directly related to the Elizabeth Arden Acquisition. In addition, the unaudited pro forma results do not purport to project the future consolidated operating results of the combined company. The Cutex International Acquisition On May 31, 2016 (the "Cutex International Acquisition Date"), the Company completed the acquisition of Cutex International from Coty Inc. (the "Cutex International Acquisition") for total cash consideration of $29.1 million. Following the Company's October 2015 acquisition of the Cutex business and related assets in the U.S. from Cutex Brands, LLC (the “Cutex U.S. Acquisition” and together with the Cutex International Acquisition, the "Cutex Acquisitions"), combined with other Cutex businesses that the Company acquired in 1998, the Cutex International Acquisition completed the Company's global consolidation of the Cutex brand, enhancing and complementing the Company's existing portfolio of nail care products. Cutex International's results of operations are included in the Company’s Consolidated Financial Statements commencing on the Cutex International Acquisition Date. Pro forma results of operations have not been presented, as the impact of the Cutex International Acquisition on the Company’s consolidated financial results is not material. The Company accounted for the Cutex International Acquisition as a business combination in the second quarter of 2016. The table below summarizes the allocation of the total consideration of $29.1 million paid on the Cutex International Acquisition Date, as well as adjustments that have been made to the preliminary estimate of fair values during the third quarter of 2016:
(a) As previously reported in Revlon's second quarter 2016 Form 10-Q. (b) Purchased intangible assets include customer networks fair valued at $11.9 million and intellectual property fair valued at $0.8 million, which are amortized over useful lives of 15 and 10 years, respectively, and indefinite lived trade names fair valued at $4.5 million. As part of the Cutex International Acquisition, the Company reacquired the Cutex trade name from Coty, under an assignment of a license agreement which had previously provided Coty with an exclusive right to manufacture, market and sell Cutex branded products for an initial term and perpetual automatic 20-year renewals. Based on the terms and conditions of the existing license agreement and other factors, the Cutex trade name was assigned an indefinite-life and, therefore, will not be amortized. In determining the estimated fair values of net assets acquired and resulting goodwill related to the Cutex International Acquisition, the Company considered, among other factors, the analysis of Cutex International's historical financial performance and an estimate of the future performance of the acquired business, as well as the intended use of the acquired assets. Factors contributing to the purchase price resulting in the recognition of goodwill include the anticipated benefits that the Company expects to achieve through the expansion of its nail product portfolio. Neither the intangible assets nor goodwill acquired in the Cutex International Acquisition are deductible for income tax purposes. Acquisitions Completed in 2015 The Company completed the following acquisitions during 2015:
The results of operations of these acquisitions are included in the Company's statement of operations commencing on each respective acquisition date. The results of operations of the CBB business are included within the Other segment. The American Crew and Revlon Professional distribution rights acquisition is included within the Company's Professional segment and the Cutex U.S. Acquisition is included within the Company's Consumer segment. The results of operations of these acquisitions did not have a material impact on the Company's results of operations for 2016 and 2015. |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revlon Consumer Products Corporation ("Products Corporation" and together with its subsidiaries, the "Company") is the direct wholly-owned operating subsidiary of Revlon, Inc. ("Revlon"), which is an indirect majority-owned subsidiary of MacAndrews & Forbes Incorporated (together with certain of its affiliates other than Revlon and the Company, "MacAndrews & Forbes"), a corporation wholly-owned by Ronald O. Perelman. The Company is a leading global beauty company with an iconic portfolio of brands. The Company develops, manufactures, markets, distributes and sells an extensive array of color cosmetics, hair color, hair care and hair treatments, fragrances, skin care, beauty tools, men’s grooming products, anti-perspirant deodorants and other beauty care products across a variety of distribution channels. The Company is building a combined organization that is entrepreneurial, agile and boldly creative, with a passion for beauty. The Company has strategic brand builders developing a diverse portfolio of iconic brands that delight consumers around the world wherever and however they shop for beauty. The Company strives to be an ethical company that values inclusive leadership and is committed to sustainable and responsible growth. The Company operates in four reporting segments: the consumer division (“Consumer”); the professional division (“Professional”); Elizabeth Arden; and Other. The Company’s principal customers for its products in the Consumer segment include large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, the Internet/e-commerce, television shopping, department stores, one-stop shopping beauty retailers, specialty cosmetics stores and perfumeries in the U.S. and internationally. The Company's principal customers for its products in the Professional segment include hair and nail salons and distributors to professional salons in the U.S. and internationally. On September 7, 2016 (the "Elizabeth Arden Acquisition Date"), the Company completed the acquisition of Elizabeth Arden, Inc. ("Elizabeth Arden" and the “Elizabeth Arden Acquisition”). Elizabeth Arden is a global prestige beauty products company with an iconic portfolio of brands that are highly complementary to the Company's existing brand portfolio and are sold worldwide. The Company's principal customers for its products in the Elizabeth Arden segment include prestige retailers, the mass retail channel, perfumeries, boutiques, department and specialty stores, travel retailers and distributors, as well as direct sales to consumers via Elizabeth Arden branded retail stores and e-commerce business. Elizabeth Arden products are also sold through the Elizabeth Arden Red Door Spa beauty salons and spas. The operating results and purchase accounting for the Company's Elizabeth Arden Acquisition are presented in the Elizabeth Arden segment. Refer to Note 2, "Business Combinations," for further details related to the Elizabeth Arden Acquisition. The accompanying Consolidated Financial Statements include the Company's accounts after the elimination of all material intercompany balances and transactions. Certain prior year amounts have been reclassified to conform to the current year presentation. The preparation of the Company's Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Consolidated Financial Statements include, but are not limited to, allowances for doubtful accounts, inventory valuation reserves, expected sales returns and allowances, trade support costs, certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of goodwill, intangible and long-lived assets, income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities, restructuring costs, certain estimates and assumptions used in the calculation of the net periodic benefit (income) costs and the projected benefit obligations for the Company’s pension and other post-retirement plans, including the expected long-term return on pension plan assets and the discount rate used to value the Company’s pension benefit obligations. Discontinued Operations Presentation As a result of the Company's decision on December 30, 2013 to exit its direct manufacturing, warehousing and sales business operations in mainland China within the Consumer segment, the Company has reported the results of its former China operations within (loss) income from discontinued operations, net of taxes in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income for all periods presented. See Note 4, "Discontinued Operations," for further discussion. Cash and Cash Equivalents: Cash equivalents are primarily investments in high-quality, short-term money market instruments with original maturities of three months or less and are carried at cost, which approximates fair value. Cash equivalents were $2.5 million and $1.6 million as of December 31, 2016 and 2015, respectively. Accounts payable include $19.3 million and $19.5 million of outstanding checks not yet presented for payment at December 31, 2016 and 2015, respectively. Trade Receivables: Trade receivables represent payments due to the Company for previously recognized net sales, reduced by an allowance for doubtful accounts for balances which are estimated to be uncollectible at December 31, 2016 and 2015, respectively. The Company grants credit terms in the normal course of business to its customers. Trade credit is extended based upon periodically updated evaluations of each customer's ability to perform its payment obligations. The Company does not normally require collateral or other security to support credit sales. The allowance for doubtful accounts is determined based on historical experience and ongoing evaluations of the Company's receivables and evaluations of the risks of payment. The allowance for doubtful accounts is recorded against trade receivable balances when they are deemed uncollectible. Recoveries of trade receivables previously reserved are recorded in the consolidated statements of operations and comprehensive (loss) income when received. At each of December 31, 2016 and 2015, the Company's three largest customers accounted for an aggregate of approximately 27% of the Company's outstanding trade receivables. Inventories: Inventories are stated at the lower of cost or market value. Cost is based on standard cost and production variances, which approximates actual cost on the first-in, first-out method. Cost components include direct materials, direct labor and direct overhead, as well as in-bound freight. The Company records adjustments to the value of inventory based upon its forecasted plans to sell products included in inventory, as well as planned product discontinuances. The physical condition (e.g., age and quality) of the inventories is also considered in establishing its valuation. These adjustments are estimates, which could vary significantly, either favorably or unfavorably, from the amounts that the Company may ultimately realize upon the disposition of inventories if future economic conditions, customer inventory levels, product discontinuances, sales return levels or competitive conditions differ from the Company's estimates and expectations. Property, Plant and Equipment and Other Assets: Property, plant and equipment is recorded at cost and is depreciated on a straight-line basis over the estimated useful lives of such assets as follows: land improvements, 20 to 30 years; buildings and improvements, 5 to 50 years; machinery and equipment, 3 to 15 years; counters and trade fixtures, 3 to 5 years; office furniture and fixtures, 3 to 15 years; and capitalized software, 2 to 10 years. Leasehold improvements and building improvements are amortized over their estimated useful lives or the terms of the leases or remaining life of the original structure, respectively, whichever is shorter. Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements are capitalized. Counters and trade fixtures are amortized over their estimated useful life of the in-store counter and display related assets. The estimated useful life may be subject to change based upon declines in net sales and/or changes in merchandising programs. See Note 7, “Property, Plant and Equipment," for further discussion. Included in other assets are permanent wall displays amounting to $64.1 million and $65.6 million as of December 31, 2016 and 2015, respectively, which are amortized generally over a period of 1 to 3 years. In the event of product discontinuances, from time to time, the Company may accelerate the amortization of related permanent wall displays based on the estimated remaining useful life of the asset. Amortization expense for permanent wall displays was $47.8 million, $41.3 million and $42.5 million for 2016, 2015 and 2014, respectively. The Company capitalizes deferred financing costs related to the issuance of its revolving credit facilities, which costs were $6.0 million and $1.3 million as of December 31, 2016 and 2015, respectively, and amortizes such costs over the terms of the related debt instruments using the effective-interest method. Long-lived assets, such as property, plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, the Company estimates the undiscounted future cash flows (excluding interest) resulting from the use of the asset and its ultimate disposition. If the sum of the undiscounted cash flows (excluding interest) is less than the carrying value, the Company recognizes an impairment loss, measured as the amount by which the carrying value exceeds the fair value of the asset. There were no significant impairment charges to long-lived assets during the years ended December 31, 2016, 2015 and 2014. Goodwill: Goodwill represents the excess purchase price for businesses acquired over the fair value of net assets acquired. Goodwill is not amortized, but rather is reviewed annually for impairment at the reporting unit level using October 1st carrying values, or when there is evidence that events or changes in circumstances indicate that the Company’s carrying amount may not be recovered. For 2016, in assessing whether goodwill was impaired in connection with its annual impairment test performed during the fourth quarter using October 1, 2016 carrying values, the Company performed qualitative assessments to determine whether it would be necessary to perform the two-step process, as prescribed by Accounting Standards Codification ("ASC") 350, Intangibles - Goodwill and Other, to assess the Company's goodwill for indicators of impairment. In performing the qualitative assessments, the Company determined that for the Revlon, Almay and Other and Professional reporting units, it was more likely than not that the fair value of each of the Company's reporting units exceeded their carrying amounts. The Company determined it would utilize the two-step process to test the Global Color Brands ("GCB") and Other reporting units for impairment. In the first step of this test, the Company compared the fair values of the GCB and Other reporting units, determined based upon discounted estimated future cash flows, to the carrying amounts of each reporting unit, including goodwill. The fair value of the GCB reporting unit exceeded its carrying amount and therefore no further impairment testing was performed and no impairment loss was indicated. The carrying amount of the Other reporting unit exceeded its fair value and the goodwill of the reporting unit was considered potentially impaired. The Company performed step two of the goodwill impairment test for its Other reporting unit to measure the amount of such unit's impairment loss. As a result of the annual impairment test for 2016, the Company recognized a $16.7 million non-cash goodwill impairment charge in the fourth quarter of 2016 related to the Other reporting unit. For 2015, the Company utilized the two-step process in assessing whether goodwill was impaired for each of the Company's four reporting units. In the first step of this test, the Company compared the fair value of each of the Company's four reporting units, determined based upon discounted estimated future cash flows, to the carrying amount of such reporting unit, including goodwill. Where the fair value of such reporting unit exceeded the carrying amount, no further impairment testing was required and no impairment loss was indicated. Where the carrying amount of the reporting unit exceeded the fair value, the goodwill of the reporting unit was considered potentially impaired and the Company performed step two of the goodwill impairment test to measure the amount of the impairment loss. As a result of the annual impairment test for 2015, the Company recognized a $9.7 million non-cash goodwill impairment charge in the fourth quarter of 2015 related to the Global Color Brands reporting unit. For 2014, the Company performed qualitative assessments to determine whether it would be necessary to perform the two-step goodwill impairment test and to assess the Company's indefinite-lived intangible assets for indicators of impairment, and in each case determined that it was more likely than not that the fair value of each of the Company's reporting units and indefinite-lived intangible assets exceeded their carrying amounts for such reporting years. The Company did not record any impairment of goodwill during the year ended December 31, 2014 as a result of its annual impairment test. See Note 2, “Business Combinations,” and Note 8, “Goodwill and Intangible Assets, Net,” for further discussion of the Company's goodwill and annual impairment test. Intangible Assets, net: Intangible Assets, net, include trade names and trademarks, customer relationships, patents and internally developed intellectual property ("IP") and acquired licenses. Indefinite-lived intangible assets, consisting of certain trade names, are not amortized, but rather are tested for impairment annually during the fourth quarter using October 1, 2016 carrying values, similar to goodwill, and the Company recognizes an impairment if the carrying amount of its intangible assets exceeds its fair value. Intangible assets with finite useful lives are amortized over their respective estimated useful lives to their estimated residual values. The Company writes off the gross carrying amount and accumulated amortization for intangible assets in the year in which the asset becomes fully amortized. Finite-lived intangible assets are considered for impairment upon the occurrence of certain “triggering events” and the Company recognizes an impairment if the carrying amount of the long-lived asset group exceeds the Company's estimate of the asset group's undiscounted future cash flows. As a result of the annual impairment test (described above), the Company also recognized a $6.7 million non-cash intangible assets impairment charge in the fourth quarter of 2016 related to the Other reporting unit. There was no impairment of intangible assets in 2015 or 2014. See Note 2, “Business Combinations,” and Note 8, “Goodwill and Intangible Assets, Net,” for further discussion of the Company's intangible assets, including a summary of finite-lived and indefinite-lived intangible assets. Revenue Recognition and Sales Returns: The Company's policy is to recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection is probable. The Company records revenue from the sale of its products when risk of loss and title to the products transfers to the customer. Net sales are comprised of gross revenues less expected product returns, trade discounts and customer allowances, which include costs associated with off-invoice mark-downs and other price reductions, as well as trade promotions and coupons. These incentive costs are recognized at the later of the date on which the Company recognizes the related revenue or the date on which the Company offers the incentive. The Company allows customers to return their unsold products if and when they meet certain Company-established criteria as set forth in the Company's trade terms. The Company regularly reviews and revises, when deemed necessary, its estimates of sales returns based primarily upon the historical rate of actual product returns, planned product discontinuances, new product launches and estimates of customer inventory and promotional sales. The Company records sales returns as a reduction to sales and cost of sales, and an increase to accrued liabilities and inventories. Returned products, which are recorded as inventories, are valued based upon the amount that the Company expects to realize upon their subsequent disposition. The physical condition and marketability of the returned products are the major factors considered by the Company in estimating their realizable value. Revenues derived from licensing arrangements, including any pre-payments, are recognized in the period in which they are earned, but not before the initial license term commences. Cost of Sales: Cost of sales includes all of the costs to manufacture the Company's products. For products manufactured in the Company's own facilities, such costs include raw materials and supplies, direct labor and factory overhead. For products manufactured for the Company by third-party contractors, such cost represents the amounts invoiced by the contractors. Cost of sales also includes the cost of refurbishing products returned by customers that will be offered for resale and the cost of inventory write-downs associated with adjustments of held inventories to their net realizable value. These costs are reflected in the Company’s consolidated statements of operations and comprehensive (loss) income when the product is sold and net sales revenues are recognized or, in the case of inventory write-downs, when circumstances indicate that the carrying value of inventories is in excess of their recoverable value. Additionally, cost of sales reflects the costs associated with any free products included as sales and promotional incentives. These incentive costs are recognized on the later of the date that the Company recognizes the related revenue or the date on which the Company offers the incentive. Selling, General and Administrative Expenses: Selling, general and administrative (“SG&A”) expenses include expenses to advertise the Company's products, such as television advertising production costs and air-time costs, print advertising costs, digital marketing costs, promotional displays and consumer promotions. SG&A expenses also include the amortization of permanent wall displays and finite-lived intangible assets, depreciation of certain fixed assets, distribution costs (such as freight and handling), non-manufacturing overhead (principally personnel and related expenses), selling and trade educations fees, insurance and professional service fees. Advertising: Advertising within SG&A expenses includes television, print, digital marketing and other advertising production costs which are expensed the first time the advertising takes place. The costs of promotional displays are expensed in the period in which they are shipped to customers. Advertising expenses were $421.1 million, $368.7 million and $383.2 million for 2016, 2015 and 2014, respectively, and were included in SG&A expenses in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company also has various arrangements with customers pursuant to its trade terms to reimburse them for a portion of their advertising costs, which provide advertising benefits to the Company. Additionally, from time to time, the Company may pay fees to customers in order to expand or maintain shelf space for its products. The costs that the Company incurs for "cooperative" advertising programs, end cap placement, shelf placement costs, slotting fees and marketing development funds, if any, are expensed as incurred and are recorded as a reduction within net sales. Distribution Costs: Costs associated with product distribution, such as freight and handling costs, are recorded within SG&A expenses when incurred. Distribution costs were $98.4 million, $80.2 million and $84.9 million for 2016, 2015 and 2014, respectively. Income Taxes: Income taxes are calculated using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, as well as for operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes the effect of a change in income tax rates on deferred tax assets and liabilities in income in the period that includes the enactment date. The Company records valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company recognizes a tax position in its financial statements when it is more likely than not that the position will be sustained upon examination, based on the merits of such position. The Company recognizes liabilities for unrecognized tax positions in the U.S. and other tax jurisdictions based on an estimate of whether and the extent to which additional taxes will be due. If payment of these amounts is ultimately not required, the reversal of the liabilities would result in additional tax benefits recognized in the period in which the Company determines that the liabilities are no longer required. If the estimate of tax liabilities is ultimately less than the final assessment, this will result in a further charge to expense. The Company recognizes interest and penalties related to income tax matters in income tax expense. Research and Development: Research and development expenditures are expensed as incurred and included within SG&A expenses. The amounts charged in 2016, 2015 and 2014 for research and development expenditures were $37.0 million, $31.2 million and $31.6 million, respectively. Foreign Currency Translation: Assets and liabilities of foreign operations, whose functional currency is the local currency, are translated into U.S. Dollars at the rates of exchange in effect at the balance sheet date. Income and expense items are translated at the weighted average exchange rates prevailing during each period presented. Gains and losses resulting from foreign currency transactions are included in the results of operations. Gains and losses resulting from translation of financial statements of foreign subsidiaries and branches operating in non-hyperinflationary economies are recorded as a component of accumulated other comprehensive loss until either the sale or upon the complete or substantially complete liquidation by the Company of its investment in a foreign entity. To the extent that foreign subsidiaries and branches operate in hyperinflationary economies, non-monetary assets and liabilities are translated at historical rates and translation adjustments are included in the Company's results of operations. Classes of Stock: Products Corporation designated 1,000 shares of preferred stock as the "RCPC Preferred Stock", of which 546 shares were outstanding as of December 31, 2016 and all of which are held by Revlon. The holder of the RCPC Preferred Stock is not entitled to receive any dividends. The RCPC Preferred Stock is entitled to a liquidation preference of $100,000 per share before any distribution is made to the holder of Products Corporation's common stock. The holder of the RCPC Preferred Stock does not have any voting rights, except as required by law. The RCPC Preferred Stock may be redeemed at any time by Products Corporation, at its option, for $100,000 per share. However, the terms of Products Corporation's various debt agreements currently restrict Products Corporation's ability to effect such redemption. Stock-Based Compensation: The Company recognizes stock-based compensation costs for its restricted stock, measured at the fair value of each award at the time of grant, as an expense over the period during which an employee is required to provide service. Upon the vesting of restricted stock, any resulting tax benefits are recognized in additional paid-in-capital. Any resulting tax deficiencies are recognized in the consolidated statements of operations and comprehensive (loss) income as tax expense to the extent that the tax deficiency amount exceeds any existing additional paid-in-capital resulting from previously realized excess tax benefits from previous awards. The Company reflects such excess tax benefits as cash flows from financing activities in the consolidated statements of cash flows. Derivative Financial Instruments: The Company is exposed to certain risks relating to its ongoing business operations. The Company uses derivative financial instruments, including: (i) foreign currency forward exchange contracts (“FX Contracts”) intended for the purpose of managing foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates on the Company’s net cash flows; and (ii) interest rate hedging transactions intended for the purpose of managing interest rate risk associated with Products Corporation’s variable rate indebtedness. Foreign Currency Forward Exchange Contracts Products Corporation enters into FX Contracts primarily to hedge the anticipated net cash flows resulting from inventory purchases and intercompany payments denominated in currencies other than the local currencies of the Company’s foreign and domestic operations and generally have maturities of less than one year. The Company does not apply hedge accounting to its FX Contracts. The Company records FX Contracts in its consolidated balance sheet at fair value and immediately recognizes changes in fair value in earnings. Fair value of the Company’s FX Contracts is determined by using observable market transactions of spot and forward rates. See Note 13, “Financial Instruments,” for further discussion of the Company's FX Contracts. Interest Rate Swap As a result of the Company completing several debt transactions in connection with the Elizabeth Arden Acquisition, the critical terms of the 2013 Interest Rate Swap (as hereinafter defined) no longer matched the terms of the underlying debt and the 2013 Interest Rate Swap was determined to no longer be highly effective. Accordingly, the Company discontinued hedge accounting for the 2013 Interest Rate Swap during the third quarter of 2016. Following the de-designation of the 2013 Interest Rate Swap, changes in the fair value of the Interest Rate Swap are accounted for as a component of other non-operating expenses. Accumulated deferred losses on the 2013 Interest Rate Swap of $4.9 million, or $3.0 million net of tax, at December 31, 2016 that were previously recorded as a component of accumulated other comprehensive loss will be amortized into earnings over the remaining term of the 2013 Interest Rate Swap. See Note 13, “Financial Instruments,” for further discussion of the Company's 2013 Interest Rate Swap. Refer to Note 11, "Long-Term Debt," for further details related to financing the Elizabeth Arden Acquisition and related debt restructuring transactions. Recently Adopted Accounting Pronouncements In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," which requires deferred income tax assets and liabilities to be classified as noncurrent within a company's balance sheet. Under previous guidance, the Company was required to separate deferred income tax assets and liabilities into current and noncurrent amounts. Netting deferred tax assets and deferred tax liabilities by tax jurisdiction is still required under ASU 2015-17. The Company adopted ASU No. 2015-17 beginning on January 1, 2016 and the Company's previously recorded deferred tax assets were adjusted to reflect the adoption of ASU No. 2015-17. The adoption of ASU No. 2015-17 resulted in no adjustment to the Company’s results of operations and stockholders’ deficiency and had the following impact on the previously reported Consolidated Balance Sheet as of December 31, 2015 and the Consolidated Statements of Cash Flows for 2015 and 2014:
In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments," which eliminated the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine such adjustments, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. This guidance is effective for annual periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU No. 2015-16 beginning on January 1, 2016 and the adoption of this new guidance did not have a material impact on the Company’s results of operations, financial condition and financial statement disclosures. In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which requires debt issuance costs to be presented in the financial statements as a deduction from the corresponding debt liability, consistent with the presentation of debt discounts. This guidance became effective for annual periods beginning after December 15, 2015, with early adoption permitted, and is applied retrospectively. The Company adopted ASU No. 2015-03 beginning on January 1, 2016 and the Company's previously recorded other assets and long-term debt were adjusted to reflect the adoption of ASU No. 2015-03. The adoption of ASU No. 2015-03 resulted in no adjustment to the Company’s results of operations, cash flows and stockholder's deficiency and had the following impact on the Company's previously reported Consolidated Balance Sheet as of December 31, 2015:
In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," that explicitly requires management to assess an entity's ability to continue as a going concern and to provide related footnote disclosures if conditions give rise to substantial doubt. According to ASU No. 2014-15, substantial doubt exists if it is probable that the entity will be unable to meet its obligations within one year after the financial statement's issuance date. The likelihood threshold of "probable," similar to its current use in U.S. GAAP for loss contingencies, is used to define substantial doubt. Disclosures are required under ASU No. 2014-15 if conditions give rise to substantial doubt, including whether and how management's plans will alleviate the substantial doubt. This guidance became effective for annual periods beginning after December 15, 2015, with early adoption prohibited. The Company adopted ASU No. 2014-15 beginning January 1, 2016 and the adoption of this new guidance did not have a material impact on the Company’s results of operations, financial condition and financial statement disclosures. Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment,” which simplifies the annual goodwill impairment analysis test by eliminating Step 2 of the current two-step impairment test. Under this new guidance, an entity would continue to perform the first step of the annual impairment test by comparing the carrying amount of a reporting unit with its fair value. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, the goodwill impairment charge would be equal to the amount of such difference. This guidance is effective for annual periods beginning after December 15, 2019, with early adoption permitted. The Company expects to adopt ASU No. 2017-04 beginning as of January 1, 2020 and is in the process of assessing the impact that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which provides specific guidance on the presentation of changes in restricted cash and restricted cash equivalents on the statement of cash flows. Under this new standard, the changes in restricted cash and restricted cash equivalents will be required to be disclosed in reconciling the opening and closing balances on the statement of cash flows. This guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The Company expects to adopt ASU No. 2016-18 beginning as of January 1, 2018 and is in the process of assessing the impact that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Receipts and Cash Payments,” which aims to standardize how certain transactions are classified within the Statement of Cash Flows, including, among other issues, debt prepayment and extinguishment costs and contingent consideration payments made after a business combination. This guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The Company expects to adopt ASU No. 2016-15 beginning as of January 1, 2018 and is in the process of assessing the impact that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which simplifies certain aspects of accounting for share-based payment transactions, including transactions in which an employee uses shares to satisfy the employer’s minimum statutory income tax withholding obligation, forfeitures and income taxes when awards vest or are settled. This guidance is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU No. 2016-09 beginning as of January 1, 2017 and expects that this new guidance will not have a material impact on the Company’s results of operations, financial condition and/or financial statement disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," which requires lessees to recognize a right-of-use asset and a liability on the balance sheet for all leases, with the exception of short-term leases. The lease liability will be equal to the present value of lease payments and the right-of-use asset will be based on the lease liability, subject to adjustment such as for initial direct costs. Leases will continue to be classified as either operating or finance leases in the income statement. This guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company expects to adopt ASU No. 2016-02 beginning as of January 1, 2019 and is in the process of assessing the impact that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. In July 2015, the FASB issued ASU No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory," which simplifies the subsequent measurement of inventories by requiring inventory to be measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU No. 2015-11 beginning as of January 1, 2017 and expects that this new guidance will not have a material impact on the Company’s results of operations, financial condition and/or financial statement disclosures. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”. This new standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The underlying principle of this new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. Entities may adopt this new standard either retrospectively for all periods presented in the financial statements (i.e., the full retrospective method) or as a cumulative-effect adjustment as of the date of adoption (i.e., the modified retrospective method), without applying to comparative years’ financial statements. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date,” which allows for a deferral of the adoption date for ASU No. 2014-09 until January 1, 2018 and permits early adoption of ASU No. 2014-09, but not before the effective date of January 1, 2017. The Company plans to adopt ASU No. 2014-09 on January 1, 2018 and anticipates adopting this standard using the modified retrospective method. The Company is currently in the process of evaluating the impact that ASU No. 2014-09 will have on the Company’s results of operations, financial condition and financial statement disclosures. While the Company is continuing to assess all impacts of ASU No. 2014-09, it currently believes the most significant areas potentially impacted by this new standard relate to its accounting for customer incentives and cooperative advertising. The Company expects to complete its evaluation of the impact of adopting ASU No. 2014-09 in 2017 and will provide further updates in future periods. |
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Restructuring and Related Activities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES EA Integration Restructuring Program In December 2016, in connection with integrating the Elizabeth Arden and Revlon organizations, the Company determined to begin 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 are designed to reduce the Company’s SG&A expenses. As a result of the EA Integration Restructuring Program, the Company expects to eliminate approximately 350 positions worldwide. In connection with implementing the EA Integration Restructuring Program, the Company expects to recognize approximately $65 million to $75 million of total pre-tax restructuring charges (the “EA Integration Restructuring Charges”), consisting of: (i) approximately $40 million to $50 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, 2016 in connection with the EA Integration Restructuring Program is presented in the following table:
(a) Inventory adjustments are recorded within cost of sales in the Company’s Consolidated Statement of Operations and Comprehensive (Loss) Income. (b) Other restructuring related charges are recorded within SG&A in the Company’s Consolidated Statement of Operations and Comprehensive (Loss) Income. Of the $31.7 million of EA Integration Restructuring Charges recognized in 2016, $6.5 million related to the Elizabeth Arden segment, $5.6 million related to the Professional segment, $4.2 million related to the Consumer Segment and the remaining charges of $15.4 million were included in unallocated corporate expenses. The Company expects that cash payments will total approximately $65 million to $75 million in connection with the EA Integration Restructuring Charges, with approximately $30 million to $40 million expected to be paid in 2017, and the remaining balance to be substantially paid by the end of 2020. 2015 Efficiency Program In September 2015, the Company initiated certain restructuring actions to drive certain organizational efficiencies across the Company's Consumer and Professional segments (the "2015 Efficiency Program"). These actions, which commenced during 2015 and are planned to occur through 2017, are expected to reduce general and administrative expenses within the Consumer and Professional segments. Of the $1.3 million of restructuring and related charges recognized in 2016 for the 2015 Efficiency Program, $0.4 million related to the Consumer segment and $0.5 million related to the Professional segment, with the remaining charges included within unallocated corporate expenses. A summary of the restructuring and related charges incurred through December 31, 2016 in connection with the 2015 Efficiency Program is presented in the following table:
Of the cumulative $10.8 million of restructuring and related charges recognized through 2016 related to the 2015 Efficiency Program, $6.4 million related to the Consumer segment, $3.7 million related to the Professional segment and the remaining charges related to unallocated corporate expenses. The Company expects that cash payments will total approximately $12 million in connection with the 2015 Efficiency Program, including $0.2 million for capital expenditures (which capital expenditures are excluded from total restructuring and related charges expected to be recognized for the 2015 Efficiency Program), of which $3.3 million was paid in 2016 and $2.8 million was paid in 2015. The remaining balance is expected to be paid in 2017. Restructuring Reserve The related liability balance and activity for each of the Company's restructuring programs are presented in the following table:
(a) Includes $2.8 million in charges related to inventory adjustments and other restructuring related charges that are reflected within cost of sales and SG&A, respectively, in the Company’s 2016 Consolidated Statement of Operations and Comprehensive (Loss) Income. (b) 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. (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) Includes $2.6 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"). At December 31, 2016 and 2015, all of the restructuring reserve balances were included within accrued expenses and other in the Company's Consolidated Balance Sheets. |
DISCONTINUED OPERATIONS |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS On December 30, 2013, the Company announced that it was implementing the December 2013 Program, which primarily included exiting its direct manufacturing, warehousing and sales business operations in mainland China within the Consumer segment. The results of the China discontinued operations are included within Loss from discontinued operations, net of taxes, and relate entirely to the Consumer segment. The summary comparative financial results of discontinued operations are as follows:
(a) Net sales during 2014 include favorable adjustments to sales returns related to the Company's exit of its direct manufacturing, warehousing and sales business operations in mainland China within the Consumer segment. Assets and liabilities of the China discontinued operations included in the Consolidated Balance Sheets consist of the following:
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INVENTORIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES
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PREPAID EXPENSES AND OTHER |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PREPAID EXPENSES AND OTHER | PREPAID EXPENSES AND OTHER
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PROPERTY, PLANT AND EQUIPMENT |
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PROPERTY, PLANT AND EQUIPMENT | PROPERTY, PLANT AND EQUIPMENT
Depreciation and amortization expense for 2016, 2015 and 2014 was $45.0 million, $37.0 million and $36.9 million, respectively. |
GOODWILL AND INTANGIBLE ASSETS, NET |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The following table presents the changes in goodwill by segment during each of 2016 and 2015:
(a) The goodwill acquired during 2015 relates to: (i) $19.5 million of goodwill acquired in the CBB Acquisition, which was assigned to the Company's Other segment; and (ii) $1.9 million of goodwill acquired in the Cutex U.S. Acquisition. See Note 2, "Business Combinations," for further discussion of the Cutex U.S. and CBB acquisitions. (b) The goodwill acquired during 2016 relates to: (i) $221.7 million of goodwill acquired in the Elizabeth Arden Acquisition; and (ii) $17.4 million of goodwill acquired in the Cutex Acquisitions. See Note 2, "Business Combinations," for further discussion of the Elizabeth Arden Acquisition and Cutex International Acquisition. For 2016, in assessing whether goodwill was impaired in connection with its annual impairment test performed during the fourth quarter of 2016 using October 1st, 2016 carrying values, the Company performed qualitative assessments to determine whether it would be necessary to perform the two-step process, as prescribed by ASC 350, Intangibles - Goodwill and Other, to assess the Company's indefinite-lived intangible assets for indicators of impairment. In performing the qualitative assessments, the Company considered the results of the step one test performed in 2015 and the financial performance of the Revlon, Almay and Other and Professional reporting units. Based upon such assessment, the Company determined that it is more likely than not that the fair values of these two reporting units exceeded their carrying amounts for 2016. However, for 2016, the Company determined that it would utilize the two-step process to test the Global Color Brands and Other reporting units for impairment. In the first step of this test, the Company compared the fair values of the GCB and Other reporting units, determined based upon discounted estimated future cash flows, to the carrying amounts of each reporting unit, including goodwill. Where the fair value of such reporting unit exceeded the carrying amounts, no further impairment testing was required and no impairment loss was indicated, which was the result for the GCB step one test. The results of the step one test indicated that impairment indicators may have existed for the Company's Other reporting unit due to the termination of certain fragrance licenses that were not replaced, and accordingly, the Company performed step two of the goodwill impairment test for the Other reporting unit. In the second step, the Company measured the potential impairment of its Other reporting unit by comparing the implied fair value of the Other reporting unit’s goodwill with the carrying amount of its goodwill at October 1, 2016. The implied fair value of the Other reporting unit's goodwill was determined in the same manner as the amount of goodwill recognized in a business combination, where the estimated fair value of the Other reporting unit was allocated to all the assets and liabilities of that reporting unit (including both recognized and unrecognized intangible assets) as if the Other reporting unit had been acquired in a business combination and the estimated fair value of the Other reporting unit was the purchase price paid. When the carrying amount of the reporting unit's goodwill is greater than the implied fair value of that reporting unit's goodwill, an impairment loss is recognized within operations. The Company determined the fair value of the Other reporting unit using discounted estimated future cash flows. The weighted average cost of capital used in testing the Other reporting unit for impairment was 23.0% with a perpetual growth rate of 2.0%. As a result of this annual impairment test, the Company recognized an aggregate $16.7 million non-cash goodwill impairment charge related to the Other reporting unit in the fourth quarter of 2016. Following the recognition of this non-cash goodwill impairment charge, the Other reporting unit had no remaining goodwill as of December 31, 2016. For 2015, the Company utilized the two-step process in assessing whether goodwill was impaired for each of the Company's four reporting units. As a result of the annual impairment testing for 2015, the Company recognized a $9.7 million non-cash goodwill impairment charge related to the GCB reporting unit in the fourth quarter of 2015. The Company did not record any impairment of goodwill during the year ended December 31, 2014 as a result of its annual impairment testing. Intangible Assets, Net The following tables present details of the Company's total intangible assets:
Amortization expense for finite-lived intangible assets was $27.5 million, $22.4 million and $21.3 million for 2016, 2015 and 2014, respectively. The Company reviews finite-lived intangible assets for impairment whenever facts and circumstances indicate that their carrying values may not be fully recoverable. This test compares the current carrying values of the intangible assets to the undiscounted pre-tax cash flows expected to result from the use of the assets. Based upon the results of the annual goodwill impairment testing for the Other reporting unit during 2016, the Company performed an impairment review of the finite-lived intangible assets acquired as part of the 2015 CBB Acquisition. As a result of this review, the Company recognized during the fourth quarter of 2016 within the Other reporting unit $4.2 million, $2.0 million and $0.5 million of non-cash impairment charges as a result of the change in the fair value of customer relationships, distribution rights and trade names, respectively, in the aggregate amount of $6.7 million. For the year ended December 31, 2016, no impairment was recognized related to the carrying value of any other finite- or indefinite-lived intangible assets. The Company did not recognize any impairment charges related to the carrying value of identifiable intangible assets in 2015 or 2014. The following table reflects the estimated future amortization expense, a portion of which is subject to exchange rate fluctuations, for the Company's finite-lived intangible assets as of December 31, 2016:
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ACCRUED EXPENSES AND OTHER |
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ACCRUED EXPENSES AND OTHER | ACCRUED EXPENSES AND OTHER
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SHORT-TERM BORROWINGS |
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Short Term Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | SHORT-TERM BORROWINGS Products Corporation had outstanding short-term borrowings (excluding borrowings under the 2016 Senior Credit Facilities for 2016, and the Old Term Loan Facility (as hereinafter defined) for 2015, which are reflected in Note 11, "Long-Term Debt"), aggregating to $10.8 million and $11.3 million at December 31, 2016 and 2015, respectively. The weighted average interest rate on these short-term borrowings outstanding at December 31, 2016 and 2015 was 5.0% and 4.9%, respectively. |
LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT
(i) The Old Term Loan Facility, which was in place as of December 31, 2015, was comprised of: (i) the term loan due November 19, 2017 in the original aggregate amount of $675.0 million (the "2011 Term Loan"); and (ii) the term loan due October 8, 2019 in the original aggregate amount of $700.0 million (the "Old Acquisition Term Loan") which, respectively, had $651.4 million and $658.6 million in aggregate principal balance outstanding upon their complete refinancing on the September 7, 2016 Elizabeth Arden Acquisition Date (together, the "Old Term Loan Facility" and the "Old Term Loan Agreement," respectively). In connection with the Elizabeth Arden Acquisition and related financing transactions, the Old Term Loan Facility was completely refinanced and terminated on the Elizabeth Arden Acquisition Date. See below for 2016 debt-related transactions. (ii) At December 31, 2016, the Company classified $18.1 million as the current portion of long-term debt, comprised primarily of $18.0 million of amortization payments on the 2016 Term Loan Facility scheduled to be paid over the next four calendar quarters. At December 31, 2015, the Company classified $30.0 million as the current portion of long-term debt, which was comprised of (a) a $23.2 million required “excess cash flow” prepayment (as defined under the Old Term Loan Agreement, as hereinafter defined) that was paid on February 29, 2016, and (b) the Company’s regularly scheduled $1.7 million quarterly principal amortization payments under the Old Term Loan Facility due in 2016. The Company completed the following debt transactions during 2016 and 2015. 2016 Debt-Related Transactions In connection with and substantially concurrently with closing the Elizabeth Arden Acquisition, Products Corporation entered into the 2016 Term Loan Facility and the 2016 Revolving Credit Facility (together the "2016 Senior Credit Facilities"). Additionally, as part of financing the Elizabeth Arden Acquisition, in August 2016 Products Corporation completed the issuance of $450.0 million aggregate principal amount of its 6.25% Senior Notes (the “6.25% Senior Notes Offering”), which funds were released from escrow (the “Escrow Release”) on the Elizabeth Arden Acquisition Date. In connection with entering into the 2016 Senior Credit Facilities, Products Corporation maintained on the 2016 Term Loan Facility its existing floating-to-fixed 2013 Interest Rate Swap (as hereinafter defined) based on a notional amount of $400 million that previously applied to Products Corporation’s Old Acquisition Term Loan, which loan was refinanced in full in connection with Products Corporation's consummation of the 2016 Senior Credit Facilities and the 6.25% Senior Notes Offering. The proceeds of Products Corporation's 6.25% Senior Notes Offering and the 2016 Term Loan Facility, together with approximately $35.0 million of borrowings under the 2016 Revolving Credit Facility, and approximately $126.7 million of cash on hand, were used to: (A) fund the Elizabeth Arden Acquisition, including: (i) repurchasing the entire $350.0 million aggregate principal amount then-outstanding of the Elizabeth Arden Old Senior Notes; (ii) repaying the entire $142.0 million aggregate principal amount of borrowings outstanding as of the Elizabeth Arden Acquisition Date under Elizabeth Arden’s $300.0 million revolving credit facility (which facility was terminated upon such repayment); (iii) repaying the entire $25.0 million aggregate principal amount of borrowings outstanding as of the Elizabeth Arden Acquisition Date under Elizabeth Arden's second lien credit facility (which facility was terminated upon such repayment); and (iv) retiring the entire $55.0 million liquidation preference of all 50,000 shares of Elizabeth Arden's issued and outstanding preferred stock, which amount included a $5.0 million change of control premium; and (B) to completely refinance and repay all of the $651.4 million in aggregate principal balance outstanding under Products Corporation’s then-existing 2011 Term Loan and all of the $658.6 million in aggregate principal balance outstanding under Products Corporation’s Old Acquisition Term Loan (each of which facilities were terminated upon such prepayment). The Company did not incur any material early termination penalties in connection with repaying such facilities and preferred stock. See below for a summary description of the agreements governing the 2016 Senior Credit Facilities and 6.25% Senior Notes. Amended Term Loan Facility - Excess Cash Flow Payment In February 2016, Products Corporation prepaid $23.2 million of indebtedness, then outstanding under its Old Term Loan Facility, representing 50% of its 2015 “excess cash flow” as defined by, and required under, Old Term Loan Agreement. The prepayment was applied on a ratable basis between the principal amounts outstanding under the 2011 Term Loan and the Old Acquisition Term Loan. The amount of the prepayment that was applied to the 2011 Term Loan reduced the principal amount outstanding by $11.5 million to $651.4 million (as all amortization payments under the 2011 Term Loan had been paid). The $11.7 million that was applied to the Old Acquisition Term Loan reduced Products Corporation's future annual amortization payments under such loan on a ratable basis from $6.9 million prior to the prepayment to $6.8 million after giving effect to the prepayment and through its maturity on October 8, 2019. The 2011 Term Loan and Old Acquisition Term Loan were completely refinanced and terminated in connection with financing the Elizabeth Arden Acquisition. 2015 Debt Related Transaction Old Term Loan Facility - Excess Cash Flow Payment In March 2015, Products Corporation prepaid $24.6 million of indebtedness then outstanding under its Old Term Loan Facility, representing 50% of its 2014 “excess cash flow” as defined by, and as required under, the Old Term Loan Agreement. The prepayment was applied on a ratable basis between the principal amounts then outstanding under the 2011 Term Loan and the Old Acquisition Term Loan. The amount of the prepayment that was applied to the 2011 Term Loan reduced the principal amount then outstanding by $12.1 million to $662.9 million (as all amortization payments under the 2011 Term Loan had been paid). The $12.5 million that was applied to the Old Acquisition Term Loan reduced Products Corporation's future regularly scheduled quarterly amortization payments under the Old Acquisition Term Loan on a ratable basis from $1.8 million prior to the prepayment to $1.7 million after giving effect to the prepayment. The 2011 Term Loan and Old Acquisition Term Loan were completely refinanced and terminated in connection with financing the Elizabeth Arden Acquisition. Long-Term Debt Agreements (a) 2016 Term Loan Facility Principal and Maturity: On the Elizabeth Arden Acquisition Date, Products Corporation entered into the 2016 Term Loan Agreement, for which Citibank, N.A. acts as administrative and collateral agent and which has an initial aggregate principal amount of $1,800.0 million and matures on the earlier of: (x) the seventh anniversary of the Elizabeth Arden Acquisition Date and (y) the 91st day prior to the maturity of Products Corporation’s 5.75% Senior Notes due 2021 (the "5.75% Senior Notes”) if, on that date (and solely for so long as), (i) any of Products Corporation's 5.75% Senior Notes remain outstanding and (ii) Products Corporation’s available liquidity does not exceed the aggregate principal amount of the then outstanding 5.75% Senior Notes by at least $200.0 million. The loans under the 2016 Term Loan Facility were borrowed at an original issue discount of 0.5% to their principal amount. The 2016 Term Loan Facility may be increased by an amount equal to the sum of (x) the greater of $450.0 million and 90% of Products Corporation’s pro forma consolidated EBITDA, plus (y) an unlimited amount to the extent that (1) the first lien leverage ratio (defined as the ratio of Products Corporation’s net senior secured funded debt that is not junior or subordinated to the liens of the Senior Facilities to EBITDA) is less than or equal to 3.5 to 1.0 (for debt secured pari passu with the 2016 Term Loan Facility) or (2) the secured leverage ratio (defined as the ratio of Products Corporation’s net senior secured funded debt to EBITDA) is less than or equal to 4.25 to 1.0 (for junior lien or unsecured debt), plus (z) up to an additional $400.0 million if the 2016 Revolving Credit Facility has been repaid and terminated. Guarantees and Security: Products Corporation and the restricted subsidiaries under the 2016 Term Loan Facility, which include Products Corporation’s domestic subsidiaries, including Elizabeth Arden and its domestic subsidiaries (collectively, the “Restricted Group”), are subject to the covenants under the 2016 Term Loan Agreement. The 2016 Term Loan Facility is guaranteed by each of Products Corporation's existing and future direct or indirect wholly-owned domestic restricted subsidiaries (subject to various exceptions), as well as by Revlon, on a limited recourse basis. The obligations of Revlon, Products Corporation and the subsidiary guarantors under the 2016 Term Loan Facility are secured by pledges of the equity of Products Corporation held by Revlon and the equity of the Restricted Group held by Products Corporation and each subsidiary guarantor (subject to certain exceptions, including equity of first-tier foreign subsidiaries in excess of 65% of the voting equity interests of such entity) and by substantially all tangible and intangible personal and real property of Products Corporation and the subsidiary guarantors (subject to certain exclusions). The obligors and guarantors under the 2016 Term Loan Facility and the 2016 Revolving Credit Facility are identical. The liens securing the 2016 Term Loan Facility on the accounts, inventory, equipment, chattel paper, documents, instruments, deposit accounts, real estate and investment property and general intangibles (other than intellectual property) related thereto (the “Revolving Facility Collateral”) rank second in priority to the liens thereon securing the 2016 Revolving Credit Facility. The liens securing the 2016 Term Loan Facility on all other property, including capital stock, intellectual property and certain other intangible property (the “Term Loan Collateral”), rank first in priority to the liens thereon securing the 2016 Revolving Credit Facility, while the liens thereon securing the 2016 Revolving Credit Facility rank second in priority to the liens thereon securing the 2016 Term Loan Facility. Interest and Fees: Interest accrues on term loans under the 2016 Term Loan Facility at a rate per annum of Adjusted LIBOR (which has a floor of 0.75%) plus a margin of 3.50% or an alternate base rate plus a margin of 2.50%, at Products Corporation’s option, and is payable quarterly, at a minimum. Products Corporation is obligated to pay certain fees and expenses in connection with the 2016 Term Loan Facility. Affirmative and Negative Covenants: The 2016 Term Loan Agreement contains certain affirmative and negative covenants that, among other things, limit the Restricted Group’s ability to: (i) incur additional debt; (ii) incur liens; (iii) sell, transfer or dispose of assets; (iv) make investments; (v) make dividends and distributions on, or repurchases of, equity; (vi) make prepayments of contractually subordinated or junior lien debt; (vii) enter into certain transactions with their affiliates; (viii) enter into sale-leaseback transactions; (ix) change their lines of business; (x) restrict dividends from their subsidiaries or restrict liens; (xi) change their fiscal year; and (xii) modify the terms of certain debt. The negative covenants are subject to various exceptions, including an “available amount basket” based on 50% of Products Corporation’s cumulative consolidated net income, plus a “starter” basket of $200.0 million, subject to Products Corporation’s compliance with a 5.0 to 1.0 ratio of Products Corporation’s net debt to Consolidated EBITDA (as defined in the 2016 Term Loan Agreement), except such compliance is not required when such baskets are used to make investments. While the 2016 Term Loan Agreement contains certain customary representations, warranties and events of default, it does not contain any financial maintenance covenants. Prepayments: The 2016 Term Loan Facility is subject to mandatory prepayments from: (i) the net proceeds from the issuance by Products Corporation or any of its restricted subsidiaries of certain additional debt; (ii) commencing with the excess cash flow calculation with respect to fiscal year ending December 31, 2017, 50% of excess cash flow, with step-downs to 25% and 0% upon achievement of certain first lien leverage ratios and reduced by voluntary prepayments of loans under the 2016 Term Loan Facility and revolving loans under the 2016 Revolving Credit Facility to the extent commitments thereunder are permanently reduced; and (iii) asset sale proceeds of certain non-ordinary course asset sales or other dispositions of property that have not been reinvested to the extent in excess of certain minimum amounts. Products Corporation may voluntarily prepay the 2016 Term Loan Facility without premium or penalty unless Products Corporation prepays a term loan within six months after the Elizabeth Arden Acquisition Date in connection with a repricing transaction (in which case a 1.00% premium is payable). During 2016, the Company incurred approximately $45.2 million of fees and expenses in connection with consummating the 2016 Term Loan Facility, of which $39.3 million were capitalized and are being amortized over the remaining term of the 2016 Term Loan Credit Facility using the effective interest method. The Company expensed the remaining $5.9 million of fees and expenses and wrote-off $10.9 million of unamortized debt discount and deferred financing costs related to the Old Term Loan Facility. These amounts, totaling $16.8 million, were recognized within loss on early extinguishment of debt in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the year ended December 31, 2016. (b) 2016 Revolving Credit Facility Principal and Maturity: On the Elizabeth Arden Acquisition Date, Products Corporation entered into the 2016 Revolving Credit Agreement, for which Citibank, N.A. acts as administrative agent and collateral agent. The 2016 Revolving Credit Facility has an initial maximum availability of $400.0 million (with a $100.0 million sublimit for letters of credit and up to $70.0 million available for swing line loans), which availability is subject to the amount of the borrowing base. The 2016 Revolving Credit Facility may be increased by the greater of (x) $50.0 million and (y) the excess of the borrowing base over the amounts of then-effective commitments. The 2016 Revolving Credit Facility permits certain non-U.S. subsidiaries to borrow in local currencies. The borrowing base calculation under the 2016 Revolving Credit Facility is based on the sum of: (i) 85% of eligible accounts receivable; (ii) the lesser of 85% of the net orderly liquidation value and a percentage of the value specified in respect of different types of eligible inventory; (iii) qualified restricted cash (capped at $75.0 million); and (iv) a temporary increase amount between August 15 and October 31 of each year, which are collectively subject to certain availability reserves set by the administrative agent. The 2016 Revolving Credit Facility matures on the earlier of: (x) the fifth anniversary of the Elizabeth Arden Acquisition Date; and (y) the 91st day prior to the maturity of Products Corporation’s 5.75% Senior Notes if, on that date (and solely for so long as), (i) any of Products Corporation’s 5.75% Senior Notes remain outstanding and (ii) Products Corporation’s available liquidity does not exceed the aggregate principal amount of the then outstanding 5.75% Senior Notes by at least $200.0 million. Guarantees and Security: The Restricted Group under the 2016 Revolving Credit Agreement (which is the same as the Restricted Group under the 2016 Term Loan Agreement) is subject to the covenants under the 2016 Revolving Credit Agreement. The 2016 Revolving Credit Facility is guaranteed by each of Products Corporation's existing and future direct or indirect wholly-owned domestic restricted subsidiaries (subject to various exceptions), as well as by Revlon on a limited recourse basis. The obligations of Revlon, Products Corporation and the subsidiary guarantors under the 2016 Revolving Credit Facility are secured by pledges of the equity of Products Corporation held by Revlon and the equity of Products Corporation’s restricted subsidiaries held by Products Corporation and each subsidiary guarantor (subject to certain exceptions, including equity of first-tier foreign subsidiaries in excess of 65% of the voting equity interests of such entity) and by substantially all tangible and intangible personal and real property of Products Corporation and the subsidiary guarantors (subject to certain exclusions). The obligors and guarantors under the 2016 Revolving Credit Facility and the 2016 Term Loan Facility are identical. The liens on the 2016 Revolving Facility Collateral securing the 2016 Revolving Credit Facility rank first in priority to the liens thereon securing the 2016 Term Loan Facility, which rank second in priority on such collateral. The liens on the Term Loan Collateral securing the 2016 Revolving Credit Facility rank second in priority to the liens thereon securing the 2016 Term Loan Facility, which rank first in priority on such collateral. Interest and Fees: Under the 2016 Revolving Credit Facility, interest is payable quarterly and accrues on borrowings under such facility at a rate per annum equal to either: (i) the alternate base rate plus an applicable margin equal to 0.25%, 0.50% or 0.75%, depending on the average excess availability (based on the borrowing base as most recently reported by Products Corporation to the administrative agent from time to time); or (ii) the Eurocurrency rate plus an applicable margin equal to 1.25%, 1.50% or 1.75%, depending on the average excess availability (based on the borrowing base as most recently reported by Products Corporation to the administrative agent from time to time), at Products Corporation’s option. The applicable margin decreases as average excess availability under the 2016 Revolving Credit Facility increases. Products Corporation is obligated to pay certain fees and expenses in connection with the 2016 Revolving Credit Facility, including a commitment fee of 0.25% for any unused amounts. Loans under the 2016 Revolving Credit Facility may be prepaid without premium or penalty. Affirmative and Negative Covenants: The 2016 Revolving Credit Agreement contains affirmative and negative covenants that are similar to those in the 2016 Term Loan Agreement, other than the “available amount basket” (as described above in the description of the 2016 Term Loan Facility); provided, however, under the 2016 Revolving Credit Agreement the Restricted Group will be able to incur unlimited additional junior secured debt and unsecured debt, make unlimited asset sales and dispositions, make unlimited investments and acquisitions, prepay junior debt and make unlimited restricted payments to the extent that certain “payment conditions” for asset-based credit facilities are satisfied. The 2016 Revolving Credit Agreement contains certain customary representations, warranties and events of default. If Products Corporation’s “Liquidity Amount” (defined in the 2016 Revolving Credit Agreement as the Borrowing Base less the sum of (x) the aggregate outstanding extensions of credit under the 2016 Revolving Credit Facility, and (y) any availability reserve in effect on such date) falls below the greater of $35.0 million and 10% of the maximum availability under the 2016 Revolving Credit Facility (a “Liquidity Event Period”), then the Restricted Group will be required to maintain a consolidated fixed charge coverage ratio (the ratio of Products Corporation’s EBITDA minus capital expenditures to cash interest expense for such period) of a minimum of 1.0 to 1.0 until the first date after 20 consecutive business days for which the Liquidity Amount is equal to or greater than such threshold. If Products Corporation is in default under the consolidated fixed charge coverage ratio under the 2016 Revolving Credit Agreement, Products Corporation may cure such default by Products Corporation and/or Revlon issuing certain equity securities and Products Corporation receiving capital contributions from Revlon, with such cash being deemed to increase EBITDA for the purpose of calculating the applicable ratio. Products Corporation may exercise this cure right no more than two times in any four-quarter period, and no more than five times in total during the term of the 2016 Revolving Credit Facility. Prepayments: Products Corporation must prepay borrowings under the 2016 Revolving Credit Facility to the extent that outstanding loans and letters of credit exceed availability. During a Liquidity Event Period, the administrative agent may apply amounts collected in controlled accounts for the repayment of loans under the 2016 Revolving Credit Facility. The above descriptions of the terms of the 2016 Term Loan Agreement and the 2016 Revolving Credit Facility and the related security and collateral agreements are qualified in their entirety by reference to such agreements, which are incorporated by reference as exhibits to this Form 10-K. During 2016, the Company incurred approximately $5.7 million of fees and expenses in connection with consummating the 2016 Revolving Credit Facility, of which $5.6 million were capitalized as deferred financing costs and are being amortized over the remaining term of the 2016 Revolving Credit Facility using the effective interest method. The Company expensed the remaining $0.1 million of fees and expenses, which were recognized within loss on early extinguishment of debt in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income for the year ended December 31, 2016. (c) 6.25% Senior Notes On August 4, 2016, Revlon Escrow Corporation (the “Escrow Issuer”), which on such date was a wholly owned subsidiary of Products Corporation, completed the 6.25% Senior Notes offering, pursuant to an exemption from registration under the Securities Act of 1933 (as amended, the “Securities Act”), of $450.0 million aggregate principal amount of the 6.25% Senior Notes due 2024. The 6.25% Senior Notes are unsecured and were initially issued by the Escrow Issuer to the initial purchasers under an Indenture, dated as of August 4, 2016 (the “6.25% Senior Notes Indenture”), between the Escrow Issuer and U.S. Bank National Association, as trustee (the “6.25% Senior Notes Trustee”). The 6.25% Senior Notes mature on August 1, 2024. Interest on the 6.25% Senior Notes accrues at 6.25% per annum, paid every six months through maturity on each February 1 and August 1, beginning on February 1, 2017. The proceeds from the 6.25% Senior Notes were released from escrow on the September 7, 2016 The Elizabeth Arden Acquisition Date (the "Escrow Release"). On the Elizabeth Arden Acquisition Date, the Escrow Issuer was merged with and into Products Corporation and in connection with the Escrow Release, Products Corporation and certain of its direct and indirect wholly-owned domestic subsidiaries, including Elizabeth Arden and certain of its subsidiaries (collectively, the “6.25% Senior Notes Guarantors”), and the 6.25% Senior Notes Trustee entered into a supplemental indenture (the “6.25% Senior Notes Supplemental Indenture”) to the 6.25% Senior Notes Indenture, pursuant to which Products Corporation assumed the obligations of the Escrow Issuer under the 6.25% Senior Notes and the 6.25% Senior Notes Indenture and the 6.25% Senior Notes Guarantors jointly and severally, fully and unconditionally guaranteed the 6.25% Senior Notes on a senior unsecured basis (the "6.25% Senior Notes Guarantees"). The 6.25% Senior Notes Guarantors are the same entities that are subsidiary guarantors under the 2016 Senior Credit Facilities. In December 2016, Products Corporation consummated an offer to exchange the original 6.25% Senior Notes for $450 million of new 6.25% Senior Notes, which have substantially the same terms as the original 6.25% Senior Notes, except that they are registered under the Securities Act (such registered new notes being the “6.25% Senior Notes”). Ranking: The 6.25% Senior Notes are Products Corporation’s senior, unsubordinated and unsecured obligations, ranking: (i) pari passu in right of payment with all of Products Corporation’s existing and future senior unsecured indebtedness; (ii) senior in right of payment to all of Products Corporation’s and the 6.25% Senior Notes Guarantors’ future subordinated indebtedness; and (iii) effectively junior to all of Products Corporation’s and the 6.25% Senior Notes Guarantors’ existing and future senior secured indebtedness, including, indebtedness under Products Corporation’s 2016 Senior Credit Facilities, to the extent of the value of the assets securing such indebtedness. The 6.25% Senior Notes and the 6.25% Senior Notes Guarantees are: (i) structurally subordinated to all of the liabilities and preferred stock of any of the Company’s subsidiaries that do not guarantee the 6.25% Senior Notes; and (ii) pari passu in right of payment with liabilities of the 6.25% Senior Notes Guarantors other than expressly subordinated indebtedness. The 6.25% Senior Notes and the 6.25% Senior Notes Guarantees rank effectively junior to indebtedness and preferred stock of Products Corporation’s foreign and immaterial subsidiaries (the “6.25% Senior Notes Non-Guarantor Subsidiaries”), none of which guarantee the 6.25% Senior Notes. Optional Redemption: Prior to August 1, 2019, Products Corporation may redeem the 6.25% Senior Notes at its option, at any time as a whole or from time to time in part, upon Products Corporation’s payment of an applicable make-whole premium based on the comparable treasury rate plus 50 basis points. Prior to August 1, 2019, up to 40% of the aggregate principal amount of 6.25% Senior Notes that have been issued may also be redeemed at Products Corporation’s option at any time as a whole or from time to time in part, at a redemption price equal to 106.250% of the principal amount thereof, plus accrued and unpaid interest to (but not including) the date of redemption with the proceeds of certain equity offerings and capital contributions (so long as at least 60% of the 6.25% Senior Notes that have been issued thereafter remain outstanding). On and after August 1, 2019, Products Corporation may redeem the 6.25% Senior Notes at its option, at any time as a whole, or from time to time in part, at the following redemption prices (expressed as percentages of principal amount), plus accrued interest to (but not including) the date of redemption, if redeemed during the 12-month period beginning on August 1 of the years indicated below:
All redemptions (and notices thereof) may be subject to various conditions precedent, and redemption dates specified in such notices may be extended so that such conditions precedent may be fulfilled (to the extent redemption on such dates is otherwise permitted by the 6.25% Senior Notes Indenture). Change of Control: Upon the occurrence of specified change of control events, Products Corporation is required to make an offer to purchase all of the 6.25% Senior Notes at a purchase price of 101% of the outstanding principal amount of the 6.25% Senior Notes as of the date of any such repurchase, plus accrued and unpaid interest to (but not including) the date of repurchase. Certain Covenants: The 6.25% Senior Notes Indenture imposes certain limitations on Products Corporation’s and the 6.25% Senior Notes Guarantors’ ability, and the ability of certain other subsidiaries, to: (i) incur or guarantee additional indebtedness or issue preferred stock; (ii) pay dividends, make certain investments and make repayments on indebtedness that is subordinated in right of payment to the 6.25% Senior Notes and make other “restricted payments”; (iii) create liens on their assets to secure debt; (iv) enter into transactions with affiliates; (v) merge, consolidate or amalgamate with another company; (vi) transfer and sell assets; and (vii) permit restrictions on the payment of dividends by Products Corporation's subsidiaries. These covenants are subject to important qualifications and exceptions. The 6.25% Senior Notes Indenture also contains customary affirmative covenants and events of default. In addition, if during any period of time the 6.25% Senior Notes receive investment grade ratings from both Standard & Poor’s and Moody’s Investors Services, Inc. and no default or event of default has occurred and is continuing under the 6.25% Senior Notes Indenture, Products Corporation and its subsidiaries will not be subject to the covenants regarding limitations on debt, limitations on restricted payments, limitation on guarantees by restricted subsidiaries, limitation on transactions with affiliates, certain provisions of the successor company covenant, limitation on asset sales and limitation on dividends from restricted subsidiaries. During 2016, in connection with consummating the 6.25% Senior Notes Offering, the Company incurred approximately $11.3 million of fees and expenses, all of which were capitalized and are being amortized over the remaining term of the 6.25% Senior Notes using the effective interest method. (d) 5.75% Senior Notes On February 8, 2013, Products Corporation completed its offering (the "2013 Senior Notes Refinancing"), pursuant to an exemption from registration under the Securities Act, of $500.0 million aggregate principal amount of the 5.75% Senior Notes. The 5.75% Senior Notes are unsecured and were issued to investors at par. The 5.75% Senior Notes mature on February 15, 2021. Interest on the 5.75% Senior Notes accrues at 5.75% per annum, paid every six months on February 15th and August 15th. The 5.75% Senior Notes were issued pursuant to the 5.75% Senior Notes Indenture (the "5.75% Senior Notes Indenture" and together with the 6.25% Senior Notes Indenture, the "Senior Notes Indentures"), dated as of February 8, 2013 (the “5.75% Senior Notes Closing Date”), by and among Products Corporation, Products Corporation’s domestic subsidiaries (the “5.75% Senior Notes Guarantors”), which also currently guarantee Products Corporation’s 2016 Senior Credit Facilities and the 6.25% Senior Notes, and U.S. Bank National Association, as trustee (the "5.75% Senior Notes Trustee"). The 5.75% Senior Notes Guarantors issued guarantees (the “5.75% Senior Notes Guarantees”) of Products Corporation’s obligations under the 5.75% Senior Notes and the 5.75% Senior Notes Indenture on a joint and several, senior unsecured basis. In December 2013, Products Corporation consummated an offer to exchange the original 5.75% Senior Notes for $500 million of new 5.75% Senior Notes, which have substantially the same terms as the original 5.75% Senior Notes, except that they are registered under the Securities Act (such registered new notes being the “5.75% Senior Notes”). Products Corporation used a portion of the $491.2 million of net proceeds from the issuance of the 5.75% Senior Notes (net of underwriters' fees) to repay and redeem all of the $330.0 million outstanding aggregate principal amount of its 9.75% Senior Secured Notes, as well as to pay $8.6 million of accrued interest. Products Corporation incurred an aggregate of $19.4 million of fees for the applicable redemption and tender offer premiums, related fees and expenses in connection with redemption and repayment of the 9.75% Senior Secured Notes and other fees and expenses in connection with the issuance of the 5.75% Senior Notes. Products Corporation used a portion of the remaining proceeds from the issuance of the 5.75% Senior Notes, together with existing cash, to pay approximately $113.0 million of principal on its 2011 Term Loan in conjunction with the February 2013 Term Loan Amendments. Products Corporation used the remaining balance available from the issuance of the 5.75% Senior Notes for general corporate purposes, including, without limitation, debt reduction transactions, such as repaying a loan to Revlon at its maturity on October 8, 2013, which proceeds Revlon used to pay the liquidation preference of Revlon's then outstanding Series A Preferred Stock, in connection with its mandatory redemption on such date. Ranking The 5.75% Senior Notes are Products Corporation’s unsubordinated, unsecured obligations and rank senior in right of payment to any future subordinated obligations of Products Corporation and rank pari passu in right of payment with all existing and future senior debt of Products Corporation. Similarly, each 5.75% Senior Notes Guarantee is the relevant 5.75% Senior Notes Guarantor’s joint and several, unsubordinated and unsecured obligation, ranking senior in right of payment to any future subordinated obligations of such 5.75% Senior Notes Guarantor and ranking pari passu in right of payment with all existing and future senior debt of such 5.75% Senior Notes Guarantor. The 5.75% Senior Notes Guarantees were issued on a joint and several basis. The 5.75% Senior Notes and the 5.75% Senior Notes Guarantees rank effectively junior to Products Corporation’s 2016 Senior Credit Facilities, which are secured, as well as indebtedness and preferred stock of Products Corporation’s foreign and immaterial subsidiaries (the “5.75% Senior Notes Non-Guarantor Subsidiaries” and together with the 6.25% Senior Notes Non-Guarantor Subsidiaries, the "Non-Guarantor Subsidiaries"), none of which guarantee the 5.75% Senior Notes. Optional Redemption The 5.75% Senior Notes may be redeemed at Products Corporation's option, at any time as a whole, or from time to time in part, at the following redemption prices (expressed as percentages of principal amount), plus accrued interest to the date of redemption, if redeemed during the 12-month period beginning on February 15th of the years indicated below:
Change of Control Upon the occurrence of specified change of control events, Products Corporation is required to make an offer to purchase all of the 5.75% Senior Notes at a purchase price of 101% of the outstanding principal amount of the 5.75% Senior Notes as of the date of any such repurchase, plus accrued and unpaid interest to the date of repurchase. Certain Covenants The 5.75% Senior Notes Indenture limits Products Corporation’s and the 5.75% Senior Notes Guarantors’ ability, and the ability of certain other subsidiaries, to:
These covenants are subject to important qualifications and exceptions. The 5.75% Senior Notes Indenture also contains customary affirmative covenants and events of default. In addition, if during any period of time the 5.75% Senior Notes receive investment grade ratings from both Standard & Poor’s and Moody’s Investors Services, Inc. and no default or event of default has occurred and is continuing under the 5.75% Senior Notes Indenture, Products Corporation and its subsidiaries will not be subject to the covenants on Limitation on Debt, Limitation on Restricted Payments, Limitation on Asset Sales, Limitation on Dividends from Subsidiaries and certain provisions of the Successor Company covenant. Covenants Products Corporation was in compliance with all applicable covenants under the 2016 Senior Credit Facilities as of December 31, 2016. At December 31, 2016, the aggregate principal amounts outstanding under the 2016 Term Loan Facility and the 2016 Revolving Credit Facility were $1,795.5 million and nil, respectively, and availability under the $400.0 million 2016 Revolving Credit Facility, based upon the calculated borrowing base of $389.2 million less $10.4 million of outstanding undrawn letters of credit, net of any outstanding checks, was $378.8 million. Products Corporation was in compliance with all applicable covenants under its Senior Notes Indentures as of December 31, 2016. Spanish Government Loan In connection with the Colomer Acquisition, the Company acquired the Colomer Group's euro-denominated loan payable to the Spanish government (the "Spanish Government Loan"), which loan had $0.5 million aggregate principal amount outstanding as of December 31, 2016 (based on foreign exchange rates in effect as of such date). The Spanish Government Loan does not bear interest and is payable in 10 equal installments on June 30th of each year beginning in 2016 through 2025. Long-Term Debt Maturities The aggregate amounts of contractual long-term debt maturities at December 31, 2016 in the years 2017 through 2021 and thereafter are as follows:
(b) Amount is primarily comprised of the $500.0 million aggregate principal amount outstanding as of December 31, 2016 under the 5.75% Senior Notes, which mature on February 21, 2021, and the quarterly amortization payment described in (a) above. |
FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets and liabilities are required to be categorized into three levels of fair value based upon the assumptions used to price the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, generally would require significant management judgment. The three levels for categorizing the fair value measurement of assets and liabilities are as follows:
As of December 31, 2016, the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below:
As of December 31, 2015, the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below:
As of December 31, 2016, the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below:
As of December 31, 2015, the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below:
(a) As adjusted pursuant to ASU No. 2015-03. See Note 1, "Description of Business and Summary of Significant Accounting Policies" for more information. The fair value of the Company's long-term debt, including the current portion of long-term debt, is based on quoted market prices for similar issues and maturities. The carrying amounts of cash and cash equivalents, trade receivables, notes receivable, accounts payable and short-term borrowings approximate their respective fair values. |
FINANCIAL INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Products Corporation maintains standby and trade letters of credit for various corporate purposes under which Products Corporation is obligated, of which $10.4 million and $8.8 million (including amounts available under credit agreements in effect at that time) were maintained at December 31, 2016 and December 31, 2015, respectively. Included in these amounts are approximately $7.3 million and $7.5 million at December 31, 2016 and December 31, 2015, respectively, in standby letters of credit that support Products Corporation’s self-insurance programs. The estimated liability under such programs is accrued by Products Corporation. Derivative Financial Instruments The Company uses derivative financial instruments, primarily: (i) FX Contracts, intended for the purpose of managing foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates on the Company’s net cash flows; and (ii) interest rate hedging transactions, such as the 2013 Interest Rate Swap, intended for the purpose of managing interest rate risk associated with Products Corporation’s variable rate indebtedness. Foreign Currency Forward Exchange Contracts The FX Contracts are entered into primarily to hedge the anticipated net cash flows resulting from inventory purchases and intercompany payments denominated in currencies other than the local currencies of the Company’s foreign and domestic operations and generally have maturities of less than one year. The U.S. Dollar notional amount of the FX Contracts outstanding at December 31, 2016 and December 31, 2015 was $79.6 million and $76.3 million, respectively. Interest Rate Swap Transaction In November 2013, Products Corporation executed a forward-starting floating-to-fixed interest rate swap transaction that, at its inception, was based on a notional amount of $400 million in respect of indebtedness under the Old Acquisition Term Loan over a period of three years (the "2013 Interest Rate Swap"). The 2013 Interest Rate Swap initially had a floor of 1.00% that in December 2016 was amended to 0.75%. In connection with entering into the 2016 Term Loan Facility, the 2013 Interest Swap was carried over to apply to a notional amount of $400 million in respect of indebtedness under such loan for the remaining balance of the term of such swap. The Company initially designated the 2013 Interest Rate Swap as a cash flow hedge of the variability of the forecasted three-month LIBOR interest rate payments initially related to the $400 million notional amount under the Old Acquisition Term Loan over the three-year term of the 2013 Interest Rate Swap (and subsequently to the $400 million notional amount under the 2016 Term Loan Facility for the remaining balance of the term of such swap). Commencing in May 2015, Products Corporation receives from the counterparty a floating interest rate based on the higher of three-month U.S. Dollar LIBOR or the floor percentage in effect, while paying a fixed interest rate payment to the counterparty equal to 2.0709% (which, with respect to the 2016 Term Loan Facility, effectively fixes the interest rate on such notional amount at 5.5709% over the remaining balance of the three-year term of the 2013 Interest Rate Swap). At December 31, 2016 the fair value of the 2013 Interest Rate Swap was a liability of $4.7 million and the accumulated loss recorded in accumulated other comprehensive loss was $3.0 million net of tax. As a result of completely refinancing the Old Acquisition Term Loan with a portion of the proceeds from Product's Corporation's consummation of the 2016 Senior Credit Facilities and the 6.25% Senior Notes Offering in connection with consummating the Elizabeth Arden Acquisition, the critical terms of the 2013 Interest Rate Swap no longer match the terms of the underlying debt under the 2016 Term Loan Facility. At the refinancing date, which was the same as the September 7, 2016 Elizabeth Arden Acquisition Date (the "De-designation Date"), the 2013 Interest Rate Swap was determined to no longer be highly effective and the Company discontinued hedge accounting for the 2013 Interest Rate Swap. Following the de-designation of the 2013 Interest Rate Swap, changes in fair value are accounted for as a component of other non-operating expenses. Accumulated deferred losses of $6.3 million, or $3.9 million net of tax, at the De-designation Date that were previously recorded as a component of accumulated other comprehensive loss will be amortized into earnings over the remaining term of the 2013 Interest Rate Swap through its maturity. At December 31, 2016, $4.9 million, or $3.0 million net of tax, remains as a component of accumulated other comprehensive loss related to the 2013 Interest Rate Swap. See "Quantitative Information – Derivative Financial Instruments" below). The Company expects that $2.3 million of the net of tax deferred net losses related to the 2013 Interest Rate Swap will be amortized into earnings over the next 12 months. Credit Risk Exposure to credit risk in the event of nonperformance by any of the counterparties is limited to the gross fair value of the derivative instruments in asset positions, which totaled $2.3 million and $2.0 million as of December 31, 2016 and December 31, 2015, respectively. The Company attempts to minimize exposure to credit risk by generally entering into derivative contracts with counterparties that have investment-grade credit ratings and are major financial institutions. The Company also periodically monitors any changes in the credit ratings of its counterparties. Given the current credit standing of the Company's counterparties to its derivative instruments, the Company believes that the risk of loss under these derivative instruments arising from any non-performance by any of the counterparties is remote. Quantitative Information – Derivative Financial Instruments The effects of the Company’s derivative instruments on its Consolidated Financial Statements were as follows:
(i) The fair values of the 2013 Interest Rate Swap at December 31, 2016 and December 31, 2015 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at December 31, 2016 and December 31, 2015, respectively. (ii) The fair values of the FX Contracts at December 31, 2016 and December 31, 2015 were measured based on observable market transactions of spot and forward rates at December 31, 2016 and December 31, 2015, respectively. (b) Effects of Derivative Financial Instruments on the Consolidated Statements of Operations and Comprehensive (Loss)Income for each of 2016, 2015 and 2014:
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PENSION AND POST-RETIREMENT BENEFITS |
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Compensation and Retirement Disclosure [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 25%, and highly compensated participants to contribute up to 6%, 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 fifty cents for each dollar contributed up to the first 6% of eligible compensation. The Company made cash matching contributions to the Savings Plan of $2.6 million, $2.5 million and $2.4 million during each of 2016, 2015 and 2014, 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. 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 2016, the Company made discretionary profit sharing contributions to the Savings Plan and Excess Savings Plan of $5.0 million (of which $3.9 million was paid in 2016 and $1.1 million was paid in January 2017), or 3% of eligible compensation, which was credited on a quarterly basis. For 2015, the Company made discretionary profit sharing contributions to the Savings Plan and Excess Savings Plan of $4.8 million (of which $3.7 million was paid in 2015 and $1.1 million was paid in January 2016), or 3% of eligible compensation, which was credited on a quarterly basis. For 2014, the Company made discretionary profit sharing contributions to the Savings Plan and Excess Savings Plan of $4.0 million (of which $3.1 million was paid in 2014 and $0.9 million was paid in January 2015), or 3% of eligible compensation, which was credited on a quarterly basis. 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. Effective December 31, 2012, Products Corporation merged two of its U.S. qualified defined benefit pension plans; therefore, as of December 31, 2012, Products Corporation sponsors two U.S. qualified defined benefit pension plans. The Company also 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. In the fourth quarter of 2015, the Company offered certain former employees who had vested benefits in the Revlon Employees’ Retirement Plan the option of receiving the present value of the participant’s pension benefit in a one-time cash lump sum payment, an annuity form of benefit or the ability to maintain their deferred vested status in the pension plan. Based upon the participants' acceptance of that offer, $53.4 million was paid from the plan's assets in December 2015, with a corresponding decrease in the plan's benefit obligation. As a result of such program, the Company recorded a $20.7 million charge as a result of the pension lump sum settlement in the fourth quarter of 2015. This charge was included in cost of sales and SG&A expenses. Other 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 22, “Related Party Transactions - Transfer Agreements”). 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:
In respect of the Company's pension plans and other post-retirement benefit plans, amounts recognized in the Company’s Consolidated Balance Sheets at December 31, 2016 and 2015 consist of the following:
With respect to the above accrued expenses and other, the Company has recorded receivables from affiliates of $2.7 million and $3.0 million at December 31, 2016 and 2015, respectively, 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:
Net Periodic Benefit Cost: The components of net periodic benefit (income) costs for the Company's pension and the other post-retirement benefit plans are as follows:
For 2016, the Company recognized net periodic benefit income of $0.6 million, compared to net periodic benefit cost of $18.8 million in 2015, primarily due to the pension lump sum settlement charge recorded in the fourth quarter of 2015 which was not repeated in 2016, as well as the Company's adoption of the alternative approach to calculating the service and interest components of net periodic benefit cost for pension and other post-retirement benefits (the “full yield curve” approach) which was adopted by the Company at December 31, 2015. For 2015, the Company recognized net periodic benefit cost of $18.8 million, compared to net periodic benefit income of $5.4 million in 2014, primarily due to the pension lump sum settlement charge recorded in the fourth quarter of 2015 and higher amortization of actuarial losses. Net periodic benefit costs (income) are reflected in the Company's Consolidated Financial Statements as follows:
Amounts recognized in accumulated other comprehensive loss at December 31, 2016 in respect of the Company’s pension plans and other post-retirement plans, which have not yet been recognized as a component of net periodic benefit cost, are as follows:
The total actuarial losses and prior service costs in respect of the Company’s pension plans and other post-retirement plans included in accumulated other comprehensive loss at December 31, 2016 and expected to be recognized in net periodic benefit cost during the fiscal year ended December 31, 2017, is $9.0 million and $0.3 million, respectively. 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:
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:
Effective December 31, 2015, the Company adopted the “full yield curve” method as an alternative approach to calculating 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. Prior to December 31, 2015, the Company estimated the service and interest cost components utilizing a single weighted average discount rate derived from the yield curve used to measure the projected benefit obligation at the beginning of the period. The change does not affect the measurement of the Company's total projected benefit obligations, as the change in service and interest costs is exactly offset in the actuarial loss (gain) recognized for each year. The Company made this change to provide a more precise measurement of service and interest costs by improving the correlation between projected benefit cash flows to the corresponding spot yield curve rates. The change to the "full yield curve" method was accounted for as a change in accounting estimate that is inseparable from a change in accounting principle, and accordingly, was accounted for prospectively. 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 7.00% and 6.00% weighted average long-term rate of return on plan assets assumption during 2016 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 which 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 are as follows:
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, 2016 and 2015:
The Company determines the fair values of the Company’s U.S. and international pension plan assets as follows:
The fair values of the Company's U.S. and International pension plan assets at December 31, 2016 by asset category were as follows:
The fair values of the Company's U.S. and International pension plan assets at December 31, 2015 by asset category were as follows:
There were no transfers into Level 3 assets in the Company's U.S. and International pension plan's fair value hierarchy during 2016 or 2015. 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 2016, $7.3 million and $1.0 million were contributed to the Company’s pension plans and other post-retirement benefit plans, respectively. During 2017, the Company expects to contribute approximately $8 million in the aggregate to its pension and other post-retirement benefit plans. 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:
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STOCK COMPENSATION PLAN |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK COMPENSATION PLAN | STOCK COMPENSATION PLAN Revlon maintains the Fourth Amended and Restated Revlon, Inc. Stock Plan (the "Stock Plan"), which provides for awards of stock options, stock appreciation rights, restricted or unrestricted stock and restricted stock units to eligible employees and directors of Revlon and its affiliates, including Products Corporation. An aggregate of 6,565,000 shares are reserved for issuance as Awards under the Stock Plan, subject to the adjustment provisions of the Stock Plan. As of December 31, 2016, there were approximately 4.0 million shares remaining available under the Stock Plan for grant as stock options, stock appreciation rights, restricted or unrestricted stock and/or restricted stock units. In July 2014, the Stock Plan was amended to renew the Stock Plan for a 7-year renewal term expiring on April 14, 2021. Stock options: Non-qualified stock options granted under the Stock Plan are granted at prices that equal or exceed the fair market value of Class A Common Stock on the grant date and have a term of 7 years. Option grants generally vest over service periods that range from 1 year to 4 years. At December 31, 2016, 2015 and 2014, there were no options exercisable under the Stock Plan. There was no stock option activity for 2016 and 2015. A summary of stock option activity for 2014 is presented below:
Restricted stock awards and restricted stock units: The Stock Plan allows for awards of restricted stock and restricted stock units to employees and directors of Revlon and its affiliates, including Products Corporation. The restricted stock awards granted under the Stock Plan vest over service periods that generally range from 3 years to 5 years. The Company granted 32,082 and 93,458 shares of restricted stock to certain executives in February 2016 and November 2016, respectively, which vest over a 4-year and 3-year period, respectively, with the first tranche vesting in March 2016 and October 2017, respectively. The Company granted 75,551 and 145,084 shares of restricted stock to certain executives in February 2015 and December 2015, respectively, which vest over a 5-year and 4-year period, respectively, with the first tranche of such grants having vested in March 2016. In 2014, the Company granted 693,378 shares of restricted stock to certain executives that vest over a 5-year period, which vesting commenced in March 2015. Pursuant to the Company’s employment agreement with Mr. Fabian Garcia, the Company’s President and Chief Executive Officer, on April 15, 2017 (the “Garcia Grant Date”), Revlon will grant to Mr. Garcia 270,489 restricted shares of Revlon Class A Common Stock (the "Garcia Restricted Stock Grant"), being the number of shares equal to $10 million divided by the $36.97 NYSE closing price of Revlon Class A Common Stock on the April 15, 2016 commencement date of his employment (the “Garcia Effective Date”). One-fifth of the Garcia Restricted Stock Grant vests on the Garcia Grant Date, with the remaining four-fifths vesting ratably on each of the first 4 anniversaries of the Garcia Grant Date, so long as Mr. Garcia remains employed with the Company on each applicable vesting date, subject to certain earlier vesting provisions. In lieu of making the Garcia Restricted Stock Grant, Revlon’s Board of Directors may, at its election based on the occurrence of certain events impacting the price of Revlon's Class A Common Stock, choose to pay Mr. Garcia $3 million on each of the first 5 anniversaries of the Garcia Effective Date (the "Deferred Cash Award"), so long as Mr. Garcia remains employed with the Company on each applicable payment date, subject to certain earlier payment or vesting provisions. Pursuant to the Company’s employment agreement with Mr. Juan Figuereo, the Company’s Chief Financial Officer, on April 12, 2017 (the “Figuereo Grant Date”), Revlon will grant to Mr. Juan Figuereo 102,880 restricted shares of Revlon Class A Common Stock (the “Figuereo Restricted Stock Grant”), being the number of shares equal to $3,750,000 divided by the $36.45 NYSE closing price of Revlon Class A Common Stock on the April 12, 2016 commencement date of his employment (the “Figuereo Effective Date”). One-fifth of the Figuereo Restricted Stock Grant vests on the Figuereo Grant Date, with the remaining four-fifths vesting ratably on each of the first 4 anniversaries of the Figuereo Grant Date so long as Mr. Figuereo remains employed with the Company on each applicable vesting date, subject to certain earlier vesting provisions. In lieu of making the Figuereo Restricted Stock Grant, Revlon’s Board of Directors may, at its election based on the occurrence of certain events impacting the price of Revlon’s Class A Common Stock, choose to pay Mr. Figuereo $1,125,000 on each of the first 5 anniversaries of the Garcia Effective Date, so long as Mr. Figuereo remains employed with the Company on each applicable payment date, subject to certain earlier payment or vesting provisions. A summary of the restricted stock and restricted stock unit activity for each of 2016, 2015 and 2014 is presented in the following table:
The Company recognizes non-cash compensation expense related to restricted stock awards and restricted stock units under the Stock Plan using the straight-line method over the remaining service period. The Company recorded compensation expense related to restricted stock awards under the Stock Plan of $6.4 million, 5.1 million and $5.5 million during 2016, 2015 and 2014, respectively. The total fair value of restricted stock and restricted stock units that vested during 2016 and 2015 was $6.5 million and $5.0 million, respectively. The deferred stock-based compensation related to restricted stock awards was $21.8 million at December 31, 2016 and will be amortized ratably to compensation expense over a weighted average remaining vesting period of 3.0 years. |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES The Company's income before income taxes and the applicable provision for income taxes are as follows:
The Company classifies interest and penalties as a component of the provision for income taxes. The Company recognized in the Consolidated Statements of Operations and Comprehensive (Loss) Income an expense of $0.3 million in 2016 and a benefit of $1.0 million and $0.9 million during 2015 and 2014, respectively, in accrued interest and penalties. The Company has not provided for U.S. federal income taxes and foreign withholding taxes on $321.9 million of foreign subsidiaries' cumulative undistributed earnings as of December 31, 2016 because such earnings are intended to be indefinitely reinvested overseas. If these foreign earnings are repatriated to the U.S., or if the Company determines that such earnings will be remitted in a future period, additional tax provisions may be required. Due to the complexities in the tax laws and the assumptions that would have to be made, it is not practicable to estimate the amounts of income tax provisions that may be required on account of these foreign undistributed earnings. The actual tax on income before income taxes is reconciled to the applicable statutory federal income tax rate in the following table:
Deferred taxes are the result of temporary differences between the bases of assets and liabilities for financial reporting and income tax purposes. Deferred tax assets and liabilities at December 31, 2016 and 2015 were comprised of the following:
In assessing the recoverability of its deferred tax assets, management regularly considers whether for some portion or all of the deferred tax assets it is more likely than not that a benefit will not be realized for these assets. The ultimate realization of deferred tax assets is generally dependent upon the generation of future taxable income during the periods in which those temporary differences may become deductible. In assessing the need for a valuation allowance, management evaluates the available pertinent positive and negative evidence, such as the Company's history of earnings, the scheduled reversal of deferred tax assets and liabilities, projected earnings, and income and tax planning strategies. A valuation allowance has been provided for those deferred tax assets for which, in the opinion of the Company's management, it is more likely than not that a benefit will not be realized. At December 31, 2016, the deferred tax valuation allowance primarily represented amounts for foreign jurisdictions where, as of the end of 2016, the Company had a three-year cumulative loss, and for certain U.S. jurisdictions where the Company had tax loss carryforwards and other tax attributes which may expire prior to being utilized. The deferred tax valuation allowance increased by $34.3 million and decreased by $10.0 million during 2016 and 2015, respectively. The increase in the deferred tax valuation allowance during 2016 was primarily associated with deferred taxes added as a result of the Elizabeth Arden Acquisition, the majority of which were established through purchase accounting. The decrease in the deferred tax valuation allowance during 2015 was primarily due to an $18.4 million reduction of the Company's valuation allowance against certain deferred tax assets in the U.K., partially offset by additional valuation allowances on current period net operating losses incurred in certain jurisdictions. The UK valuation allowance reduction in 2015 was a result of the Company determining that it was more likely than not that a benefit would be received for U.K. deferred tax assets. This conclusion was reached after consideration of the available positive and negative evidence, with the most significant positive evidence being the recent history of earnings, improved earnings trends, expected taxable income in future periods, and no history of losses expiring unused. There was no significant negative evidence. As of December 31, 2016, the Company has tax loss carryforwards of approximately $491.3 million, of which $215.6 million are foreign and $275.7 million are domestic (federal). The losses expire in future years as follows: 2017- $0.2 million; 2018- $4.7 million; 2019- $16.6 million; 2020 and beyond- $302.1 million; and unlimited- $167.7 million. The Company could receive the benefit of such tax loss carryforwards only to the extent it has taxable income during the carryforward periods in the applicable tax jurisdictions. As of December 31, 2016, there were no consolidated federal net operating losses available from the MacAndrews & Forbes Group (as hereinafter defined) from periods prior to the March 25, 2004 deconsolidation (as described below). The Company has acquired entities which had carryforward balances for tax losses, tax credits and other tax attributes at the time of the acquisition. U.S. Federal and certain state and foreign jurisdictions impose limitations on the amount of these tax losses, tax credits and other carryforward balances that may be utilized after an acquisition. The Company has evaluated the impact of these limitations, and has established a valuation allowance to reduce the deferred tax assets to the amount that the Company expects will be realized. The Company remains subject to examination of its income tax returns in various jurisdictions, including, without limitation: Australia, Canada, South Africa, Spain and the U.S. (federal) for tax years ended December 31, 2012 and forward; and the U.K. for tax years ended December 31, 2013 and forward. Elizabeth Arden remains subject to examination of its income tax returns in various jurisdictions, including, without limitation: the U.S. (federal) for the tax years ended June 30, 2010 and forward; and Switzerland for tax years ended June 30, 2014 and forward. At December 31, 2016 and 2015, the Company had unrecognized tax benefits of $93.3 million and $65.0 million, respectively, including $10.6 million and $10.3 million, respectively, of accrued interest and penalties. Of the $93.3 million unrecognized tax benefits, $57.0 million would affect the Company's effective tax rate, if recognized, and the remaining $36.3 million would affect the Company's deferred tax accounts. A reconciliation of the beginning and ending amount of the unrecognized tax benefits is provided in the following table:
In addition, the Company believes that it is reasonably possible that its unrecognized tax benefits during 2017 will decrease by approximately $9.6 million due to the resolution of audits and the expiration of statutes of limitation. As a result of the closing of the 2004 Revlon Exchange Transactions (as hereinafter defined in Note 22, “Related Party Transactions - Tax Sharing Agreements”), as of March 25, 2004, Revlon, Products Corporation and their U.S. subsidiaries were no longer included in the affiliated group of which MacAndrews & Forbes was the common parent (the “MacAndrews & Forbes Group”) for federal income tax purposes. Revlon Holdings (as hereinafter defined in Note 22, “Related Party Transactions - Transfer Agreements”), Revlon, Products Corporation and certain of its subsidiaries, and MacAndrews & Forbes Incorporated entered into a tax sharing agreement (as subsequently amended and restated, the "MacAndrews & Forbes Tax Sharing Agreement"), for taxable periods beginning on or after January 1, 1992 through and including March 25, 2004, during which Revlon and Products Corporation or a subsidiary of Products Corporation was a member of the MacAndrews & Forbes Group. In these taxable periods, Revlon's and Products Corporation's federal taxable income and loss were included in such group's consolidated tax return filed by MacAndrews & Forbes Incorporated. During such period, Revlon and Products Corporation were also included in certain state and local tax returns of MacAndrews & Forbes Incorporated or its subsidiaries. Revlon and Products Corporation remain liable under the MacAndrews & Forbes Tax Sharing Agreement for all such taxable periods through and including March 25, 2004 for amounts determined to be due as a result of a redetermination arising from an audit or otherwise, equal to the taxes that Revlon or Products Corporation would otherwise have had to pay if it were to have filed separate federal, state or local income tax returns for such periods. Following the closing of the 2004 Revlon Exchange Transactions, Revlon became the parent of a new consolidated group for federal income tax purposes and Products Corporation's federal taxable income and loss are included in such group's consolidated tax returns. Accordingly, Revlon and Products Corporation entered into a tax sharing agreement (the "Revlon Tax Sharing Agreement") pursuant to which Products Corporation is required to pay to Revlon amounts equal to the taxes that Products Corporation would otherwise have had to pay if Products Corporation were to file separate federal, state or local income tax returns, limited to the amount, and payable only at such times, as Revlon will be required to make payments to the applicable taxing authorities. There were no federal tax payments or payments in lieu of taxes from Revlon to Revlon Holdings pursuant to the MacAndrews & Forbes Tax Sharing Agreement in 2016 or 2015 with respect to periods covered by the MacAndrews & Forbes Tax Sharing Agreement, and the Company expects that there will not be any such payments in 2017. During 2016, there were no federal tax payments from Products Corporation to Revlon pursuant to the Revlon Tax Sharing Agreement with respect to 2016 or 2015. During 2015, there were no federal tax payments from Products Corporation to Revlon pursuant to the Revlon Tax Sharing Agreement with respect to 2015. The Company expects that there will be no federal tax payments from Products Corporation to Revlon pursuant to the Revlon Tax Sharing Agreement during 2017 with respect to 2016. Pursuant to the asset transfer agreement referred to in Note 22, “Related Party Transactions - Transfer Agreements,” Products Corporation assumed all tax liabilities of Revlon Holdings other than (i) certain income tax liabilities arising prior to January 1, 1992 to the extent such liabilities exceeded the reserves on Revlon Holdings' books as of January 1, 1992 or were not of the nature reserved for and (ii) other tax liabilities to the extent such liabilities are related to the business and assets retained by Revlon Holdings. |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss as of December 31, 2016 are as follows:
As shown above, other comprehensive income includes changes in the fair value of the 2013 Interest Rate Swap. A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of December 31, 2016 are as follows:
A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of December 31, 2015 are as follows:
There were no amounts reclassified into earnings during 2014. |
SEGMENT DATA AND RELATED INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT DATA AND RELATED INFORMATION | SEGMENT DATA AND RELATED INFORMATION 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 Company's “Chief Executive Officer”) in deciding how to allocate resources and in assessing the Company's performance. As a result of the similarities in the procurement, manufacturing and distribution processes for the Company’s products, much of the information provided in the Consolidated Financial Statements, and provided in the segment table below, is similar to, or the same as, that reviewed on a regular basis by the Company's Chief Executive Officer. As of December 31, 2016, and since the Elizabeth Arden Acquisition Date, the Elizabeth Arden organization has continued to operate and be evaluated on a stand-alone basis. At December 31, 2016, the Company’s operations are organized into the following reportable segments:
The Company's management evaluates segment profit, which is defined as income from continuing operations before interest, taxes, depreciation, amortization, stock-based compensation expense, gains/losses on foreign currency fluctuations, gains/losses on the early extinguishment of debt and miscellaneous expenses, for each of the Company's reportable segments. Segment profit also excludes unallocated corporate expenses and the impact of certain items that are not directly attributable to the reportable segments' underlying operating performance, which includes the impacts of: (i) restructuring and related charges; (ii) acquisition and integration costs; (iii) deferred compensation related to the accounting for the CBB Acquisition; (iv) costs of sales resulting from a fair value adjustment to inventory acquired in acquisitions; (v) charges related to the Elizabeth Arden 2016 Business Transformation Program; (vi) costs of sales resulting from a fair value adjustment to inventory acquired in the Elizabeth Arden Acquisition; (vii) impairment charges; and (viii) pension lump sum settlement charges. Such items are shown below in the table reconciling segment profit to consolidated income from continuing operations before income taxes. Unallocated corporate expenses primarily include 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.” The Company's assets and liabilities 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 reportable segments is produced for the Company's Chief Executive Officer or included in these Consolidated Financial Statements. The following table is a comparative summary of the Company’s net sales and segment profit by reportable segment for each of 2016, 2015, and 2014. In the table below, certain prior period amounts have been reclassified to conform to the presentation for 2016.
As of December 31, 2016, after giving effect to the Elizabeth Arden Acquisition, the Company had operations established in 26 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. Walmart and its affiliates worldwide accounted for approximately 17%, 18% and 16% of the Company’s worldwide net sales in 2016, 2015 and 2014, respectively, and such sales are primarily included within the net sales of the Consumer segment.
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COMMITMENTS AND CONTINGENCIES |
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Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Products Corporation currently leases facilities for executive offices, warehousing, research and development and sales operations and leases various types of equipment under operating and capital lease agreements. Rental expense was $18.5 million, $18.6 million and $26.6 million for 2016, 2015 and 2014 and, respectively. Minimum rental commitments under all non-cancelable leases, including those pertaining to idled facilities, are presented in the following table:
The Company is involved in various routine legal proceedings incidental to the ordinary course of its business. The Company believes that the outcome of all pending legal proceedings in the aggregate is not reasonably likely to have a material adverse effect on the Company’s business, prospects, results of operations, financial condition and/or cash flows. As previously disclosed, following the announcement of the execution of the Elizabeth Arden Merger Agreement, several putative shareholder class action lawsuits and a derivative lawsuit were filed challenging the Merger. In addition to the complaints filed on behalf of plaintiffs Parker, Christiansen, Ross and Stein, on July 25, 2016, a lawsuit (Hutson v. Elizabeth Arden, Inc., et al., Case No. CACE-16-013566) (referred to as the “Hutson complaint”) was filed in the Seventeenth Judicial Circuit in and for Broward County, Florida (the “Court”) against Elizabeth Arden, the members of the board of directors of Elizabeth Arden, Revlon, Products Corporation and Acquisition Sub. In general, the Hutson complaint alleges that: (i) the members of Elizabeth Arden’s board of directors breached their fiduciary duties to Elizabeth Arden’s shareholders with respect to the Merger, by, among other things, approving the Merger pursuant to an unfair process and at an inadequate and unfair price; and (ii) Revlon, Products Corporation and Acquisition Sub aided and abetted the breaches of fiduciary duty by the members of Elizabeth Arden’s board. The plaintiff seeks relief similar to that sought in the Parker case. By Order dated August 4, 2016, all five cases were consolidated by the Court into a Consolidated Amended Class Action. Thereafter, on August 11, 2016 a Consolidated Amended Class Action Complaint was filed, seeking to enjoin defendants from consummating the Merger and/or from soliciting shareholder votes. To the extent that the Merger was consummated, the Consolidated Amended Class Action Complaint seeks to rescind the Merger or recover rescissory or other compensatory damages, along with costs and fees. The grounds for relief set forth in the Consolidated Amended Class Action Complaint in large part track those grounds as asserted in the five individual complaints, as previously disclosed. Class counsel advised that post consummation of the Merger they were going to file a Second Consolidated Amended Class Action Complaint. The Second Consolidated Amended Class Action Complaint (which superseded the Consolidated Amended Class Action Complaint) was ultimately filed on or about January 26, 2017. Like the Consolidated Amended Class Action complaint, the grounds for relief set forth in the Second Consolidated Amended Class Action Complaint in large part track those grounds as asserted in the five individual complaints. The Company believes the allegations contained in the Second Consolidated Amended Class Action Complaint are without merit and intends to vigorously defend against them. Additional lawsuits arising out of or relating to the Elizabeth Arden Merger Agreement or the Merger may be filed in the future. The Company believes that the outcome of all pending legal proceedings in the aggregate is not reasonably likely to have a material adverse effect on the Company’s business, prospects, results of operations, financial condition and/or cash flows. However, in light of the uncertainties involved in legal proceedings generally, the ultimate outcome of a particular matter could be material to the Company’s operating results for a particular period depending on, among other things, the size of the loss or the nature of the liability imposed and the level of the Company’s income for that particular period. |
RELATED PARTY TRANSACTIONS |
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Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS As of December 31, 2016, MacAndrews & Forbes beneficially owned approximately 77% of Revlon's Class A Common Stock representing approximately 77% of Revlon’s outstanding shares of voting capital stock. Revlon in turn directly owns all 5,260 outstanding shares of Products Corporation's common stock. As a result, MacAndrews & Forbes is able to elect the entire Board of Directors of Revlon and Products Corporation and control the vote on all matters submitted to a vote of Revlon's and Products Corporation's stockholders. MacAndrews & Forbes is wholly-owned by Ronald O. Perelman, Chairman of Revlon’s and Products Corporation's Board of Directors. Transfer Agreements In June 1992, Revlon and Products Corporation entered into an asset transfer agreement with Revlon Holdings LLC, a Delaware limited liability company and formerly a Delaware corporation known as Revlon Holdings Inc. ("Revlon Holdings"), and which is an affiliate and an indirect wholly-owned subsidiary of MacAndrews & Forbes, and certain of Revlon Holdings’ wholly-owned subsidiaries. Revlon and Products Corporation also entered into a real property asset transfer agreement with Revlon Holdings. Pursuant to such agreements, in June 1992, Revlon Holdings transferred certain assets to Products Corporation and Products Corporation assumed all of the liabilities of Revlon Holdings, other than certain specifically excluded assets and liabilities (the liabilities excluded are referred to as the "Excluded Liabilities"). Certain consumer products lines sold in demonstrator-assisted retailers considered not integral to the Company's business and that historically had not been profitable and certain other assets and liabilities were retained by Revlon Holdings. Revlon Holdings agreed to indemnify Revlon and Products Corporation against losses arising from the Excluded Liabilities, and Revlon and Products Corporation agreed to indemnify Revlon Holdings against losses arising from the liabilities assumed by Products Corporation. The amounts reimbursed by Revlon Holdings to Products Corporation for the Excluded Liabilities was $0.5 million, $0.3 million and $0.2 million for 2016, 2015 and 2014, respectively. A receivable balance of nil and $0.2 million from MacAndrews & Forbes was included within prepaid expenses and other in the Company’s Consolidated Balance Sheets for transactions subject to the Transfer Agreements, at December 31, 2016 and 2015, respectively. Reimbursement Agreements Revlon, Products Corporation and MacAndrews & Forbes Inc. (a wholly-owned subsidiary of MacAndrews & Forbes) have entered into reimbursement agreements (the "Reimbursement Agreements") pursuant to which: (i) MacAndrews & Forbes is obligated to provide (directly or through its affiliates) certain professional and administrative services, including, without limitation, employees, to the Company, and to purchase services from third party providers, such as insurance, legal, accounting and air transportation services, on behalf of the Company, to the extent requested by Products Corporation; and (ii) Products Corporation is obligated to provide certain professional and administrative services, including, without limitation, employees, to MacAndrews & Forbes and to purchase services from third party providers, such as insurance, legal and accounting services, on behalf of MacAndrews & Forbes, to the extent requested by MacAndrews & Forbes, provided that in each case the performance of such services does not cause an unreasonable burden to MacAndrews & Forbes or Products Corporation, as the case may be. The Company reimburses MacAndrews & Forbes for the allocable costs of the services that MacAndrews & Forbes purchases for or provides to the Company and for the reasonable out-of-pocket expenses that MacAndrews & Forbes incurs in connection with the provision of such services. MacAndrews & Forbes reimburses Products Corporation for the allocable costs of the services that Products Corporation purchases for or provides to MacAndrews & Forbes and for the reasonable out-of-pocket expenses incurred by Products Corporation in connection with the purchase or provision of such services. Each of the Company, on the one hand, and MacAndrews & Forbes, on the other, has agreed to indemnify the other party for losses arising out of the services provided by it under the Reimbursement Agreements, other than losses resulting from its willful misconduct or gross negligence. The Reimbursement Agreements may be terminated by either party on 90 days' notice. The Company does not intend to request services under the Reimbursement Agreements unless their costs would be at least as favorable to the Company as could be obtained from unaffiliated third parties. Revlon and the Company participate in MacAndrews & Forbes' directors and officers liability insurance program (the “D&O Insurance Program”), as well as its other insurance coverages, such as property damage, business interruption, liability and other coverages, which cover Revlon and the Company, as well as MacAndrews & Forbes and its subsidiaries. The limits of coverage for certain of the policies are available on an aggregate basis for losses to any or all of the participating companies and their respective directors and officers. The Company reimburses MacAndrews & Forbes from time to time for their allocable portion of the premiums for such coverage or the Company pays the insurers directly, which premiums the Company believes are more favorable than the premiums that the Company would pay were it to secure stand-alone coverage. Any amounts paid by the Company directly to MacAndrews & Forbes in respect of premiums are included in the amounts paid under the Reimbursement Agreements. The net activity related to services purchased under the Reimbursement Agreements during each 2016, 2015 and 2014 was $1.5 million, $2.1 million and $3.8 million, respectively, which primarily included partial payments made by the Company to MacAndrews & Forbes during the first quarter of 2016, 2015 and 2014 for premiums related to the Company's allocable portion of the 5-year renewal of the D&O Insurance Program for the period from January 31, 2012 through January 31, 2017 (which insurance coverage was renewed in January 2017 through January 2020). As of December 31, 2016 and December 31, 2015, a payable balance of $0.2 million and a receivable balance of $0.1 million, respectively, from MacAndrews & Forbes was included in the Company's Consolidated Balance Sheet for transactions subject to the Reimbursement Agreements. Tax Sharing Agreements As a result of a debt-for-equity exchange transaction completed in March 2004 (the “2004 Revlon Exchange Transactions”), as of March 25, 2004, Revlon, Products Corporation and their U.S. subsidiaries were no longer included in the MacAndrews & Forbes Group for U.S. federal income tax purposes. See Note 16, “Income Taxes,” for further discussion on these agreements and related transactions in 2016, 2015 and 2014. Other Pursuant to the terms of Mr. Delpani’s Transition and Separation Agreement and Release with Revlon and Products Corporation, dated March 1, 2016 (as amended on April 21, 2016), in April 2016, the Company (i) repurchased from Mr. Delpani 72,895 shares of Revlon Class A Common Stock (representing vested, formerly restricted shares that Revlon granted to Mr. Delpani) for an aggregate purchase price of $2.7 million, based on the $36.83 NYSE per share closing price of Revlon Class A Common Stock on April 20, 2016; and (ii) paid Mr. Delpani $1.6 million as consideration for canceling his 65,703 restricted shares of Revlon Class A Common Stock that were otherwise scheduled to vest on March 15, 2017. Mr. Delpani ceased employment with the Company on March 31, 2016 and ceased to serve as Director in June 2016. Certain of Products Corporation’s debt obligations, including the 2016 Credit Agreements and Products Corporation's Senior Notes, have been, and may in the future be, supported by, among other things, guarantees from all of Products Corporation's domestic subsidiaries (subject to certain limited exceptions) and, for the 2016 Credit Agreements, guarantees from Revlon. The obligations under such guarantees are secured by, among other things, all of the capital stock of Products Corporation and, its domestic subsidiaries (subject to certain limited exceptions) and 66% of the capital stock of Products Corporation's and its domestic subsidiaries' first-tier foreign subsidiaries. See Note 11, “Long Term Debt,” for a discussion of the terms of the 2016 Credit Agreements and Senior Notes. During 2016 and 2015, the Company engaged several companies in which MacAndrews & Forbes had a controlling interest to provide the Company with various ordinary course business services. These services included processing approximately $40.9 million and $32.9 million of coupon redemptions for the Company's retail customers for 2016 and 2015, respectively, for which the Company paid fees of approximately $0.4 million in both 2016 and 2015, and other similar advertising, coupon redemption and raw material supply services, for which the Company paid fees aggregating to less than $0.1 million in both 2016 and 2015. The Company believes that its engagement of each of these affiliates was on arm's length terms, taking into account each firm's expertise in its respective field, and that the fees paid were at least as favorable as those available from unaffiliated parties. |
QUARTERLY RESULTS OF OPERATIONS |
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Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) | QUARTERLY RESULTS OF OPERATIONS (UNAUDITED) The following is a summary of the Company’s unaudited quarterly results of operations for each of 2016 and 2015:
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GUARANTOR FINANCIAL INFORMATION |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GUARANTOR FINANCIAL INFORMATION | GUARANTOR FINANCIAL INFORMATION Products Corporation's 5.75% Senior Notes and 6.25% Senior Notes are fully and unconditionally guaranteed on a senior basis by the 5.75% Senior Notes Guarantors and the 6.25% Senior Notes Guarantors (together the "Guarantor Subsidiaries"). The following Condensed Consolidating Financial Statements present the financial information as of December 31, 2016 and December 31, 2015, and for the years ended December 31, 2016, 2015 and 2014 for (i) Products Corporation on a stand-alone basis, (ii) the Guarantor Subsidiaries on a stand-alone basis (iii) the subsidiaries of Products Corporation that do not guarantee Products Corporation's 5.75% Senior Notes and 6.25% Senior Notes (the "Non-Guarantor Subsidiaries") on a stand-alone basis; and (iv) Products Corporation, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis. The Condensed Consolidating Financial Statements are presented on the equity method, under which the investments in subsidiaries are recorded at cost and adjusted to the applicable share of the subsidiary's cumulative results of operations, capital contributions, distributions and other equity changes. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions.
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SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS |
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Valuation and Qualifying Accounts [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Valuation and Qualifying Accounts Disclosure | SCHEDULE II REVLON CONSUMER PRODUCTS CORPORATION AND SUBSIDIARIES VALUATION AND QUALIFYING ACCOUNTS Years Ended December 31, 2016, 2015 and 2014 (dollars in millions)
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DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Consolidation | The accompanying Consolidated Financial Statements include the Company's accounts after the elimination of all material intercompany balances and transactions. |
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Reclassifications | Certain prior year amounts have been reclassified to conform to the current year presentation. |
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Basis of Presentation | The preparation of the Company's Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles (“U.S. GAAP”) requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Consolidated Financial Statements include, but are not limited to, allowances for doubtful accounts, inventory valuation reserves, expected sales returns and allowances, trade support costs, certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of goodwill, intangible and long-lived assets, income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities, restructuring costs, certain estimates and assumptions used in the calculation of the net periodic benefit (income) costs and the projected benefit obligations for the Company’s pension and other post-retirement plans, including the expected long-term return on pension plan assets and the discount rate used to value the Company’s pension benefit obligations. |
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Discontinued Operations Presentation | As a result of the Company's decision on December 30, 2013 to exit its direct manufacturing, warehousing and sales business operations in mainland China within the Consumer segment, the Company has reported the results of its former China operations within (loss) income from discontinued operations, net of taxes in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income for all periods presented. See Note 4, "Discontinued Operations," for further discussion. |
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Cash and Cash Equivalents | Cash equivalents are primarily investments in high-quality, short-term money market instruments with original maturities of three months or less and are carried at cost, which approximates fair value. |
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Trade Receivables | Trade receivables represent payments due to the Company for previously recognized net sales, reduced by an allowance for doubtful accounts for balances which are estimated to be uncollectible at December 31, 2016 and 2015, respectively. The Company grants credit terms in the normal course of business to its customers. Trade credit is extended based upon periodically updated evaluations of each customer's ability to perform its payment obligations. The Company does not normally require collateral or other security to support credit sales. The allowance for doubtful accounts is determined based on historical experience and ongoing evaluations of the Company's receivables and evaluations of the risks of payment. The allowance for doubtful accounts is recorded against trade receivable balances when they are deemed uncollectible. Recoveries of trade receivables previously reserved are recorded in the consolidated statements of operations and comprehensive (loss) income when received. |
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Inventories | Inventories are stated at the lower of cost or market value. Cost is based on standard cost and production variances, which approximates actual cost on the first-in, first-out method. Cost components include direct materials, direct labor and direct overhead, as well as in-bound freight. The Company records adjustments to the value of inventory based upon its forecasted plans to sell products included in inventory, as well as planned product discontinuances. The physical condition (e.g., age and quality) of the inventories is also considered in establishing its valuation. These adjustments are estimates, which could vary significantly, either favorably or unfavorably, from the amounts that the Company may ultimately realize upon the disposition of inventories if future economic conditions, customer inventory levels, product discontinuances, sales return levels or competitive conditions differ from the Company's estimates and expectations. |
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Property, Plant and Equipment | Property, plant and equipment is recorded at cost and is depreciated on a straight-line basis over the estimated useful lives of such assets as follows: land improvements, 20 to 30 years; buildings and improvements, 5 to 50 years; machinery and equipment, 3 to 15 years; counters and trade fixtures, 3 to 5 years; office furniture and fixtures, 3 to 15 years; and capitalized software, 2 to 10 years. Leasehold improvements and building improvements are amortized over their estimated useful lives or the terms of the leases or remaining life of the original structure, respectively, whichever is shorter. Repairs and maintenance are charged to operations as incurred, and expenditures for additions and improvements are capitalized. Counters and trade fixtures are amortized over their estimated useful life of the in-store counter and display related assets. The estimated useful life may be subject to change based upon declines in net sales and/or changes in merchandising programs. See Note 7, “Property, Plant and Equipment," for further discussion. |
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Other Assets | Included in other assets are permanent wall displays amounting to $64.1 million and $65.6 million as of December 31, 2016 and 2015, respectively, which are amortized generally over a period of 1 to 3 years. In the event of product discontinuances, from time to time, the Company may accelerate the amortization of related permanent wall displays based on the estimated remaining useful life of the asset. Amortization expense for permanent wall displays was $47.8 million, $41.3 million and $42.5 million for 2016, 2015 and 2014, respectively. The Company capitalizes deferred financing costs related to the issuance of its revolving credit facilities, which costs were $6.0 million and $1.3 million as of December 31, 2016 and 2015, respectively, and amortizes such costs over the terms of the related debt instruments using the effective-interest method. |
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Impairment of Long-Lived Assets | Long-lived assets, such as property, plant and equipment, are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset or asset group may not be recoverable. If events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable, the Company estimates the undiscounted future cash flows (excluding interest) resulting from the use of the asset and its ultimate disposition. If the sum of the undiscounted cash flows (excluding interest) is less than the carrying value, the Company recognizes an impairment loss, measured as the amount by which the carrying value exceeds the fair value of the asset. |
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Goodwill | Goodwill represents the excess purchase price for businesses acquired over the fair value of net assets acquired. Goodwill is not amortized, but rather is reviewed annually for impairment at the reporting unit level using October 1st carrying values, or when there is evidence that events or changes in circumstances indicate that the Company’s carrying amount may not be recovered. For 2016, in assessing whether goodwill was impaired in connection with its annual impairment test performed during the fourth quarter using October 1, 2016 carrying values, the Company performed qualitative assessments to determine whether it would be necessary to perform the two-step process, as prescribed by Accounting Standards Codification ("ASC") 350, Intangibles - Goodwill and Other, to assess the Company's goodwill for indicators of impairment. In performing the qualitative assessments, the Company determined that for the Revlon, Almay and Other and Professional reporting units, it was more likely than not that the fair value of each of the Company's reporting units exceeded their carrying amounts. The Company determined it would utilize the two-step process to test the Global Color Brands ("GCB") and Other reporting units for impairment. In the first step of this test, the Company compared the fair values of the GCB and Other reporting units, determined based upon discounted estimated future cash flows, to the carrying amounts of each reporting unit, including goodwill. The fair value of the GCB reporting unit exceeded its carrying amount and therefore no further impairment testing was performed and no impairment loss was indicated. The carrying amount of the Other reporting unit exceeded its fair value and the goodwill of the reporting unit was considered potentially impaired. The Company performed step two of the goodwill impairment test for its Other reporting unit to measure the amount of such unit's impairment loss. |
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Intangible Assets, net | Intangible Assets, net, include trade names and trademarks, customer relationships, patents and internally developed intellectual property ("IP") and acquired licenses. Indefinite-lived intangible assets, consisting of certain trade names, are not amortized, but rather are tested for impairment annually during the fourth quarter using October 1, 2016 carrying values, similar to goodwill, and the Company recognizes an impairment if the carrying amount of its intangible assets exceeds its fair value. Intangible assets with finite useful lives are amortized over their respective estimated useful lives to their estimated residual values. The Company writes off the gross carrying amount and accumulated amortization for intangible assets in the year in which the asset becomes fully amortized. Finite-lived intangible assets are considered for impairment upon the occurrence of certain “triggering events” and the Company recognizes an impairment if the carrying amount of the long-lived asset group exceeds the Company's estimate of the asset group's undiscounted future cash flows. |
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Revenue Recognition and Sales Returns | The Company's policy is to recognize revenue when persuasive evidence of an arrangement exists, delivery has occurred, the sales price is fixed or determinable and collection is probable. The Company records revenue from the sale of its products when risk of loss and title to the products transfers to the customer. Net sales are comprised of gross revenues less expected product returns, trade discounts and customer allowances, which include costs associated with off-invoice mark-downs and other price reductions, as well as trade promotions and coupons. These incentive costs are recognized at the later of the date on which the Company recognizes the related revenue or the date on which the Company offers the incentive. The Company allows customers to return their unsold products if and when they meet certain Company-established criteria as set forth in the Company's trade terms. The Company regularly reviews and revises, when deemed necessary, its estimates of sales returns based primarily upon the historical rate of actual product returns, planned product discontinuances, new product launches and estimates of customer inventory and promotional sales. The Company records sales returns as a reduction to sales and cost of sales, and an increase to accrued liabilities and inventories. Returned products, which are recorded as inventories, are valued based upon the amount that the Company expects to realize upon their subsequent disposition. The physical condition and marketability of the returned products are the major factors considered by the Company in estimating their realizable value. Revenues derived from licensing arrangements, including any pre-payments, are recognized in the period in which they are earned, but not before the initial license term commences. |
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Cost of Sales | Cost of sales includes all of the costs to manufacture the Company's products. For products manufactured in the Company's own facilities, such costs include raw materials and supplies, direct labor and factory overhead. For products manufactured for the Company by third-party contractors, such cost represents the amounts invoiced by the contractors. Cost of sales also includes the cost of refurbishing products returned by customers that will be offered for resale and the cost of inventory write-downs associated with adjustments of held inventories to their net realizable value. These costs are reflected in the Company’s consolidated statements of operations and comprehensive (loss) income when the product is sold and net sales revenues are recognized or, in the case of inventory write-downs, when circumstances indicate that the carrying value of inventories is in excess of their recoverable value. Additionally, cost of sales reflects the costs associated with any free products included as sales and promotional incentives. These incentive costs are recognized on the later of the date that the Company recognizes the related revenue or the date on which the Company offers the incentive. |
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Selling, General and Administrative Expenses | Selling, general and administrative (“SG&A”) expenses include expenses to advertise the Company's products, such as television advertising production costs and air-time costs, print advertising costs, digital marketing costs, promotional displays and consumer promotions. SG&A expenses also include the amortization of permanent wall displays and finite-lived intangible assets, depreciation of certain fixed assets, distribution costs (such as freight and handling), non-manufacturing overhead (principally personnel and related expenses), selling and trade educations fees, insurance and professional service fees. |
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Advertising | Advertising within SG&A expenses includes television, print, digital marketing and other advertising production costs which are expensed the first time the advertising takes place. The costs of promotional displays are expensed in the period in which they are shipped to customers. Advertising expenses were $421.1 million, $368.7 million and $383.2 million for 2016, 2015 and 2014, respectively, and were included in SG&A expenses in the Company's Consolidated Statements of Operations and Comprehensive (Loss) Income. The Company also has various arrangements with customers pursuant to its trade terms to reimburse them for a portion of their advertising costs, which provide advertising benefits to the Company. Additionally, from time to time, the Company may pay fees to customers in order to expand or maintain shelf space for its products. The costs that the Company incurs for "cooperative" advertising programs, end cap placement, shelf placement costs, slotting fees and marketing development funds, if any, are expensed as incurred and are recorded as a reduction within net sales. |
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Distribution Costs | Costs associated with product distribution, such as freight and handling costs, are recorded within SG&A expenses when incurred. |
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Income Taxes | Income taxes are calculated using the asset and liability method. Under this method, the Company recognizes deferred tax assets and liabilities for the estimated future tax consequences attributable to differences between the financial statement carrying amounts of assets and liabilities and their respective tax bases, as well as for operating loss and tax credit carryforwards. The Company measures deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company recognizes the effect of a change in income tax rates on deferred tax assets and liabilities in income in the period that includes the enactment date. The Company records valuation allowances to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. The Company recognizes a tax position in its financial statements when it is more likely than not that the position will be sustained upon examination, based on the merits of such position. The Company recognizes liabilities for unrecognized tax positions in the U.S. and other tax jurisdictions based on an estimate of whether and the extent to which additional taxes will be due. If payment of these amounts is ultimately not required, the reversal of the liabilities would result in additional tax benefits recognized in the period in which the Company determines that the liabilities are no longer required. If the estimate of tax liabilities is ultimately less than the final assessment, this will result in a further charge to expense. The Company recognizes interest and penalties related to income tax matters in income tax expense. |
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Research and Development | Research and development expenditures are expensed as incurred and included within SG&A expenses. |
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Foreign Currency Translation | Assets and liabilities of foreign operations, whose functional currency is the local currency, are translated into U.S. Dollars at the rates of exchange in effect at the balance sheet date. Income and expense items are translated at the weighted average exchange rates prevailing during each period presented. Gains and losses resulting from foreign currency transactions are included in the results of operations. Gains and losses resulting from translation of financial statements of foreign subsidiaries and branches operating in non-hyperinflationary economies are recorded as a component of accumulated other comprehensive loss until either the sale or upon the complete or substantially complete liquidation by the Company of its investment in a foreign entity. To the extent that foreign subsidiaries and branches operate in hyperinflationary economies, non-monetary assets and liabilities are translated at historical rates and translation adjustments are included in the Company's results of operations. |
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Stock-Based Compensation | The Company recognizes stock-based compensation costs for its restricted stock, measured at the fair value of each award at the time of grant, as an expense over the period during which an employee is required to provide service. Upon the vesting of restricted stock, any resulting tax benefits are recognized in additional paid-in-capital. Any resulting tax deficiencies are recognized in the consolidated statements of operations and comprehensive (loss) income as tax expense to the extent that the tax deficiency amount exceeds any existing additional paid-in-capital resulting from previously realized excess tax benefits from previous awards. The Company reflects such excess tax benefits as cash flows from financing activities in the consolidated statements of cash flows. |
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Derivative Financial Instruments | The Company is exposed to certain risks relating to its ongoing business operations. The Company uses derivative financial instruments, including: (i) foreign currency forward exchange contracts (“FX Contracts”) intended for the purpose of managing foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates on the Company’s net cash flows; and (ii) interest rate hedging transactions intended for the purpose of managing interest rate risk associated with Products Corporation’s variable rate indebtedness. Foreign Currency Forward Exchange Contracts Products Corporation enters into FX Contracts primarily to hedge the anticipated net cash flows resulting from inventory purchases and intercompany payments denominated in currencies other than the local currencies of the Company’s foreign and domestic operations and generally have maturities of less than one year. The Company does not apply hedge accounting to its FX Contracts. The Company records FX Contracts in its consolidated balance sheet at fair value and immediately recognizes changes in fair value in earnings. Fair value of the Company’s FX Contracts is determined by using observable market transactions of spot and forward rates. See Note 13, “Financial Instruments,” for further discussion of the Company's FX Contracts. Interest Rate Swap As a result of the Company completing several debt transactions in connection with the Elizabeth Arden Acquisition, the critical terms of the 2013 Interest Rate Swap (as hereinafter defined) no longer matched the terms of the underlying debt and the 2013 Interest Rate Swap was determined to no longer be highly effective. Accordingly, the Company discontinued hedge accounting for the 2013 Interest Rate Swap during the third quarter of 2016. Following the de-designation of the 2013 Interest Rate Swap, changes in the fair value of the Interest Rate Swap are accounted for as a component of other non-operating expenses. Accumulated deferred losses on the 2013 Interest Rate Swap of $4.9 million, or $3.0 million net of tax, at December 31, 2016 that were previously recorded as a component of accumulated other comprehensive loss will be amortized into earnings over the remaining term of the 2013 Interest Rate Swap. See Note 13, “Financial Instruments,” for further discussion of the Company's 2013 Interest Rate Swap. Refer to Note 11, "Long-Term Debt," for further details related to financing the Elizabeth Arden Acquisition and related debt restructuring transactions. |
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Recently Adopted and Recently Issued Accounting Pronouncements | In November 2015, the FASB issued ASU No. 2015-17, "Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes," which requires deferred income tax assets and liabilities to be classified as noncurrent within a company's balance sheet. Under previous guidance, the Company was required to separate deferred income tax assets and liabilities into current and noncurrent amounts. Netting deferred tax assets and deferred tax liabilities by tax jurisdiction is still required under ASU 2015-17. The Company adopted ASU No. 2015-17 beginning on January 1, 2016 and the Company's previously recorded deferred tax assets were adjusted to reflect the adoption of ASU No. 2015-17. The adoption of ASU No. 2015-17 resulted in no adjustment to the Company’s results of operations and stockholders’ deficiency and had the following impact on the previously reported Consolidated Balance Sheet as of December 31, 2015 and the Consolidated Statements of Cash Flows for 2015 and 2014:
In September 2015, the FASB issued ASU No. 2015-16, "Business Combinations (Topic 805): Simplifying the Accounting for Measurement Period Adjustments," which eliminated the requirement for an acquirer in a business combination to account for measurement-period adjustments retrospectively. Instead, acquirers must recognize measurement-period adjustments during the period in which they determine such adjustments, including the effect on earnings of any amounts they would have recorded in previous periods if the accounting had been completed at the acquisition date. This guidance is effective for annual periods beginning after December 15, 2015, with early adoption permitted. The Company adopted ASU No. 2015-16 beginning on January 1, 2016 and the adoption of this new guidance did not have a material impact on the Company’s results of operations, financial condition and financial statement disclosures. In April 2015, the FASB issued ASU No. 2015-03, "Simplifying the Presentation of Debt Issuance Costs," which requires debt issuance costs to be presented in the financial statements as a deduction from the corresponding debt liability, consistent with the presentation of debt discounts. This guidance became effective for annual periods beginning after December 15, 2015, with early adoption permitted, and is applied retrospectively. The Company adopted ASU No. 2015-03 beginning on January 1, 2016 and the Company's previously recorded other assets and long-term debt were adjusted to reflect the adoption of ASU No. 2015-03. The adoption of ASU No. 2015-03 resulted in no adjustment to the Company’s results of operations, cash flows and stockholder's deficiency and had the following impact on the Company's previously reported Consolidated Balance Sheet as of December 31, 2015:
In August 2014, the FASB issued ASU No. 2014-15, "Disclosure of Uncertainties about an Entity's Ability to Continue as a Going Concern," that explicitly requires management to assess an entity's ability to continue as a going concern and to provide related footnote disclosures if conditions give rise to substantial doubt. According to ASU No. 2014-15, substantial doubt exists if it is probable that the entity will be unable to meet its obligations within one year after the financial statement's issuance date. The likelihood threshold of "probable," similar to its current use in U.S. GAAP for loss contingencies, is used to define substantial doubt. Disclosures are required under ASU No. 2014-15 if conditions give rise to substantial doubt, including whether and how management's plans will alleviate the substantial doubt. This guidance became effective for annual periods beginning after December 15, 2015, with early adoption prohibited. The Company adopted ASU No. 2014-15 beginning January 1, 2016 and the adoption of this new guidance did not have a material impact on the Company’s results of operations, financial condition and financial statement disclosures. Recently Issued Accounting Pronouncements In January 2017, the FASB issued ASU No. 2017-04, “Simplifying the Test for Goodwill Impairment,” which simplifies the annual goodwill impairment analysis test by eliminating Step 2 of the current two-step impairment test. Under this new guidance, an entity would continue to perform the first step of the annual impairment test by comparing the carrying amount of a reporting unit with its fair value. If the carrying value of the reporting unit exceeds the fair value of the reporting unit, the goodwill impairment charge would be equal to the amount of such difference. This guidance is effective for annual periods beginning after December 15, 2019, with early adoption permitted. The Company expects to adopt ASU No. 2017-04 beginning as of January 1, 2020 and is in the process of assessing the impact that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. In November 2016, the FASB issued ASU No. 2016-18, “Statement of Cash Flows (Topic 230): Restricted Cash,” which provides specific guidance on the presentation of changes in restricted cash and restricted cash equivalents on the statement of cash flows. Under this new standard, the changes in restricted cash and restricted cash equivalents will be required to be disclosed in reconciling the opening and closing balances on the statement of cash flows. This guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The Company expects to adopt ASU No. 2016-18 beginning as of January 1, 2018 and is in the process of assessing the impact that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. In August 2016, the FASB issued ASU No. 2016-15, “Classification of Certain Receipts and Cash Payments,” which aims to standardize how certain transactions are classified within the Statement of Cash Flows, including, among other issues, debt prepayment and extinguishment costs and contingent consideration payments made after a business combination. This guidance is effective for annual periods beginning after December 15, 2017, with early adoption permitted. The Company expects to adopt ASU No. 2016-15 beginning as of January 1, 2018 and is in the process of assessing the impact that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. In March 2016, the FASB issued ASU No. 2016-09, “Improvements to Employee Share-Based Payment Accounting,” which simplifies certain aspects of accounting for share-based payment transactions, including transactions in which an employee uses shares to satisfy the employer’s minimum statutory income tax withholding obligation, forfeitures and income taxes when awards vest or are settled. This guidance is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU No. 2016-09 beginning as of January 1, 2017 and expects that this new guidance will not have a material impact on the Company’s results of operations, financial condition and/or financial statement disclosures. In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)," which requires lessees to recognize a right-of-use asset and a liability on the balance sheet for all leases, with the exception of short-term leases. The lease liability will be equal to the present value of lease payments and the right-of-use asset will be based on the lease liability, subject to adjustment such as for initial direct costs. Leases will continue to be classified as either operating or finance leases in the income statement. This guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company expects to adopt ASU No. 2016-02 beginning as of January 1, 2019 and is in the process of assessing the impact that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. In July 2015, the FASB issued ASU No. 2015-11, "Inventory (Topic 330): Simplifying the Measurement of Inventory," which simplifies the subsequent measurement of inventories by requiring inventory to be measured at the lower of cost or net realizable value, rather than at the lower of cost or market. Net realizable value is defined as the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal and transportation. This guidance is effective for annual periods beginning after December 15, 2016, with early adoption permitted. The Company adopted ASU No. 2015-11 beginning as of January 1, 2017 and expects that this new guidance will not have a material impact on the Company’s results of operations, financial condition and/or financial statement disclosures. In May 2014, the FASB issued ASU No. 2014-09, “Revenue from Contracts with Customers”. This new standard will replace most existing revenue recognition guidance in U.S. GAAP when it becomes effective. The underlying principle of this new standard is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration for which the entity expects to be entitled in exchange for those goods or services. Entities may adopt this new standard either retrospectively for all periods presented in the financial statements (i.e., the full retrospective method) or as a cumulative-effect adjustment as of the date of adoption (i.e., the modified retrospective method), without applying to comparative years’ financial statements. In August 2015, the FASB issued ASU No. 2015-14, “Revenue from Contracts with Customers: Deferral of the Effective Date,” which allows for a deferral of the adoption date for ASU No. 2014-09 until January 1, 2018 and permits early adoption of ASU No. 2014-09, but not before the effective date of January 1, 2017. The Company plans to adopt ASU No. 2014-09 on January 1, 2018 and anticipates adopting this standard using the modified retrospective method. The Company is currently in the process of evaluating the impact that ASU No. 2014-09 will have on the Company’s results of operations, financial condition and financial statement disclosures. While the Company is continuing to assess all impacts of ASU No. 2014-09, it currently believes the most significant areas potentially impacted by this new standard relate to its accounting for customer incentives and cooperative advertising. The Company expects to complete its evaluation of the impact of adopting ASU No. 2014-09 in 2017 and will provide further updates in future periods. |
BUSINESS COMBINATIONS (Tables) |
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Elizabeth Arden [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Purchase Price | The components of the purchase price for the Elizabeth Arden Acquisition are as follows:
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Allocation of Consideration | The Company accounted for the Elizabeth Arden Acquisition as a business combination during the third quarter of 2016 and, accordingly, the total consideration of $1,034.3 million has been preliminary recorded based on the respective estimated fair values of the net assets acquired on the Elizabeth Arden Acquisition Date with resulting goodwill, as follows:
(a) As previously reported in Revlon's third quarter 2016 Form 10-Q. (b) The Measurement Period Adjustments to inventories during the three months ended December 31, 2016 relate to: (i) further evaluations of the inventory components at the Elizabeth Arden Acquisition Date, which resulted in a $16.6 million decrease in value of Elizabeth Arden's inventory on the Elizabeth Arden Acquisition Date; and (ii) a $2.6 million decrease in the step-up for the estimated fair value of Elizabeth Arden’s inventory, which was determined based upon the estimated selling price of the inventories less the remaining manufacturing and selling costs and normal profit margin on those manufacturing and selling efforts, based upon the adjusted acquisition date value. Following the Elizabeth Arden Acquisition, the step-up in fair value will increase cost of sales over approximately seven months, as the acquired inventory is sold. For 2016, the Company recognized a $20.7 million charge within cost of sales related to this step-up. (c) Deferred tax assets acquired in the Elizabeth Arden Acquisition primarily relate to approximately $107.3 million of tax loss carryforwards which the Company preliminarily estimates it will be able to realize in future periods, of which $0.5 million are foreign and $106.8 million are domestic (federal). |
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Acquired Intangible Assets | The intangible assets acquired in the Elizabeth Arden Acquisition based on the estimate of the fair values of the identifiable intangible assets are as follows:
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Pro Forma Results | The following table presents the Company's pro forma consolidated net sales and income from continuing operations, before income taxes for the years ended December 31, 2016 and 2015, respectively. The unaudited pro forma results include the historical consolidated statements of operations of the Company and Elizabeth Arden, giving effect to the Elizabeth Arden Acquisition and related financing transactions as if they had occurred at the beginning of the earliest period presented. As stated below, the Company also acquired certain international Cutex businesses, which primarily operate in Australia and the U.K., and related assets ("Cutex International"); however the Company has not included the Cutex International results prior to its acquisition date in these pro forma results as the impact would not have been material to the Company's financial results.
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Pro Forma Adjustments to Interest Expense | a pro forma increase in interest expense and amortization of debt issuance costs, related to financing the Elizabeth Arden Acquisition and related debt restructuring transactions as summarized in the following table. Refer to Note 11, "Long-Term Debt," for further details on financing the Elizabeth Arden Acquisition and related debt refinancing transactions.
(a) 2016 pro forma adjustments are for the period January 1, 2016 through the Elizabeth Arden Acquisition Date of September 7, 2016. |
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Cutex International [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Business Acquisition [Line Items] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allocation of Consideration | The table below summarizes the allocation of the total consideration of $29.1 million paid on the Cutex International Acquisition Date, as well as adjustments that have been made to the preliminary estimate of fair values during the third quarter of 2016:
(a) As previously reported in Revlon's second quarter 2016 Form 10-Q. (b) Purchased intangible assets include customer networks fair valued at $11.9 million and intellectual property fair valued at $0.8 million, which are amortized over useful lives of 15 and 10 years, respectively, and indefinite lived trade names fair valued at $4.5 million. |
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2015 acquisitions [Member] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Components of Purchase Price | The Company completed the following acquisitions during 2015:
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DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) |
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Impact of Adoption of New Accounting Pronouncements | The adoption of ASU No. 2015-03 resulted in no adjustment to the Company’s results of operations, cash flows and stockholder's deficiency and had the following impact on the Company's previously reported Consolidated Balance Sheet as of December 31, 2015:
The adoption of ASU No. 2015-17 resulted in no adjustment to the Company’s results of operations and stockholders’ deficiency and had the following impact on the previously reported Consolidated Balance Sheet as of December 31, 2015 and the Consolidated Statements of Cash Flows for 2015 and 2014:
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RESTRUCTURING CHARGES (Tables) |
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Charges | A summary of the restructuring and related charges incurred through December 31, 2016 in connection with the 2015 Efficiency Program is presented in the following table:
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Schedule of Liability Balance and Activity of Restructuring Programs | The related liability balance and activity for each of the Company's restructuring programs are presented in the following table:
(a) Includes $2.8 million in charges related to inventory adjustments and other restructuring related charges that are reflected within cost of sales and SG&A, respectively, in the Company’s 2016 Consolidated Statement of Operations and Comprehensive (Loss) Income. (b) 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. (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) Includes $2.6 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"). |
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Elizabeth Arden Integration Restructuring Actions [Member] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restructuring Cost and Reserve [Line Items] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Charges | A summary of the restructuring and related charges incurred through December 31, 2016 in connection with the EA Integration Restructuring Program is presented in the following table:
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DISCONTINUED OPERATIONS (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Discontinued Operations | The results of the China discontinued operations are included within Loss from discontinued operations, net of taxes, and relate entirely to the Consumer segment. The summary comparative financial results of discontinued operations are as follows:
(a) Net sales during 2014 include favorable adjustments to sales returns related to the Company's exit of its direct manufacturing, warehousing and sales business operations in mainland China within the Consumer segment. Assets and liabilities of the China discontinued operations included in the Consolidated Balance Sheets consist of the following:
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INVENTORIES (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Inventories |
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PREPAID EXPENSES AND OTHER (Tables) |
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Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Prepaid Expenses and Other |
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PROPERTY, PLANT AND EQUIPMENT (Tables) |
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Property, Plant and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Property, Plant and Equipment |
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GOODWILL AND INTANGIBLE ASSETS, NET (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Goodwill by Segment | The following table presents the changes in goodwill by segment during each of 2016 and 2015:
(a) The goodwill acquired during 2015 relates to: (i) $19.5 million of goodwill acquired in the CBB Acquisition, which was assigned to the Company's Other segment; and (ii) $1.9 million of goodwill acquired in the Cutex U.S. Acquisition. See Note 2, "Business Combinations," for further discussion of the Cutex U.S. and CBB acquisitions. (b) The goodwill acquired during 2016 relates to: (i) $221.7 million of goodwill acquired in the Elizabeth Arden Acquisition; and (ii) $17.4 million of goodwill acquired in the Cutex Acquisitions. See Note 2, "Business Combinations," for further discussion of the Elizabeth Arden Acquisition and Cutex International Acquisition. |
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Summary of Finite-Lived Intangible Assets | The following tables present details of the Company's total intangible assets:
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Summary of Indefinite-Lived Intangible Assets | The following tables present details of the Company's total intangible assets:
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Estimated Future Amortization Expense | The following table reflects the estimated future amortization expense, a portion of which is subject to exchange rate fluctuations, for the Company's finite-lived intangible assets as of December 31, 2016:
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ACCRUED EXPENSES AND OTHER (Tables) |
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accrued Expenses and Other |
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LONG-TERM DEBT (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Long-Term Debt |
(i) The Old Term Loan Facility, which was in place as of December 31, 2015, was comprised of: (i) the term loan due November 19, 2017 in the original aggregate amount of $675.0 million (the "2011 Term Loan"); and (ii) the term loan due October 8, 2019 in the original aggregate amount of $700.0 million (the "Old Acquisition Term Loan") which, respectively, had $651.4 million and $658.6 million in aggregate principal balance outstanding upon their complete refinancing on the September 7, 2016 Elizabeth Arden Acquisition Date (together, the "Old Term Loan Facility" and the "Old Term Loan Agreement," respectively). In connection with the Elizabeth Arden Acquisition and related financing transactions, the Old Term Loan Facility was completely refinanced and terminated on the Elizabeth Arden Acquisition Date. See below for 2016 debt-related transactions. (ii) At December 31, 2016, the Company classified $18.1 million as the current portion of long-term debt, comprised primarily of $18.0 million of amortization payments on the 2016 Term Loan Facility scheduled to be paid over the next four calendar quarters. At December 31, 2015, the Company classified $30.0 million as the current portion of long-term debt, which was comprised of (a) a $23.2 million required “excess cash flow” prepayment (as defined under the Old Term Loan Agreement, as hereinafter defined) that was paid on February 29, 2016, and (b) the Company’s regularly scheduled $1.7 million quarterly principal amortization payments under the Old Term Loan Facility due in 2016. |
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Debt Redemption Prices | The 5.75% Senior Notes may be redeemed at Products Corporation's option, at any time as a whole, or from time to time in part, at the following redemption prices (expressed as percentages of principal amount), plus accrued interest to the date of redemption, if redeemed during the 12-month period beginning on February 15th of the years indicated below:
On and after August 1, 2019, Products Corporation may redeem the 6.25% Senior Notes at its option, at any time as a whole, or from time to time in part, at the following redemption prices (expressed as percentages of principal amount), plus accrued interest to (but not including) the date of redemption, if redeemed during the 12-month period beginning on August 1 of the years indicated below:
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Long-Term Debt Maturities | The aggregate amounts of contractual long-term debt maturities at December 31, 2016 in the years 2017 through 2021 and thereafter are as follows:
(b) Amount is primarily comprised of the $500.0 million aggregate principal amount outstanding as of December 31, 2016 under the 5.75% Senior Notes, which mature on February 21, 2021, and the quarterly amortization payment described in (a) above. |
FAIR VALUE MEASUREMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Fair Values of Financial Assets and Liabilities | As of December 31, 2016, the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below:
As of December 31, 2015, the fair values of the Company’s financial assets and liabilities that are required to be measured at fair value are categorized in the table below:
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Financial Liabilities Not Measured At Fair Value But For Which Fair Value Disclosure Is Required | As of December 31, 2016, the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below:
As of December 31, 2015, the fair values and carrying values of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below:
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FINANCIAL INSTRUMENTS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Financial Instruments in Consolidated Balance Sheet | Fair Values of Derivative Financial Instruments in the Consolidated Balance Sheets:
(i) The fair values of the 2013 Interest Rate Swap at December 31, 2016 and December 31, 2015 were measured based on the implied forward rates from the U.S. Dollar three-month LIBOR yield curve at December 31, 2016 and December 31, 2015, respectively. (ii) The fair values of the FX Contracts at December 31, 2016 and December 31, 2015 were measured based on observable market transactions of spot and forward rates at December 31, 2016 and December 31, 2015, respectively. |
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Effects of Derivative Financial Instruments on Income and Other Comprehensive Income (Loss) | Effects of Derivative Financial Instruments on the Consolidated Statements of Operations and Comprehensive (Loss)Income for each of 2016, 2015 and 2014:
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PENSION AND POST-RETIREMENT BENEFITS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Compensation and Retirement Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Projected Benefit Obligations, Plan Assets, Funded Status and Amounts Recognized in the Consolidated Financial Statements | 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:
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Amounts Recognized in the Consolidated Balance Sheets | In respect of the Company's pension plans and other post-retirement benefit plans, amounts recognized in the Company’s Consolidated Balance Sheets at December 31, 2016 and 2015 consist of the following:
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Projected Benefit Obligation, Accumulated Benefit Obligation, and Fair Value of Plan Assets | The projected benefit obligation, accumulated benefit obligation, and fair value of plan assets for the Company's pension plans are as follows:
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Components of Net Periodic Benefit (Income) Costs | The components of net periodic benefit (income) costs for the Company's pension and the other post-retirement benefit plans are as follows:
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Classification of Net Periodic Benefit (Income) Costs | Net periodic benefit costs (income) are reflected in the Company's Consolidated Financial Statements as follows:
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Summary of Unrecognized Components of Net Periodic Benefit Cost | Amounts recognized in accumulated other comprehensive loss at December 31, 2016 in respect of the Company’s pension plans and other post-retirement plans, which have not yet been recognized as a component of net periodic benefit cost, are as follows:
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Assumptions Used | 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:
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:
The target ranges per asset class are as follows:
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Fair Value of 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, 2016 and 2015:
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Fair Values by Asset Categories | The fair values of the Company's U.S. and International pension plan assets at December 31, 2016 by asset category were as follows:
The fair values of the Company's U.S. and International pension plan assets at December 31, 2015 by asset category were as follows:
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Expected 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:
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STOCK COMPENSATION PLAN (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Option Activity | There was no stock option activity for 2016 and 2015. A summary of stock option activity for 2014 is presented below:
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Restricted Stock and Restricted Stock Unit Activity | A summary of the restricted stock and restricted stock unit activity for each of 2016, 2015 and 2014 is presented in the following table:
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INCOME TAXES (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Before Income Taxes and Provision for Income Taxes | The Company's income before income taxes and the applicable provision for income taxes are as follows:
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Reconciliation of Statutory Federal Income Tax Rate | The actual tax on income before income taxes is reconciled to the applicable statutory federal income tax rate in the following table:
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Deferred Tax Assets and Liabilities | Deferred tax assets and liabilities at December 31, 2016 and 2015 were comprised of the following:
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Reconciliation of Unrecognized Tax Benefits | A reconciliation of the beginning and ending amount of the unrecognized tax benefits is provided in the following table:
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss as of December 31, 2016 are as follows:
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Reclassification out of Accumulated Other Comprehensive Loss | A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of December 31, 2016 are as follows:
A rollforward of the amounts reclassified out of accumulated other comprehensive loss into earnings as of December 31, 2015 are as follows:
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SEGMENT DATA AND RELATED INFORMATION (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following table is a comparative summary of the Company’s net sales and segment profit by reportable segment for each of 2016, 2015, and 2014. In the table below, certain prior period amounts have been reclassified to conform to the presentation for 2016.
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Schedule of Net Sales and Long-Lived Assets by Geographic Area |
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Schedule of Net Sales by Classes of Similar Products |
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COMMITMENTS AND CONTINGENCIES (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Minimum rental commitments, capital leases | Minimum rental commitments under all non-cancelable leases, including those pertaining to idled facilities, are presented in the following table:
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Minimum rental commitments, operating leases | Minimum rental commitments under all non-cancelable leases, including those pertaining to idled facilities, are presented in the following table:
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QUARTERLY RESULTS OF OPERATIONS (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Quarterly Financial Information Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Unaudited Quarterly Results of Operations | The following is a summary of the Company’s unaudited quarterly results of operations for each of 2016 and 2015:
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GUARANTOR FINANCIAL INFORMATION (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Consolidating Balance Sheets |
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Condensed Income Statement and Statement of Comprehensive Income |
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Condensed Consolidating Statements of Cash Flows |
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BUSINESS COMBINATIONS - Purchase Price (Details) - Elizabeth Arden [Member] |
Sep. 07, 2016
USD ($)
$ / shares
shares
|
---|---|
Business Combination, Consideration Transferred [Abstract] | |
Purchase price of common stock | $ 431,500,000 |
Repurchase of preferred stock | 55,000,000 |
Payment of dividends payable at Elizabeth Arden Acquisition Date | 2,900,000 |
Total Purchase Price | $ 1,034,300,000 |
Share price (usd per share) | $ / shares | $ 14.00 |
Settlement of outstanding stock options and restricted share units | $ 11,100,000 |
Repurchase and retirement of preferred stock (in shares) | shares | 50,000 |
Par value of preferred stock repurchased and retired (usd per share) | $ / shares | $ 0.01 |
Repurchase and retirement of preferred stock, change in control premium | $ 5,000,000 |
Elizabeth Arden senior notes [Member] | |
Business Combination, Consideration Transferred [Abstract] | |
Repayment of debt | 350,000,000 |
Payment of accrued interest and call premium on Elizabeth Arden Existing Senior Notes | $ 27,400,000 |
Stated interest rate | 7.375% |
Repayment of accrued interest on debt | $ 12,300,000 |
Number of days of interest accrued on debt | 176 days |
Redemption price of debt | 103.69% |
Elizabeth Arden revolving credit facility [Member] | |
Business Combination, Consideration Transferred [Abstract] | |
Repayment of debt | $ 142,500,000 |
Repayment of principal amount of borrowings outstanding of acquiree | 142,000,000 |
Maximum borrowing capacity | 300,000,000.0 |
Elizabeth Arden Second lien credit facility [Member] | |
Business Combination, Consideration Transferred [Abstract] | |
Repayment of debt | $ 25,000,000 |
BUSINESS COMBINATIONS - Schedule of Net Assets Acquired (Details) - USD ($) $ in Millions |
1 Months Ended | 4 Months Ended | 7 Months Ended | 12 Months Ended | 48 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 07, 2016 |
May 31, 2016 |
Aug. 31, 2016 |
Oct. 31, 2015 |
Apr. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Apr. 21, 2019 |
Nov. 30, 2015 |
||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Goodwill | $ 689.5 | $ 689.5 | $ 689.5 | $ 469.7 | [1] | $ 464.1 | ||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Cost of sales | 917.1 | $ 667.8 | $ 668.3 | |||||||||||||
Tax loss carryforwards | 491.3 | 491.3 | $ 491.3 | |||||||||||||
Distribution rights [Member] | ||||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Weighted average remaining useful life | 18 years | 5 years | ||||||||||||||
Customer relationships [Member] | ||||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Weighted average remaining useful life | 14 years | 16 years | ||||||||||||||
Foreign [Member] | ||||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Tax loss carryforwards | 215.6 | 215.6 | $ 215.6 | |||||||||||||
Domestic [Member] | ||||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Tax loss carryforwards | 275.7 | 275.7 | 275.7 | |||||||||||||
Elizabeth Arden [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Cash | $ 41.1 | |||||||||||||||
Accounts Receivable | 132.6 | |||||||||||||||
Inventories | 323.3 | |||||||||||||||
Prepaid expenses and other current assets | 30.7 | |||||||||||||||
Property and equipment | 91.2 | |||||||||||||||
Deferred taxes, net | 68.7 | |||||||||||||||
Intangible assets | 336.8 | |||||||||||||||
Goodwill | 221.7 | |||||||||||||||
Other assets | 16.6 | |||||||||||||||
Total assets acquired | 1,262.7 | |||||||||||||||
Accounts payable | (116.0) | |||||||||||||||
Accrued expenses | (109.3) | |||||||||||||||
Other long-term liabilities | (3.1) | |||||||||||||||
Total liabilities acquired | (228.4) | |||||||||||||||
Total consideration transferred | $ 1,034.3 | |||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Inventory | (19.2) | |||||||||||||||
Intangible assets | 4.0 | |||||||||||||||
Goodwill | $ 19.7 | |||||||||||||||
Period for acquired inventory to be sold | 7 months | |||||||||||||||
Tax loss carryforwards | $ 107.3 | |||||||||||||||
Cash consideration | $ 1,034.3 | |||||||||||||||
Elizabeth Arden [Member] | Distribution rights [Member] | ||||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Weighted average remaining useful life | 18 years | |||||||||||||||
Elizabeth Arden [Member] | Customer relationships [Member] | ||||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Weighted average remaining useful life | 16 years | |||||||||||||||
Elizabeth Arden [Member] | Foreign [Member] | ||||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Tax loss carryforwards | $ 0.5 | |||||||||||||||
Elizabeth Arden [Member] | Domestic [Member] | ||||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Tax loss carryforwards | 106.8 | |||||||||||||||
Elizabeth Arden [Member] | Fair value adjustment to inventory [Member] | ||||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Inventory | 16.6 | |||||||||||||||
Cost of sales | $ 20.7 | |||||||||||||||
Elizabeth Arden [Member] | Previously reported [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Cash | 41.1 | |||||||||||||||
Accounts Receivable | 132.6 | |||||||||||||||
Inventories | 342.5 | |||||||||||||||
Prepaid expenses and other current assets | 30.7 | |||||||||||||||
Property and equipment | 91.2 | |||||||||||||||
Deferred taxes, net | 68.7 | |||||||||||||||
Intangible assets | 332.8 | |||||||||||||||
Goodwill | 202.0 | |||||||||||||||
Other assets | 21.1 | |||||||||||||||
Total assets acquired | 1,262.7 | |||||||||||||||
Accounts payable | (116.0) | |||||||||||||||
Accrued expenses | (109.3) | |||||||||||||||
Other long-term liabilities | (3.1) | |||||||||||||||
Total liabilities acquired | (228.4) | |||||||||||||||
Total consideration transferred | $ 1,034.3 | |||||||||||||||
Cutex International [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Inventories | $ 0.8 | |||||||||||||||
Intangible assets | 17.2 | |||||||||||||||
Goodwill | 11.1 | |||||||||||||||
Total consideration transferred | 29.1 | |||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Intangible assets | (2.5) | |||||||||||||||
Goodwill | 2.5 | |||||||||||||||
Adjustments to consideration transferred | $ 0.0 | |||||||||||||||
Cash consideration | 29.1 | |||||||||||||||
Cutex International [Member] | Trade names [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Intangible assets | 4.5 | |||||||||||||||
Cutex International [Member] | Customer relationships [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Intangible assets | $ 11.9 | |||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Weighted average remaining useful life | 15 years | |||||||||||||||
Cutex International [Member] | Intellectual property [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Intangible assets | $ 0.8 | |||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Weighted average remaining useful life | 10 years | |||||||||||||||
Cutex International [Member] | Previously reported [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Inventories | $ 0.8 | |||||||||||||||
Intangible assets | 19.7 | |||||||||||||||
Goodwill | 8.6 | |||||||||||||||
Total consideration transferred | $ 29.1 | |||||||||||||||
Cutex Brands, LLC [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Inventories | $ 1.0 | |||||||||||||||
Intangible assets | $ 5.2 | |||||||||||||||
Goodwill | 8.2 | |||||||||||||||
Total net assets acquired | 1.0 | |||||||||||||||
Total consideration transferred | $ 14.4 | |||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Goodwill | $ 6.3 | |||||||||||||||
Cutex Brands, LLC [Member] | Customer relationships [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Intangible assets | 1.6 | |||||||||||||||
Cutex Brands, LLC [Member] | Trade names [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Intangible assets | $ 3.6 | |||||||||||||||
CBBeauty Group [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Intangible assets | $ 12.1 | |||||||||||||||
Goodwill | 19.5 | |||||||||||||||
Total net assets acquired | 2.3 | |||||||||||||||
Total consideration transferred | 33.9 | |||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Cash consideration | $ 48.6 | |||||||||||||||
Percentage of cash consideration | 70.00% | |||||||||||||||
Cash consideration, initial payment | $ 33.9 | |||||||||||||||
Period of installments | 4 years | 3 years | ||||||||||||||
CBBeauty Group [Member] | Distribution rights [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Intangible assets | $ 3.5 | |||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Weighted average remaining useful life | 8 years | |||||||||||||||
CBBeauty Group [Member] | Customer relationships [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Intangible assets | $ 7.0 | |||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Weighted average remaining useful life | 14 years | |||||||||||||||
CBBeauty Group [Member] | Trade names [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Intangible assets | $ 1.6 | |||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Weighted average remaining useful life | 5 years | |||||||||||||||
CBBeauty Group [Member] | Forecast [Member] | ||||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Cash consideration, payable in installments | $ 14.0 | |||||||||||||||
American Crew and Revlon Professional Distribution Rights - Australia [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Intangible assets | $ 2.9 | |||||||||||||||
Goodwill | 0.0 | |||||||||||||||
Total net assets acquired | 1.4 | |||||||||||||||
Total consideration transferred | $ 4.4 | |||||||||||||||
Measurement Period Adjustments [Abstract] | ||||||||||||||||
Weighted average remaining useful life | 10 years | 10 years | ||||||||||||||
2015 acquisitions [Member] | ||||||||||||||||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net [Abstract] | ||||||||||||||||
Intangible assets | $ 20.2 | |||||||||||||||
Goodwill | 27.7 | |||||||||||||||
Total net assets acquired | 4.7 | |||||||||||||||
Total consideration transferred | $ 52.7 | |||||||||||||||
|
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Impact of Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||||
Deferred income taxes - noncurrent | $ 136.1 | $ 49.8 | [1] | ||||||
Other long-term liabilities | 89.8 | 70.8 | [1] | ||||||
Increase in prepaid expense and other current assets | (19.5) | (25.4) | [2] | $ (2.7) | [2] | ||||
Increase in accrued expenses and other current liabilities | 11.5 | 10.2 | [2] | (21.6) | [2] | ||||
Increase in other, net | 4.3 | (0.6) | [2] | 8.4 | [2] | ||||
Long-Term Debt | 2,663.1 | 1,783.7 | [1] | ||||||
Other Assets | $ 103.1 | 84.1 | [1] | ||||||
Accounting Standards Update 2015-17 [Member] | |||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||||
Deferred income taxes - current | 0.0 | ||||||||
Deferred income taxes - noncurrent | 49.8 | ||||||||
Other long-term liabilities | 70.8 | ||||||||
Increase in prepaid expense and other current assets | (25.4) | (2.7) | |||||||
Increase in accrued expenses and other current liabilities | 10.2 | (21.6) | |||||||
Increase in other, net | (0.6) | 8.4 | |||||||
Accounting Standards Update 2015-03 [Member] | |||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||||
Long-Term Debt | 1,783.7 | ||||||||
Other Assets | 84.1 | ||||||||
Previously reported [Member] | Accounting Standards Update 2015-17 [Member] | |||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||||
Deferred income taxes - current | 58.0 | ||||||||
Deferred income taxes - noncurrent | 38.5 | ||||||||
Other long-term liabilities | 117.5 | ||||||||
Increase in prepaid expense and other current assets | (32.6) | 4.5 | |||||||
Increase in accrued expenses and other current liabilities | 10.2 | (21.5) | |||||||
Increase in other, net | 6.6 | 1.1 | |||||||
Previously reported [Member] | Accounting Standards Update 2015-03 [Member] | |||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||||
Long-Term Debt | 1,803.7 | ||||||||
Other Assets | 104.1 | ||||||||
Restatement Adjustment [Member] | Accounting Standards Update 2015-17 [Member] | |||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||||
Deferred income taxes - current | (58.0) | ||||||||
Deferred income taxes - noncurrent | 11.3 | ||||||||
Other long-term liabilities | (46.7) | ||||||||
Increase in prepaid expense and other current assets | 7.2 | (7.2) | |||||||
Increase in accrued expenses and other current liabilities | 0.0 | (0.1) | |||||||
Increase in other, net | (7.2) | $ 7.3 | |||||||
Restatement Adjustment [Member] | Accounting Standards Update 2015-03 [Member] | |||||||||
New Accounting Pronouncement, Early Adoption [Line Items] | |||||||||
Long-Term Debt | (20.0) | ||||||||
Other Assets | $ (20.0) | ||||||||
|
BUSINESS COMBINATIONS - Acquired Intangible Assets (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Sep. 07, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Trademarks [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived acquired intangible assets, remaining useful life | 13 years | 15 years | |
Customer relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived acquired intangible assets, remaining useful life | 14 years | 16 years | |
Distribution rights [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived acquired intangible assets, remaining useful life | 18 years | 5 years | |
Elizabeth Arden [Member] | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Total acquired intangible assets | $ 336.8 | ||
Elizabeth Arden [Member] | Technology [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived acquired intangible assets | $ 2.5 | ||
Finite-lived acquired intangible assets, remaining useful life | 10 years | ||
Elizabeth Arden [Member] | Trademarks [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived acquired intangible assets | $ 15.0 | ||
Finite-lived acquired intangible assets, remaining useful life | 15 years | ||
Elizabeth Arden [Member] | Customer relationships [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived acquired intangible assets | $ 123.0 | ||
Finite-lived acquired intangible assets, remaining useful life | 16 years | ||
Elizabeth Arden [Member] | Licensing agreements [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived acquired intangible assets | $ 22.0 | ||
Finite-lived acquired intangible assets, remaining useful life | 19 years | ||
Elizabeth Arden [Member] | Distribution rights [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived acquired intangible assets | $ 31.0 | ||
Finite-lived acquired intangible assets, remaining useful life | 18 years | ||
Elizabeth Arden [Member] | Favorable lease commitments [Member] | |||
Acquired Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived acquired intangible assets | $ 1.3 | ||
Finite-lived acquired intangible assets, remaining useful life | 3 years | ||
Elizabeth Arden [Member] | Trademarks [Member] | |||
Acquired Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived acquired intangible assets | $ 142.0 |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Detail) |
3 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 07, 2016
USD ($)
|
Dec. 31, 2016
USD ($)
$ / shares
shares
|
Dec. 31, 2015
USD ($)
shares
|
Dec. 31, 2016
USD ($)
segment
$ / shares
shares
|
Dec. 31, 2015
USD ($)
reporting_unit
shares
|
Dec. 31, 2014
USD ($)
|
||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Number of reporting segments | segment | 4 | ||||||||||||
Cash equivalents | $ 2,500,000 | $ 1,600,000 | $ 2,500,000 | $ 1,600,000 | |||||||||
Outstanding checks | 19,300,000 | 19,500,000 | 19,300,000 | 19,500,000 | |||||||||
Property, plant and equipment, net | 320,500,000 | 215,300,000 | [1] | 320,500,000 | 215,300,000 | [1] | |||||||
Amortization expense | 123,200,000 | 103,200,000 | [2] | $ 102,600,000 | [2] | ||||||||
Net deferred financing costs | 6,000,000 | $ 1,300,000 | 6,000,000 | 1,300,000 | |||||||||
Goodwill impairment charge | 16,700,000 | $ 9,700,000 | 0 | ||||||||||
Number of reporting units | reporting_unit | 4 | ||||||||||||
Impairment of intangible assets | $ 6,700,000 | $ 0 | 0 | ||||||||||
Advertising expenses | 421,100,000 | 368,700,000 | 383,200,000 | ||||||||||
Distribution costs | 98,400,000 | 80,200,000 | 84,900,000 | ||||||||||
Research and development expenditures | $ 37,000,000 | $ 31,200,000 | 31,600,000 | ||||||||||
Preferred stock, authorized (shares) | shares | 1,000 | 1,000 | 1,000 | 1,000 | |||||||||
Preferred stock, outstanding (shares) | shares | 546 | 546 | |||||||||||
Preferred stock, liquidation preference (usd per share) | $ / shares | $ 100,000 | $ 100,000 | |||||||||||
Preferred stock, redemption price (usd per share) | $ / shares | $ 100,000 | $ 100,000 | |||||||||||
Interest rate swap [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Discontinuation of cash flow hedge, accumulated deferred losses to be reclassified to earnings over remaining term | $ (6,300,000) | $ 4,900,000 | |||||||||||
Discontinuation of cash flow hedge, accumulated deferred losses after tax to be reclassified to earnings over remaining term | $ (3,900,000) | $ 3,000,000 | |||||||||||
Land improvements [Member] | Minimum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment - useful life | 20 years | ||||||||||||
Land improvements [Member] | Maximum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment - useful life | 30 years | ||||||||||||
Buildings and improvements [Member] | Minimum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment - useful life | 5 years | ||||||||||||
Buildings and improvements [Member] | Maximum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment - useful life | 50 years | ||||||||||||
Machinery and equipment [Member] | Minimum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment - useful life | 3 years | ||||||||||||
Machinery and equipment [Member] | Maximum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment - useful life | 15 years | ||||||||||||
Counters and trade fixtures [Member] | Minimum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment - useful life | 3 years | ||||||||||||
Counters and trade fixtures [Member] | Maximum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment - useful life | 5 years | ||||||||||||
Office furniture and fixtures [Member] | Minimum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment - useful life | 3 years | ||||||||||||
Office furniture and fixtures [Member] | Maximum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment - useful life | 15 years | ||||||||||||
Capitalized software [Member] | Minimum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment - useful life | 2 years | ||||||||||||
Capitalized software [Member] | Maximum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment - useful life | 10 years | ||||||||||||
Wall displays [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment, net | $ 64,100,000 | $ 65,600,000 | $ 64,100,000 | $ 65,600,000 | |||||||||
Amortization expense | $ 47,800,000 | $ 41,300,000 | $ 42,500,000 | ||||||||||
Wall displays [Member] | Minimum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment - useful life | 1 year | ||||||||||||
Wall displays [Member] | Maximum [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Property, plant and equipment - useful life | 3 years | ||||||||||||
Trade receivables [Member] | Customer concentration risk [Member] | Three largest customers [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Concentration risk percentage | 27.00% | ||||||||||||
Other reporting unit [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Goodwill impairment charge | $ 16,700,000 | ||||||||||||
Global Color Brands reporting unit [Member] | |||||||||||||
Basis Of Presentation And Summary Of Significant Accounting Policies [Line Items] | |||||||||||||
Goodwill impairment charge | $ 9,700,000 | ||||||||||||
|
BUSINESS COMBINATIONS - Pro Forma Results (Details) - Elizabeth Arden [Member] - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Business Acquisition [Line Items] | ||
Net sales | $ 2,858.9 | $ 2,863.5 |
Income (loss) from continuing operations, before income taxes | $ (6.7) | $ (65.6) |
BUSINESS COMBINATIONS - Pro Forma Adjustments (Details) - USD ($) $ in Millions |
3 Months Ended | 4 Months Ended | 12 Months Ended | |||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 07, 2016 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
[1] | Aug. 04, 2016 |
||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Net (loss) income | $ (34.8) | $ (3.2) | $ 9.3 | $ 13.0 | $ 26.3 | $ 7.7 | $ 27.5 | $ 0.6 | $ (15.7) | $ 62.1 | [1] | $ 47.3 | ||||||
Elizabeth Arden [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Inventory step-up in fair value | $ (19.2) | |||||||||||||||||
Elizabeth Arden [Member] | Fair value adjustment to inventory [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Inventory step-up in fair value | $ 16.6 | |||||||||||||||||
Elizabeth Arden [Member] | Cost of sales adjustment [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Net (loss) income | 20.7 | |||||||||||||||||
Elizabeth Arden [Member] | Depreciation and amortization expense adjustment, property and equipment [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Net (loss) income | (0.5) | 6.1 | ||||||||||||||||
Elizabeth Arden [Member] | Depreciation and amortization expense adjustment, intangible assets [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Net (loss) income | (0.8) | 0.4 | ||||||||||||||||
Elizabeth Arden [Member] | Acquisition cost adjustment [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Net (loss) income | 68.0 | |||||||||||||||||
Elizabeth Arden [Member] | Interest expense on new debt [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Net (loss) income | (105.3) | (106.4) | ||||||||||||||||
Elizabeth Arden [Member] | Reversal of acquiree's interest expense [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Net (loss) income | 18.2 | 26.2 | ||||||||||||||||
Elizabeth Arden [Member] | Reversal of acquirer's interest expense [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Net (loss) income | 76.1 | 50.9 | ||||||||||||||||
Elizabeth Arden [Member] | Interest expense adjustment [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Net (loss) income | (11.0) | (29.3) | ||||||||||||||||
Elizabeth Arden [Member] | Amortization of debt issuance costs on new debt [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Net (loss) income | (6.1) | (8.1) | ||||||||||||||||
Elizabeth Arden [Member] | Reversal of acquirer's amortization of debt issuance costs [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Net (loss) income | 3.3 | 4.4 | ||||||||||||||||
Elizabeth Arden [Member] | Reversal of acquiree's amortization of debt issuance costs [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Net (loss) income | 1.3 | 1.5 | ||||||||||||||||
Elizabeth Arden [Member] | Amortization of debt issuance costs adjustment [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Net (loss) income | $ (1.5) | $ (2.2) | ||||||||||||||||
6.25% Senior Notes [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Stated interest rate | 6.25% | 6.25% | 6.25% | |||||||||||||||
6.25% Senior Notes [Member] | Revlon Consumer Products Corporation [Member] | ||||||||||||||||||
Business Acquisition, Pro Forma Information, Nonrecurring Adjustment [Line Items] | ||||||||||||||||||
Stated interest rate | 6.25% | |||||||||||||||||
|
BUSINESS COMBINATIONS - Additional Information (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 07, 2016 |
May 31, 2016 |
Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Aug. 04, 2016 |
||||
Business Acquisition [Line Items] | ||||||||||
Acquisition and integration costs | $ 33,500,000 | $ 43,200,000 | $ 8,000,000 | $ 6,400,000 | ||||||
Deferred tax liability, intangible assets | 132,400,000 | 82,400,000 | ||||||||
Goodwill | $ 689,500,000 | $ 469,700,000 | [1] | $ 464,100,000 | ||||||
6.25% Senior Notes [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Stated interest rate | 6.25% | |||||||||
Revlon Consumer Products Corporation [Member] | 2016 Term Loan [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt term | 7 years | |||||||||
Maximum borrowing capacity | $ 1,800,000,000.0 | |||||||||
Revlon Consumer Products Corporation [Member] | 2016 Revolving Credit Facility [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Debt term | 5 years | |||||||||
Proceeds from lines of credit | $ 35,000,000 | |||||||||
Revlon Consumer Products Corporation [Member] | 6.25% Senior Notes [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Aggregate principal amount | $ 450,000,000 | |||||||||
Stated interest rate | 6.25% | |||||||||
Revolving credit facility [Member] | Revlon Consumer Products Corporation [Member] | 2016 Revolving Credit Facility [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Maximum borrowing capacity | 400,000,000.0 | |||||||||
Elizabeth Arden [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration | 1,034,300,000 | |||||||||
Acquisition and integration costs | $ 40,700,000 | |||||||||
Acquisition costs | 19,300,000 | |||||||||
Integration costs | $ 21,400,000 | |||||||||
Trade receivables, fair value | 132,600,000 | |||||||||
Trade receivables, gross amount | 165,000,000 | |||||||||
Trade receivables, uncollectible | 32,400,000 | |||||||||
Deferred tax liability, intangible assets | 60,200,000 | |||||||||
Total acquired intangible assets | 336,800,000 | |||||||||
Total acquired intangible assets, tax basis | 148,600,000 | |||||||||
Goodwill | 221,700,000 | |||||||||
Elizabeth Arden [Member] | Revlon Consumer Products Corporation [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Acquisition, consideration transferred, cash on hand | $ 126,700,000 | |||||||||
Cutex International [Member] | ||||||||||
Business Acquisition [Line Items] | ||||||||||
Cash consideration | $ 29,100,000 | |||||||||
Total acquired intangible assets | 17,200,000 | |||||||||
Goodwill | $ 11,100,000 | |||||||||
Coty license agreement term | 20 years | |||||||||
|
RESTRUCTURING CHARGES - Restructuring and Related Charges (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | $ 34.0 | $ 10.5 | $ 21.3 | |
Restructuring and related charges | 39.4 | 10.5 | ||
Elizabeth Arden Integration Restructuring Actions [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 31.7 | |||
Inventory adjustments | 0.5 | |||
Other related charges | 2.3 | |||
Restructuring and related charges | 34.5 | |||
Elizabeth Arden Integration Restructuring Actions [Member] | Employee Severance and Other Personnel Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 31.5 | |||
Restructuring and related charges | 31.5 | |||
Elizabeth Arden Integration Restructuring Actions [Member] | Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 0.2 | |||
Restructuring and related charges | 3.0 | |||
Total expected charges | 10.0 | |||
2015 Efficiency Program [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | $ 9.5 | 1.3 | 9.5 | |
Cumulative charges incurred through December 31, 2016 | 10.8 | |||
Total expected charges | 12.2 | |||
2015 Efficiency Program [Member] | Employee Severance and Other Personnel Benefits [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 0.6 | 9.4 | ||
Restructuring and related charges | 0.6 | 9.4 | ||
Cumulative charges incurred through December 31, 2016 | 10.0 | |||
Total expected charges | 10.0 | |||
2015 Efficiency Program [Member] | Other [Member] | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring and related charges | 0.7 | 0.1 | ||
Restructuring and related charges | 0.7 | $ 0.1 | ||
Cumulative charges incurred through December 31, 2016 | 0.8 | |||
Total expected charges | $ 2.2 |
RESTRUCTURING CHARGES - Restructuring Reserve (Details) $ in Millions |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2016
USD ($)
job_position
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
job_position
|
|
Restructuring Reserve [Roll Forward] | ||||
Balance Beginning of Year | $ 11.8 | $ 14.0 | ||
(Income) Expense, Net | 39.4 | 10.5 | ||
Foreign Currency Translation | 0.0 | (0.3) | ||
Cash utilized, net | (8.7) | (12.4) | ||
Non-cash utilized, net | 0.3 | 0.0 | ||
Balance End of Year | $ 42.8 | 42.8 | 11.8 | $ 14.0 |
Elizabeth Arden Integration Restructuring Actions [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
(Income) Expense, Net | 34.5 | |||
Number of positions eliminated | job_position | 350 | |||
Elizabeth Arden Integration Restructuring Actions [Member] | Employee Severance and Other Personnel Benefits [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance Beginning of Year | 0.0 | |||
(Income) Expense, Net | 31.5 | |||
Foreign Currency Translation | 0.0 | |||
Cash utilized, net | 0.0 | |||
Non-cash utilized, net | 0.0 | |||
Balance End of Year | $ 31.5 | 31.5 | 0.0 | |
Elizabeth Arden Integration Restructuring Actions [Member] | Other [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance Beginning of Year | 0.0 | |||
(Income) Expense, Net | 3.0 | |||
Foreign Currency Translation | 0.0 | |||
Cash utilized, net | 0.0 | |||
Non-cash utilized, net | 0.0 | |||
Balance End of Year | 3.0 | 3.0 | 0.0 | |
Elizabeth Arden Integration Restructuring Actions [Member] | Inventory Adjustments and Other Restructuring [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
(Income) Expense, Net | 2.8 | |||
2015 Efficiency Program [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Cash utilized, net | (3.3) | (2.8) | ||
2015 Efficiency Program [Member] | Employee Severance and Other Personnel Benefits [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance Beginning of Year | 6.6 | 0.0 | ||
(Income) Expense, Net | 0.6 | 9.4 | ||
Foreign Currency Translation | 0.0 | 0.0 | ||
Cash utilized, net | (2.7) | (2.8) | ||
Non-cash utilized, net | 0.0 | 0.0 | ||
Balance End of Year | 4.5 | 4.5 | 6.6 | 0.0 |
2015 Efficiency Program [Member] | Other [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance Beginning of Year | 0.1 | 0.0 | ||
(Income) Expense, Net | 0.7 | 0.1 | ||
Foreign Currency Translation | 0.0 | 0.0 | ||
Cash utilized, net | (0.6) | 0.0 | ||
Non-cash utilized, net | 0.0 | 0.0 | ||
Balance End of Year | 0.2 | 0.2 | 0.1 | 0.0 |
2014 Integration Program [Member] | Employee Severance and Other Personnel Benefits [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance Beginning of Year | 0.8 | 9.6 | ||
(Income) Expense, Net | 0.0 | (3.4) | ||
Foreign Currency Translation | 0.0 | (0.2) | ||
Cash utilized, net | (0.8) | (5.2) | ||
Non-cash utilized, net | 0.0 | 0.0 | ||
Balance End of Year | 0.0 | 0.0 | 0.8 | 9.6 |
2014 Integration Program [Member] | Other [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance Beginning of Year | 0.1 | 0.1 | ||
(Income) Expense, Net | 0.0 | 0.6 | ||
Foreign Currency Translation | 0.0 | 0.0 | ||
Cash utilized, net | (0.1) | (0.6) | ||
Non-cash utilized, net | 0.0 | 0.0 | ||
Balance End of Year | 0.0 | 0.0 | 0.1 | $ 0.1 |
December 2013 Program [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Number of positions eliminated | job_position | 1,100 | |||
December 2013 Program [Member] | Employee Severance and Other Personnel Benefits [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance Beginning of Year | 1.2 | 1.2 | ||
(Income) Expense, Net | 0.0 | 0.0 | ||
Foreign Currency Translation | 0.0 | 0.0 | ||
Cash utilized, net | 0.0 | 0.0 | ||
Non-cash utilized, net | 0.0 | 0.0 | ||
Balance End of Year | 1.2 | 1.2 | 1.2 | $ 1.2 |
December 2013 Program [Member] | Other [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance Beginning of Year | 0.0 | 0.0 | ||
(Income) Expense, Net | 0.0 | 0.0 | ||
Foreign Currency Translation | 0.0 | 0.0 | ||
Cash utilized, net | 0.0 | 0.0 | ||
Non-cash utilized, net | 0.0 | 0.0 | ||
Balance End of Year | 0.0 | 0.0 | 0.0 | 0.0 |
Other Immaterial Actions [Member] | Employee Severance and Other Personnel Benefits [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance Beginning of Year | 2.3 | 3.1 | ||
(Income) Expense, Net | 2.1 | 1.7 | ||
Foreign Currency Translation | 0.0 | (0.1) | ||
Cash utilized, net | (3.0) | (2.4) | ||
Non-cash utilized, net | 0.0 | 0.0 | ||
Balance End of Year | 1.4 | 1.4 | 2.3 | 3.1 |
Other Immaterial Actions [Member] | Other [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
Balance Beginning of Year | 0.7 | 0.0 | ||
(Income) Expense, Net | 1.5 | 2.1 | ||
Foreign Currency Translation | 0.0 | 0.0 | ||
Cash utilized, net | (1.5) | (1.4) | ||
Non-cash utilized, net | 0.3 | 0.0 | ||
Balance End of Year | $ 1.0 | 1.0 | $ 0.7 | $ 0.0 |
Elizabeth Arden [Member] | Other Immaterial Actions [Member] | ||||
Restructuring Reserve [Roll Forward] | ||||
(Income) Expense, Net | $ 2.6 |
RESTRUCTURING CHARGES - Additional Information (Details) $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||
---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
job_position
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2017
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related charges | $ 34.0 | $ 10.5 | $ 21.3 | |||
Payments for restructuring | 8.7 | 12.4 | ||||
Elizabeth Arden Integration Restructuring Actions [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Number of positions eliminated | job_position | 350 | |||||
Restructuring and related charges | 31.7 | |||||
Elizabeth Arden Integration Restructuring Actions [Member] | Consumer [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related charges | 4.2 | |||||
Elizabeth Arden Integration Restructuring Actions [Member] | Other [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related charges | 15.4 | |||||
Elizabeth Arden Integration Restructuring Actions [Member] | Professional [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related charges | 5.6 | |||||
Elizabeth Arden Integration Restructuring Actions [Member] | Elizabeth Arden [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related charges | 6.5 | |||||
Elizabeth Arden Integration Restructuring Actions [Member] | Minimum [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring and related charges | $ 65.0 | 65.0 | ||||
Expected cash payments | 65.0 | 65.0 | ||||
Elizabeth Arden Integration Restructuring Actions [Member] | Maximum [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring and related charges | 75.0 | 75.0 | ||||
Expected cash payments | 75.0 | 75.0 | ||||
Elizabeth Arden Integration Restructuring Actions [Member] | Forecast [Member] | Minimum [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | $ 30.0 | |||||
Elizabeth Arden Integration Restructuring Actions [Member] | Forecast [Member] | Maximum [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | $ 40.0 | |||||
Elizabeth Arden Integration Restructuring Actions [Member] | Employee-related costs [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related charges | 31.5 | |||||
Payments for restructuring | 0.0 | |||||
Elizabeth Arden Integration Restructuring Actions [Member] | Employee-related costs [Member] | Minimum [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring and related charges | 40.0 | 40.0 | ||||
Elizabeth Arden Integration Restructuring Actions [Member] | Employee-related costs [Member] | Maximum [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring and related charges | 50.0 | 50.0 | ||||
Elizabeth Arden Integration Restructuring Actions [Member] | Lease termination costs [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring and related charges | 15.0 | 15.0 | ||||
Elizabeth Arden Integration Restructuring Actions [Member] | Other [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring and related charges | 10.0 | 10.0 | ||||
Restructuring and related charges | 0.2 | |||||
Payments for restructuring | 0.0 | |||||
2015 Efficiency Program [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring and related charges | 12.2 | 12.2 | ||||
Restructuring and related charges | $ 9.5 | 1.3 | 9.5 | |||
Cumulative restructuring and related charges incurred | 10.8 | 10.8 | ||||
Expected cash payments | 12.0 | 12.0 | ||||
Expected cash payments, capital expenditures | 0.2 | 0.2 | ||||
Payments for restructuring | 3.3 | 2.8 | ||||
2015 Efficiency Program [Member] | Consumer [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related charges | 0.4 | |||||
Cumulative restructuring and related charges incurred | 6.4 | 6.4 | ||||
2015 Efficiency Program [Member] | Professional [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring and related charges | 0.5 | |||||
Cumulative restructuring and related charges incurred | 3.7 | 3.7 | ||||
2015 Efficiency Program [Member] | Employee-related costs [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring and related charges | 10.0 | 10.0 | ||||
Restructuring and related charges | 0.6 | 9.4 | ||||
Cumulative restructuring and related charges incurred | 10.0 | 10.0 | ||||
Payments for restructuring | 2.7 | 2.8 | ||||
2015 Efficiency Program [Member] | Other [Member] | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring and related charges | 2.2 | 2.2 | ||||
Restructuring and related charges | 0.7 | 0.1 | ||||
Cumulative restructuring and related charges incurred | $ 0.8 | 0.8 | ||||
Payments for restructuring | $ 0.6 | $ 0.0 |
DISCONTINUED OPERATIONS (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Statement Disclosures [Abstract] | |||||||||||
(Loss) income from discontinued operations, net of taxes | $ (2.6) | $ (0.2) | $ (2.5) | $ 0.4 | $ (1.4) | $ (1.7) | $ 0.0 | $ (0.1) | $ (4.9) | $ (3.2) | $ 1.3 |
Operations in China [Member] | |||||||||||
Income Statement Disclosures [Abstract] | |||||||||||
Net sales | 0.0 | 0.0 | 2.6 | ||||||||
(Loss) income from discontinued operations, before taxes | (4.9) | (3.2) | 1.5 | ||||||||
Provision for income taxes | 0.0 | 0.0 | 0.2 | ||||||||
(Loss) income from discontinued operations, net of taxes | (4.9) | (3.2) | $ 1.3 | ||||||||
Balance Sheet Disclosures [Abstract] | |||||||||||
Cash and cash equivalents | 1.7 | 2.0 | 1.7 | 2.0 | |||||||
Trade receivables, net | 0.2 | 0.2 | 0.2 | 0.2 | |||||||
Total current assets | 1.9 | 2.2 | 1.9 | 2.2 | |||||||
Total assets | 1.9 | 2.2 | 1.9 | 2.2 | |||||||
Accounts payable | 0.5 | 0.7 | 0.5 | 0.7 | |||||||
Accrued expenses and other | 3.3 | 3.6 | 3.3 | 3.6 | |||||||
Total current liabilities | 3.8 | 4.3 | 3.8 | 4.3 | |||||||
Total liabilities | $ 3.8 | $ 4.3 | $ 3.8 | $ 4.3 |
INVENTORIES - Components of Inventories (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Inventory Disclosure [Abstract] | |||||
Raw materials and supplies | $ 72.9 | $ 58.2 | |||
Work-in-process | 33.5 | 8.3 | |||
Finished goods | 318.2 | 117.3 | |||
Inventories | $ 424.6 | $ 183.8 | [1] | ||
|
PREPAID EXPENSES AND OTHER (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |||||
Prepaid expenses | $ 34.6 | $ 18.2 | |||
Other | 50.3 | 35.1 | |||
Prepaid expenses and other | $ 84.9 | $ 53.3 | [1] | ||
|
PROPERTY, PLANT AND EQUIPMENT (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, gross | $ 625.2 | $ 487.0 | ||||
Accumulated depreciation and amortization | (304.7) | (271.7) | ||||
Property, plant and equipment, net | 320.5 | 215.3 | [1] | |||
Depreciation and amortization expense | 45.0 | 37.0 | $ 36.9 | |||
Land and improvements [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, gross | 10.4 | 10.7 | ||||
Buildings and improvements [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, gross | 88.6 | 84.7 | ||||
Machinery, equipment and capital leases [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, gross | 243.3 | 213.0 | ||||
Office furniture, fixtures and capitalized software [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, gross | 122.7 | 118.1 | ||||
Counters and trade fixtures [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, gross | 60.8 | 0.0 | ||||
Leasehold improvements [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, gross | 46.0 | 29.0 | ||||
Construction-in-progress [Member] | ||||||
Property, Plant and Equipment [Line Items] | ||||||
Property, plant and equipment, gross | $ 53.4 | $ 31.5 | ||||
|
GOODWILL AND INTANGIBLE ASSETS, NET - Changes in Goodwill by Segment (Details) |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
reporting_unit
|
Dec. 31, 2014
USD ($)
|
||||||
Goodwill [Roll Forward] | ||||||||||
Beginning Balance | $ 469,700,000 | [1] | $ 464,100,000 | |||||||
Goodwill acquired | 239,100,000 | 21,400,000 | ||||||||
Foreign currency translation adjustment | (2,600,000) | (6,100,000) | ||||||||
Goodwill impairment charge | (16,700,000) | (9,700,000) | $ 0 | |||||||
Ending Balance | $ 689,500,000 | $ 469,700,000 | [1] | 689,500,000 | $ 469,700,000 | [1] | 464,100,000 | |||
Cumulative goodwill impairment charges | (26,400,000) | (26,400,000) | ||||||||
Number of reporting units | reporting_unit | 4 | |||||||||
Consumer [Member] | Cutex Brands, LLC [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Goodwill acquired | $ 1,900,000 | |||||||||
Other [Member] | CBBeauty Group [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Goodwill acquired | 19,500,000 | |||||||||
Operating Segments [Member] | Consumer [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Beginning Balance | 210,100,000 | 217,900,000 | ||||||||
Goodwill acquired | 17,400,000 | 1,900,000 | ||||||||
Foreign currency translation adjustment | 0 | 0 | ||||||||
Goodwill impairment charge | 0 | (9,700,000) | ||||||||
Ending Balance | 227,500,000 | 210,100,000 | 227,500,000 | 210,100,000 | 217,900,000 | |||||
Cumulative goodwill impairment charges | (9,700,000) | (9,700,000) | ||||||||
Operating Segments [Member] | Consumer [Member] | Cutex International [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Goodwill acquired | 17,400,000 | |||||||||
Operating Segments [Member] | Professional [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Beginning Balance | 240,700,000 | 246,200,000 | ||||||||
Goodwill acquired | 0 | 0 | ||||||||
Foreign currency translation adjustment | (400,000) | (5,500,000) | ||||||||
Goodwill impairment charge | 0 | 0 | ||||||||
Ending Balance | 240,300,000 | 240,700,000 | 240,300,000 | 240,700,000 | 246,200,000 | |||||
Cumulative goodwill impairment charges | 0 | 0 | ||||||||
Operating Segments [Member] | Elizabeth Arden [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Beginning Balance | 0 | 0 | ||||||||
Goodwill acquired | 221,700,000 | 0 | ||||||||
Foreign currency translation adjustment | 0 | 0 | ||||||||
Goodwill impairment charge | 0 | 0 | ||||||||
Ending Balance | 221,700,000 | 0 | 221,700,000 | 0 | 0 | |||||
Cumulative goodwill impairment charges | 0 | 0 | ||||||||
Operating Segments [Member] | Elizabeth Arden [Member] | Elizabeth Arden [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Goodwill acquired | 221,700,000 | |||||||||
Operating Segments [Member] | Other [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Beginning Balance | 18,900,000 | 0 | ||||||||
Goodwill acquired | 0 | 19,500,000 | ||||||||
Foreign currency translation adjustment | (2,200,000) | (600,000) | ||||||||
Goodwill impairment charge | (16,700,000) | 0 | ||||||||
Ending Balance | 0 | 18,900,000 | 0 | $ 18,900,000 | $ 0 | |||||
Cumulative goodwill impairment charges | (16,700,000) | (16,700,000) | ||||||||
Other reporting unit [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Goodwill impairment charge | (16,700,000) | |||||||||
Ending Balance | $ 0 | $ 0 | ||||||||
Weighted average cost of capital | 23.00% | |||||||||
Perpetual growth rate | 2.00% | |||||||||
Global Color Brands reporting unit [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Goodwill impairment charge | $ (9,700,000) | |||||||||
|
GOODWILL AND INTANGIBLE ASSETS, NET - Summary of Intangible Assets (Details) - USD ($) |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets, gross carrying amount | $ 478,100,000 | $ 284,100,000 | ||||
Finite-lived intangible assets, accumulated amortization | (84,800,000) | (61,100,000) | ||||
Finite-lived intangible assets, net carrying amount | 393,300,000 | 223,000,000 | ||||
Amortization expense | 27,500,000 | 22,400,000 | $ 21,300,000 | |||
Impairment of finite-lived intangible assets | 6,700,000 | 0 | $ 0 | |||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets, carrying amount | 243,300,000 | 95,000,000 | ||||
Intangible assets, gross carrying amount | 721,400,000 | 379,100,000 | ||||
Intangible assets, net carrying amount | 636,600,000 | 318,000,000 | [1] | |||
Trade names [Member] | ||||||
Indefinite-lived Intangible Assets [Line Items] | ||||||
Indefinite-lived intangible assets, carrying amount | 243,300,000 | 95,000,000 | ||||
Trademarks [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets, gross carrying amount | 177,900,000 | 145,000,000 | ||||
Finite-lived intangible assets, accumulated amortization | (47,900,000) | (36,000,000) | ||||
Finite-lived intangible assets, net carrying amount | $ 130,000,000 | $ 109,000,000 | ||||
Weighted average useful life | 13 years | 15 years | ||||
Impairment of finite-lived intangible assets | $ 500,000 | |||||
Customer relationships [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets, gross carrying amount | 247,600,000 | $ 118,800,000 | ||||
Finite-lived intangible assets, accumulated amortization | (30,100,000) | (20,500,000) | ||||
Finite-lived intangible assets, net carrying amount | $ 217,500,000 | $ 98,300,000 | ||||
Weighted average useful life | 14 years | 16 years | ||||
Impairment of finite-lived intangible assets | $ 4,200,000 | |||||
Patents and Internally-Developed IP [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets, gross carrying amount | 20,300,000 | $ 16,800,000 | ||||
Finite-lived intangible assets, accumulated amortization | (6,100,000) | (4,000,000) | ||||
Finite-lived intangible assets, net carrying amount | $ 14,200,000 | $ 12,800,000 | ||||
Weighted average useful life | 8 years | 10 years | ||||
Distribution rights [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets, gross carrying amount | $ 31,000,000 | $ 3,500,000 | ||||
Finite-lived intangible assets, accumulated amortization | (500,000) | (600,000) | ||||
Finite-lived intangible assets, net carrying amount | $ 30,500,000 | $ 2,900,000 | ||||
Weighted average useful life | 18 years | 5 years | ||||
Impairment of finite-lived intangible assets | $ 2,000,000 | |||||
Other [Member] | ||||||
Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-lived intangible assets, gross carrying amount | 1,300,000 | |||||
Finite-lived intangible assets, accumulated amortization | (200,000) | |||||
Finite-lived intangible assets, net carrying amount | $ 1,100,000 | |||||
|
GOODWILL AND INTANGIBLE ASSETS, NET - Estimated Future Amortization Expense (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2017 | $ 34.1 | |
2018 | 33.2 | |
2019 | 30.6 | |
2020 | 29.8 | |
2021 | 28.7 | |
Thereafter | 236.9 | |
Finite-lived intangible assets, net carrying amount | $ 393.3 | $ 223.0 |
ACCRUED EXPENSES AND OTHER - Components of Accrued Expenses and Other (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Payables and Accruals [Abstract] | |||||
Compensation and related benefits | $ 75.8 | $ 75.6 | |||
Advertising and promotional costs | 66.7 | 38.4 | |||
Sales returns and allowances | 51.9 | 61.1 | |||
Taxes | 39.0 | 20.8 | |||
Restructuring reserve | 38.0 | 11.8 | |||
Interest | 24.4 | 12.4 | |||
Other | 86.9 | 52.3 | |||
Accrued expenses and other | $ 382.7 | $ 272.4 | [1] | ||
|
SHORT-TERM BORROWINGS (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Short Term Debt Disclosure [Abstract] | |||||
Short-term borrowings | $ 10.8 | $ 11.3 | [1] | ||
Weighted average interest rate | 5.00% | 4.90% | |||
|
LONG-TERM DEBT - Components of Long-term Debt (Details) - USD ($) |
1 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 07, 2016 |
Feb. 29, 2016 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Aug. 04, 2016 |
Dec. 31, 2015 |
Dec. 31, 2013 |
||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 2,681,200,000 | $ 1,813,700,000 | ||||||||
Less current portion | (18,100,000) | (30,000,000) | [1] | |||||||
Long-term debt | 2,663,100,000 | 1,783,700,000 | [1] | |||||||
Aggregate principal amount outstanding | 2,746,000,000 | |||||||||
2016 Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | 1,747,800,000 | 0 | ||||||||
Acquisition Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | 0 | 662,100,000 | ||||||||
Repayment of debt | $ 658,600,000 | $ 12,500,000 | ||||||||
Quarterly principal amortization payments | 1,700,000 | |||||||||
Maximum borrowing capacity | 700,000,000.0 | |||||||||
Aggregate principal amount outstanding | 658,600,000 | |||||||||
2011 Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | 0 | 658,500,000 | ||||||||
Repayment of debt | 651,400,000 | 12,100,000 | ||||||||
Maximum borrowing capacity | 675,000,000.0 | |||||||||
Aggregate principal amount outstanding | 651,400,000 | 662,900,000 | ||||||||
2016 Revolving Credit Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | $ 0 | 0 | ||||||||
6.25% Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 6.25% | |||||||||
Long-term debt | $ 439,100,000 | 0 | ||||||||
5.75% Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 5.75% | 5.75% | ||||||||
Long-term debt | $ 493,800,000 | 492,500,000 | ||||||||
Aggregate principal amount outstanding | 500,000,000 | $ 500,000,000 | ||||||||
Spanish Government Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Long-term debt | 500,000 | 600,000 | ||||||||
Amended Term Loan Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of debt | $ 24,600,000 | |||||||||
Revlon Consumer Products Corporation [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Less current portion | (18,100,000) | (30,000,000) | ||||||||
Revlon Consumer Products Corporation [Member] | 2016 Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Less current portion | $ (18,000,000) | |||||||||
Maximum borrowing capacity | $ 1,800,000,000.0 | |||||||||
Revlon Consumer Products Corporation [Member] | Acquisition Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of debt | $ 11,700,000 | |||||||||
Quarterly principal amortization payments | $ 1,700,000 | |||||||||
Revlon Consumer Products Corporation [Member] | 2011 Term Loan [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of debt | 11,500,000 | |||||||||
Aggregate principal amount outstanding | 651,400,000 | |||||||||
Revlon Consumer Products Corporation [Member] | 6.25% Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 6.25% | |||||||||
Revlon Consumer Products Corporation [Member] | Amended Term Loan Facility [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Repayment of debt | $ 23,200,000 | |||||||||
|
LONG-TERM DEBT - Debt Redemption Prices (Details) |
1 Months Ended | |
---|---|---|
Aug. 04, 2016 |
Dec. 31, 2013 |
|
5.75% Senior Notes [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price percentage | 101.00% | |
5.75% Senior Notes [Member] | Period One [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price percentage | 104.313% | |
5.75% Senior Notes [Member] | Period Two [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price percentage | 102.875% | |
5.75% Senior Notes [Member] | Period Three [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price percentage | 101.438% | |
5.75% Senior Notes [Member] | Period Four [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price percentage | 100.00% | |
Revlon Consumer Products Corporation [Member] | 6.25% Senior Notes [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price percentage | 106.25% | |
Revlon Consumer Products Corporation [Member] | 6.25% Senior Notes [Member] | Period One [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price percentage | 104.688% | |
Revlon Consumer Products Corporation [Member] | 6.25% Senior Notes [Member] | Period Two [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price percentage | 103.125% | |
Revlon Consumer Products Corporation [Member] | 6.25% Senior Notes [Member] | Period Three [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price percentage | 101.563% | |
Revlon Consumer Products Corporation [Member] | 6.25% Senior Notes [Member] | Period Four [Member] | ||
Debt Instrument, Redemption [Line Items] | ||
Redemption price percentage | 100.00% |
LONG-TERM DEBT - Debt-Related Transactions (Details) - USD ($) |
1 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Sep. 07, 2016 |
Feb. 29, 2016 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Aug. 04, 2016 |
Dec. 31, 2015 |
Nov. 30, 2013 |
|
Debt Instrument [Line Items] | |||||||
Aggregate principal amount outstanding | $ 2,746,000,000 | ||||||
Principal payments | 18,100,000 | ||||||
Elizabeth Arden [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Acquisition, consideration transferred, repurchase and retirement of preferred stock | $ 55,000,000 | ||||||
Acquisition, consideration transferred, repurchase and retirement of preferred stock (in shares) | 50,000 | ||||||
Acquisition, consideration transferred, repurchase and retirement of preferred stock, change in control premium | $ 5,000,000 | ||||||
Interest rate swap [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, notional amount | $ 400,000,000 | $ 400,000,000 | |||||
Revlon Consumer Products Corporation [Member] | Elizabeth Arden [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Acquisition, consideration transferred, cash on hand | 126,700,000 | ||||||
Revlon Consumer Products Corporation [Member] | Interest rate swap [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Derivative, notional amount | 400,000,000 | ||||||
6.25% Senior Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 6.25% | ||||||
6.25% Senior Notes [Member] | Revlon Consumer Products Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 450,000,000 | ||||||
Stated interest rate | 6.25% | ||||||
2016 Revolving Credit Facility [Member] | Revlon Consumer Products Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Proceeds from lines of credit | $ 35,000,000 | ||||||
Elizabeth Arden senior notes [Member] | Elizabeth Arden [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Stated interest rate | 7.375% | ||||||
Acquisition, consideration transferred, repayment of debt of acquiree | $ 350,000,000 | ||||||
Elizabeth Arden revolving credit facility [Member] | Elizabeth Arden [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Acquisition, consideration transferred, repayment of debt of acquiree | 142,500,000 | ||||||
Repayment of principal amount of borrowings outstanding of acquiree | 142,000,000 | ||||||
Maximum borrowing capacity | 300,000,000.0 | ||||||
Elizabeth Arden Second lien credit facility [Member] | Elizabeth Arden [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Acquisition, consideration transferred, repayment of debt of acquiree | 25,000,000 | ||||||
2011 Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 675,000,000.0 | ||||||
Repayment of debt | 651,400,000 | $ 12,100,000 | |||||
Aggregate principal amount outstanding | 651,400,000 | 662,900,000 | |||||
2011 Term Loan [Member] | Revlon Consumer Products Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Repayment of debt | $ 11,500,000 | ||||||
Aggregate principal amount outstanding | 651,400,000 | ||||||
Acquisition Term Loan [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 700,000,000.0 | ||||||
Repayment of debt | 658,600,000 | 12,500,000 | |||||
Aggregate principal amount outstanding | $ 658,600,000 | ||||||
Principal payments | 1,800,000 | ||||||
Quarterly principal amortization payments | 1,700,000 | ||||||
Acquisition Term Loan [Member] | Revlon Consumer Products Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Repayment of debt | 11,700,000 | ||||||
Principal payments | 6,800,000 | 6,900,000 | |||||
Quarterly principal amortization payments | $ 1,700,000 | ||||||
Amended Term Loan Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Repayment of debt | $ 24,600,000 | ||||||
Percentage of excess cash flow, as defined | 50.00% | ||||||
Amended Term Loan Facility [Member] | Revlon Consumer Products Corporation [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Repayment of debt | $ 23,200,000 | ||||||
Percentage of excess cash flow, as defined | 50.00% |
LONG-TERM DEBT - 2016 Term Loan Facility (Details) - USD ($) |
3 Months Ended | 12 Months Ended | ||||||||
---|---|---|---|---|---|---|---|---|---|---|
Sep. 07, 2016 |
Sep. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
[1] | Dec. 31, 2014 |
[1] | Dec. 31, 2013 |
|||
Debt Instrument [Line Items] | ||||||||||
Loss on early extinguishment of debt | $ 16,900,000 | $ 16,900,000 | $ 0 | $ 2,000,000 | ||||||
2016 Term Loan [Member] | Revlon Consumer Products Corporation [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Maximum borrowing capacity | $ 1,800,000,000.0 | |||||||||
Debt term | 7 years | |||||||||
Debt alternate term, period from maturity of other debt | 91 days | |||||||||
Amount by which available liquidity does not exceed principal amount of other debt | $ 200,000,000.0 | |||||||||
Original issue discount percentage | 0.50% | |||||||||
Maximum borrowing capacity, base for calculation of potential increase | $ 450,000,000.0 | |||||||||
Maximum borrowing capacity, addition for calculation of potential increase, percentage of pro forma consolidated EBITDA | 90.00% | |||||||||
First lien leverage ratio | 3.5 | |||||||||
Secured leverage ratio | 4.25 | |||||||||
Maximum borrowing capacity, additional potential increase if other debt repaid and terminated | $ 400,000,000.0 | |||||||||
Equity of first tier foreign subsidiaries in excess of voting equity interests | 65.00% | |||||||||
Covenant terms, available amount base, percentage of cumulative consolidated net income | 50.00% | |||||||||
Covenant terms, available amount addition | $ 200,000,000.0 | |||||||||
Covenant terms, net debt to consolidated EBITDA ratio | 5.0 | |||||||||
Mandatory prepayments, percentage of excess cash flow, next fiscal year | 50.00% | |||||||||
Mandatory prepayments, step down percentage, achievement one | 25.00% | |||||||||
Mandatory prepayments, step down percentage, achievement two | 0.00% | |||||||||
Mandatory prepayments, premium payable in connection with a repricing transaction within six months | 1.00% | |||||||||
Debt issuance costs - capitalized and expensed | 45,200,000 | |||||||||
Debt issuance costs capitalized | 39,300,000 | |||||||||
Debt issuance costs expensed | 5,900,000 | |||||||||
Loss on early extinguishment of debt | $ 16,800,000 | |||||||||
2016 Term Loan [Member] | Adjusted LIBOR [Member] | Revlon Consumer Products Corporation [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Variable rate floor | 0.75% | |||||||||
Basis spread on variable interest rate | 3.50% | |||||||||
2016 Term Loan [Member] | Alternate base rate [Member] | Revlon Consumer Products Corporation [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Basis spread on variable interest rate | 2.50% | |||||||||
5.75% Senior Notes [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Stated interest rate | 5.75% | 5.75% | ||||||||
2011 Term Loan and Acquisition Term Loan [Member] | Revlon Consumer Products Corporation [Member] | ||||||||||
Debt Instrument [Line Items] | ||||||||||
Write off of deferred debt issuance costs | $ 10,900,000 | |||||||||
|
LONG-TERM DEBT - 2016 Revolving Credit Facility (Details) |
12 Months Ended | ||
---|---|---|---|
Sep. 07, 2016
USD ($)
exercise_cure_right
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2013 |
|
2016 Revolving Credit Facility [Member] | Revlon Consumer Products Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Debt term | 5 years | ||
Debt alternate term, period from maturity of other debt | 91 days | ||
2016 Revolving Credit Facility [Member] | Revolving credit facility [Member] | Revlon Consumer Products Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 400,000,000.0 | ||
Maximum borrowing capacity, potential increase | $ 50,000,000.0 | ||
Borrowing base calculation, percentage of eligible accounts receivable | 85.00% | ||
Borrowing base calculation, percentage of net orderly liquidation value | 85.00% | ||
Borrowing base calculation, qualified restricted cash cap | $ 75,000,000.0 | ||
Amount by which available liquidity does not exceed principal amount of other debt | $ 200,000,000.0 | ||
Equity of first tier foreign subsidiaries in excess of voting equity interests | 65.00% | ||
Unused capacity commitment fee percentage | 0.25% | ||
Covenant terms, liquidity | $ 35,000,000.0 | ||
Covenant terms, percentage of maximum | 10.00% | ||
Covenant terms, consolidated fixed charge coverage ratio | 100.00% | ||
Covenant terms, liquidity threshold, consecutive business days | 20 days | ||
Number of exercise cure rights in any four quarter period | exercise_cure_right | 2 | ||
Number of exercise cure rights during term | exercise_cure_right | 5 | ||
Debt issuance costs - capitalized and expensed | $ 5,700,000 | ||
Debt issuance costs capitalized | 5,600,000 | ||
Debt issuance costs expensed | $ 100,000 | ||
2016 Revolving Credit Facility [Member] | Sublimit, letters of credit [Member] | Revlon Consumer Products Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 100,000,000.0 | ||
2016 Revolving Credit Facility [Member] | Sublimit, swing line loans [Member] | Revlon Consumer Products Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Maximum borrowing capacity | $ 70,000,000.0 | ||
5.75% Senior Notes [Member] | |||
Debt Instrument [Line Items] | |||
Stated interest rate | 5.75% | 5.75% | |
Alternate base rate [Member] | Average excess availability, threshold one [Member] | 2016 Revolving Credit Facility [Member] | Revolving credit facility [Member] | Revlon Consumer Products Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 0.25% | ||
Alternate base rate [Member] | Average excess availability, threshold two [Member] | 2016 Revolving Credit Facility [Member] | Revolving credit facility [Member] | Revlon Consumer Products Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 0.50% | ||
Alternate base rate [Member] | Average excess availability, threshold three [Member] | 2016 Revolving Credit Facility [Member] | Revolving credit facility [Member] | Revlon Consumer Products Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 0.75% | ||
Eurocurrency [Member] | Average excess availability, threshold one [Member] | 2016 Revolving Credit Facility [Member] | Revolving credit facility [Member] | Revlon Consumer Products Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 1.25% | ||
Eurocurrency [Member] | Average excess availability, threshold two [Member] | 2016 Revolving Credit Facility [Member] | Revolving credit facility [Member] | Revlon Consumer Products Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 1.50% | ||
Eurocurrency [Member] | Average excess availability, threshold three [Member] | 2016 Revolving Credit Facility [Member] | Revolving credit facility [Member] | Revlon Consumer Products Corporation [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable interest rate | 1.75% |
LONG-TERM DEBT - Senior Notes (Details) |
1 Months Ended | 12 Months Ended | |||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Aug. 04, 2016
USD ($)
|
Feb. 08, 2013
USD ($)
|
Dec. 31, 2013
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
[1] |
Dec. 31, 2014
USD ($)
|
[1] |
Sep. 07, 2016
USD ($)
|
Feb. 29, 2016
USD ($)
|
Mar. 31, 2015
USD ($)
|
|||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount outstanding | $ 2,746,000,000 | ||||||||||||
5.75% Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 5.75% | 5.75% | |||||||||||
Aggregate principal amount outstanding | $ 500,000,000 | $ 500,000,000 | |||||||||||
Proceeds from Issuance of Senior Long-term Debt | $ 491,200,000 | ||||||||||||
Redemption price percentage | 101.00% | ||||||||||||
Financing costs | $ 19,400,000 | ||||||||||||
Original 5.75% Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 5.75% | ||||||||||||
Aggregate principal amount | $ 500,000,000.0 | ||||||||||||
2011 Term Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount outstanding | $ 651,400,000 | $ 662,900,000 | |||||||||||
Repayments of long-term debt | $ 113,000,000 | $ 11,500,000 | $ 12,100,000 | $ 0 | |||||||||
9.75% Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 9.75% | ||||||||||||
Repayments of long-term debt | $ 330,000,000 | ||||||||||||
Accrued interest | $ 8,600,000 | ||||||||||||
6.25% Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 6.25% | ||||||||||||
Revlon Consumer Products Corporation [Member] | 2011 Term Loan [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Aggregate principal amount outstanding | $ 651,400,000 | ||||||||||||
Revlon Consumer Products Corporation [Member] | 6.25% Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Stated interest rate | 6.25% | ||||||||||||
Aggregate principal amount | $ 450,000,000 | ||||||||||||
Frequency of interest payments | 6 months | ||||||||||||
Percentage of principal amount that may be redeemed | 40.00% | ||||||||||||
Redemption price percentage | 106.25% | ||||||||||||
Minimum percentage of principal amount to remain outstanding after redemption | 60.00% | ||||||||||||
Redemption price percentage, change of control | 101.00% | ||||||||||||
Debt issuance costs capitalized | $ 11,300,000 | ||||||||||||
Treasury rate [Member] | Revlon Consumer Products Corporation [Member] | 6.25% Senior Notes [Member] | |||||||||||||
Debt Instrument [Line Items] | |||||||||||||
Optional redemption, make-whole premium, basis spread on variable rate | 0.0050 | ||||||||||||
|
LONG-TERM DEBT - Covenants (Details) - Revlon Consumer Products Corporation [Member] - USD ($) |
Dec. 31, 2016 |
Sep. 07, 2016 |
---|---|---|
2016 Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Amount outstanding | $ 1,795,500,000 | |
Maximum borrowing capacity | $ 1,800,000,000.0 | |
Revolving credit facility [Member] | 2016 Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Amount outstanding | 0 | |
Maximum borrowing capacity | 400,000,000.0 | |
Calculated borrowing base | 389,200,000 | |
Remaining borrowing capacity | 378,800,000 | |
Sublimit, letters of credit [Member] | 2016 Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Amount outstanding | $ 10,400,000 | |
Maximum borrowing capacity | $ 100,000,000.0 |
LONG-TERM DEBT - Spanish Government Loan (Details) - Spanish Government Loan [Member] $ in Millions |
12 Months Ended |
---|---|
Dec. 31, 2016
USD ($)
payment
| |
Debt Instrument [Line Items] | |
Aggregate principal amount outstanding | $ | $ 0.5 |
Number of installments | payment | 10 |
LONG-TERM DEBT - Long-Term Debt Maturities (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2013 |
---|---|---|---|
Long-Term Debt Maturities | |||
2017 | $ 18.1 | ||
2018 | 18.1 | ||
2019 | 18.1 | ||
2020 | 18.1 | ||
2021 | 518.1 | ||
Thereafter | 2,155.5 | ||
Total long-term debt | 2,746.0 | ||
Discounts and deferred finance charges | (64.8) | ||
Long-term debt | 2,681.2 | $ 1,813.7 | |
5.75% Senior Notes [Member] | |||
Long-Term Debt Maturities | |||
Total long-term debt | 500.0 | $ 500.0 | |
Long-term debt | $ 493.8 | $ 492.5 | |
Stated interest rate | 5.75% | 5.75% |
FAIR VALUE MEASUREMENTS - Schedule of Fair Values of Financial Assets and Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Assets: | ||
FX Contracts | $ 2.3 | $ 2.0 |
Total assets at fair value | 2.3 | 2.0 |
Liabilities: | ||
FX Contracts | 1.1 | 0.6 |
2013 Interest Rate Swap | 4.7 | 6.5 |
Total liabilities at fair value | 5.8 | 7.1 |
Level 1 [Member] | ||
Assets: | ||
FX Contracts | 0.0 | 0.0 |
Total assets at fair value | 0.0 | 0.0 |
Liabilities: | ||
FX Contracts | 0.0 | 0.0 |
2013 Interest Rate Swap | 0.0 | 0.0 |
Total liabilities at fair value | 0.0 | 0.0 |
Level 2 [Member] | ||
Assets: | ||
FX Contracts | 2.3 | 2.0 |
Total assets at fair value | 2.3 | 2.0 |
Liabilities: | ||
FX Contracts | 1.1 | 0.6 |
2013 Interest Rate Swap | 4.7 | 6.5 |
Total liabilities at fair value | 5.8 | 7.1 |
Level 3 [Member] | ||
Assets: | ||
FX Contracts | 0.0 | 0.0 |
Total assets at fair value | 0.0 | 0.0 |
Liabilities: | ||
FX Contracts | 0.0 | 0.0 |
2013 Interest Rate Swap | 0.0 | 0.0 |
Total liabilities at fair value | $ 0.0 | $ 0.0 |
FAIR VALUE MEASUREMENTS - Schedule of Fair Values of Financial Liabilities (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Liabilities: | ||
Fair Value, Long-term debt, including current portion | $ 2,770.9 | $ 1,818.0 |
Carrying Value, Long-term debt, including current portion | 2,681.2 | 1,813.7 |
Level 1 [Member] | ||
Liabilities: | ||
Fair Value, Long-term debt, including current portion | 0.0 | 0.0 |
Level 2 [Member] | ||
Liabilities: | ||
Fair Value, Long-term debt, including current portion | 2,770.9 | 1,818.0 |
Level 3 [Member] | ||
Liabilities: | ||
Fair Value, Long-term debt, including current portion | $ 0.0 | $ 0.0 |
FINANCIAL INSTRUMENTS - Fair Value of Derivative Financial Instruments in Consolidated Balance Sheet (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Interest rate swap [Member] | Designated as hedging instrument [Member] | Prepaid expenses and other [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative asset | $ 0.0 | $ 0.0 |
Interest rate swap [Member] | Designated as hedging instrument [Member] | Other assets [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative asset | 0.0 | 0.0 |
Interest rate swap [Member] | Designated as hedging instrument [Member] | Accrued expenses and other [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative liabilities | 0.0 | 4.0 |
Interest rate swap [Member] | Designated as hedging instrument [Member] | Other long-term liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative liabilities | 0.0 | 2.5 |
Interest rate swap [Member] | Not designated as hedging instrument [Member] | Prepaid expenses and other [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative asset | 0.0 | 0.0 |
Interest rate swap [Member] | Not designated as hedging instrument [Member] | Other assets [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative asset | 0.0 | 0.0 |
Interest rate swap [Member] | Not designated as hedging instrument [Member] | Accrued expenses and other [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative liabilities | 3.7 | 0.0 |
Interest rate swap [Member] | Not designated as hedging instrument [Member] | Other long-term liabilities [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative liabilities | 1.0 | 0.0 |
Foreign exchange contracts [Member] | Not designated as hedging instrument [Member] | Prepaid expenses and other [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative asset | 2.3 | 2.0 |
Foreign exchange contracts [Member] | Not designated as hedging instrument [Member] | Accrued expenses and other [Member] | ||
Derivative Instruments [Abstract] | ||
Fair value of gross derivative liabilities | $ 1.1 | $ 0.6 |
FINANCIAL INSTRUMENTS - Effects of Derivative Financial Instruments, Other Comprehensive Income (Loss) and Net Income (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Derivative Instruments, Gain (Loss) [Line Items] | |||
Revaluation of derivative financial instruments, net of reclassifications into earnings, tax expense (benefit) | $ 0.5 | $ (1.0) | $ (2.3) |
Interest rate swap [Member] | Designated as hedging instrument [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in other comprehensive income | 0.8 | (1.6) | (3.7) |
Interest rate swap [Member] | Designated as hedging instrument [Member] | Interest expense [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in net income | (4.3) | (2.6) | 0.0 |
Interest rate swap [Member] | Not designated as hedging instrument [Member] | Miscellaneous, net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in net income | 0.7 | 0.0 | |
Foreign exchange contracts [Member] | Not designated as hedging instrument [Member] | Foreign currency gain (loss), net [Member] | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of gain (loss) recognized in net income | $ 2.1 | $ 3.8 | $ 0.5 |
FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) |
1 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 07, 2016 |
May 31, 2015 |
Nov. 30, 2013 |
Dec. 31, 2016 |
Aug. 04, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||||
Standby and trade letters of credit for various corporate purposes | $ 10,400,000 | $ 8,800,000 | |||||||||
Accumulated income (loss) | (506,800,000) | (491,600,000) | [1] | $ (557,000,000) | $ (516,500,000) | ||||||
Fair value of assets | $ 2,300,000 | 2,000,000 | |||||||||
6.25% Senior Notes [Member] | |||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||||
Stated interest rate | 6.25% | ||||||||||
Revlon Consumer Products Corporation [Member] | 6.25% Senior Notes [Member] | |||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||||
Stated interest rate | 6.25% | ||||||||||
Deferred Gain - Hedging [Member] | |||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||||
Accumulated income (loss) | $ (3,000,000) | (3,800,000) | (2,200,000) | $ 1,500,000 | |||||||
Foreign exchange contracts [Member] | |||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||||
Derivative, notional amount | 79,600,000 | 76,300,000 | |||||||||
Interest rate swap [Member] | |||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||||
Derivative, notional amount | $ 400,000,000 | $ 400,000,000 | |||||||||
Term of contract | 3 years | 3 years | |||||||||
Floor interest rate (percent) | 1.00% | 0.75% | |||||||||
Fixed interest rate (percent) | 2.0709% | ||||||||||
Fixed interest rate on debt (percent) | 5.5709% | ||||||||||
Fair value derivative asset (liability) | $ (4,700,000) | ||||||||||
Discontinuation of cash flow hedge, accumulated deferred losses to be reclassified to earnings over remaining term | $ 6,300,000 | (4,900,000) | |||||||||
Discontinuation of cash flow hedge, accumulated deferred losses after tax to be reclassified to earnings over remaining term | 3,900,000 | (3,000,000) | |||||||||
Component in accumulated other comprehensive income, before tax, related to interest rate swap | 4,900,000 | ||||||||||
Component in accumulated other comprehensive income, after tax, related to interest rate swap | 3,000,000 | ||||||||||
Losses to be reclassified to earnings, next twelve months | 2,300,000 | ||||||||||
Interest rate swap [Member] | Revlon Consumer Products Corporation [Member] | |||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||||
Derivative, notional amount | $ 400,000,000 | ||||||||||
Interest rate swap [Member] | Deferred Gain - Hedging [Member] | |||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||||
Accumulated income (loss) | (3,000,000) | (3,800,000) | $ (2,200,000) | ||||||||
Standby Letters Of Credit Which Support Products Corporations Self Insurance Programs [Member] | |||||||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||||||
Standby and trade letters of credit for various corporate purposes | $ 7,300,000 | $ 7,500,000 | |||||||||
|
PENSION AND POST-RETIREMENT BENEFITS - Aggregate Reconciliation of Projected Benefit Obligations, Plan Assets, Funded Status and Amounts Recognized (Details) - USD ($) $ in Millions |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Change in Benefit Obligation: | ||||
Benefit obligation - beginning of year | $ (649.4) | |||
Benefit obligation - end of year | $ (649.4) | (640.5) | $ (649.4) | |
Change in Plan Assets: | ||||
Fair value of plan assets - beginning of year | 473.9 | |||
Fair value of plan assets - end of year | 473.9 | 464.0 | 473.9 | |
Pension Plans [Member] | ||||
Change in Benefit Obligation: | ||||
Benefit obligation - beginning of year | (649.4) | (761.7) | ||
Service cost | (0.5) | (0.7) | $ (0.8) | |
Interest cost | (20.7) | (28.6) | (30.1) | |
Actuarial gain (loss) | (21.6) | 44.4 | ||
Pension Lump sum settlement | 53.4 | 0.0 | 53.4 | |
Other pension settlements | 0.0 | 0.8 | ||
Benefits paid | (42.8) | (38.3) | ||
Foreign currency translation adjustments | 8.9 | 4.7 | ||
Other | 0.0 | 0.0 | ||
Benefit obligation - end of year | (649.4) | (640.5) | (649.4) | (761.7) |
Change in Plan Assets: | ||||
Fair value of plan assets - beginning of year | 473.9 | 567.7 | ||
Actual return on plan assets | 35.8 | (13.9) | ||
Employer contributions | 7.3 | 17.3 | ||
Lump sum settlement | 0.0 | (53.4) | ||
Other pension settlements | 0.0 | (0.8) | ||
Benefits paid | (42.8) | (38.3) | ||
Foreign currency translation adjustments | (10.2) | (4.7) | ||
Fair value of plan assets - end of year | 473.9 | 464.0 | 473.9 | 567.7 |
Total liability | (175.5) | (176.5) | (175.5) | |
Other Post-Retirement Benefit Plans [Member] | ||||
Change in Benefit Obligation: | ||||
Benefit obligation - beginning of year | (13.0) | (12.9) | ||
Service cost | 0.0 | 0.0 | 0.0 | |
Interest cost | (0.4) | (0.5) | (0.5) | |
Actuarial gain (loss) | (1.0) | (0.4) | ||
Pension Lump sum settlement | 0.0 | 0.0 | ||
Other pension settlements | 0.0 | 0.0 | ||
Benefits paid | (1.0) | (0.8) | ||
Foreign currency translation adjustments | 0.0 | 0.0 | ||
Other | 0.0 | 0.0 | ||
Benefit obligation - end of year | (13.0) | (13.4) | (13.0) | (12.9) |
Change in Plan Assets: | ||||
Fair value of plan assets - beginning of year | 0.0 | 0.0 | ||
Actual return on plan assets | 0.0 | 0.0 | ||
Employer contributions | 1.0 | 0.8 | ||
Lump sum settlement | 0.0 | 0.0 | ||
Other pension settlements | 0.0 | 0.0 | ||
Benefits paid | (1.0) | (0.8) | ||
Foreign currency translation adjustments | 0.0 | 0.0 | ||
Fair value of plan assets - end of year | 0.0 | 0.0 | 0.0 | $ 0.0 |
Total liability | $ (13.0) | $ (13.4) | $ (13.0) |
PENSION AND POST-RETIREMENT BENEFITS - Summary of Amounts Recognized in Respect to Pension Plans and Other Post-retirement Benefit Plans (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
|||
---|---|---|---|---|---|
Defined Benefit Plan Disclosure [Line Items] | |||||
Other Assets | $ 103.1 | $ 84.1 | [1] | ||
Accrued expenses and other | (382.7) | (272.4) | [1] | ||
Pension and other post-retirement benefit liabilities | (184.1) | (185.3) | [1] | ||
Accumulated other comprehensive loss, gross | 270.2 | ||||
Income tax (benefit) expense | (44.7) | ||||
Portion allocated to Revlon Holdings | (1.1) | ||||
Accumulated other comprehensive loss, net | 224.4 | ||||
Pension Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Other Assets | 0.0 | 3.6 | |||
Accrued expenses and other | (6.1) | (6.0) | |||
Pension and other post-retirement benefit liabilities | (170.4) | (173.1) | |||
Total liability | (176.5) | (175.5) | |||
Accumulated other comprehensive loss, gross | 266.6 | 258.0 | |||
Income tax (benefit) expense | (44.3) | (41.9) | |||
Portion allocated to Revlon Holdings | (0.9) | (0.9) | |||
Accumulated other comprehensive loss, net | 221.4 | 215.2 | |||
Other Post-Retirement Benefit Plans [Member] | |||||
Defined Benefit Plan Disclosure [Line Items] | |||||
Other Assets | 0.0 | 0.0 | |||
Accrued expenses and other | (0.8) | (0.8) | |||
Pension and other post-retirement benefit liabilities | (12.6) | (12.2) | |||
Total liability | (13.4) | (13.0) | |||
Accumulated other comprehensive loss, gross | 3.6 | 2.8 | |||
Income tax (benefit) expense | (0.4) | (0.1) | |||
Portion allocated to Revlon Holdings | (0.2) | (0.2) | |||
Accumulated other comprehensive loss, net | $ 3.0 | $ 2.5 | |||
|
PENSION AND POST-RETIREMENT BENEFITS - Projected Benefit Obligation, Accumulated Benefit Obligation, and Fair Value of Plan Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Compensation and Retirement Disclosure [Abstract] | ||
Projected benefit obligation | $ 640.5 | $ 649.4 |
Accumulated benefit obligation | 640.2 | 649.0 |
Fair value of plan assets | $ 464.0 | $ 473.9 |
PENSION AND POST-RETIREMENT BENEFITS - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Net periodic benefit (income) costs: | ||||
Lump sum settlement charge | $ 20.7 | |||
Net periodic benefit (income) costs | $ (0.6) | $ 18.8 | $ (5.4) | |
Pension Plans [Member] | ||||
Net periodic benefit (income) costs: | ||||
Service cost | 0.5 | 0.7 | 0.8 | |
Interest cost | 20.7 | 28.6 | 30.1 | |
Expected return on plan assets | (31.0) | (40.3) | (41.3) | |
Amortization of actuarial loss | 8.8 | 8.4 | 4.5 | |
Lump sum settlement charge | 0.0 | 20.7 | 0.0 | |
Other pension settlements charge | 0.0 | 0.3 | 0.0 | |
Net periodic benefit (income) costs, before allocation | (1.0) | 18.4 | (5.9) | |
Portion allocated to Revlon Holdings | (0.1) | (0.1) | (0.1) | |
Net periodic benefit (income) costs | (1.1) | 18.3 | (6.0) | |
Other Post-Retirement Benefit Plans [Member] | ||||
Net periodic benefit (income) costs: | ||||
Service cost | 0.0 | 0.0 | 0.0 | |
Interest cost | 0.4 | 0.5 | 0.5 | |
Expected return on plan assets | 0.0 | 0.0 | 0.0 | |
Amortization of actuarial loss | 0.2 | 0.1 | 0.1 | |
Lump sum settlement charge | 0.0 | 0.0 | 0.0 | |
Other pension settlements charge | 0.0 | 0.0 | 0.0 | |
Net periodic benefit (income) costs, before allocation | 0.6 | 0.6 | 0.6 | |
Portion allocated to Revlon Holdings | (0.1) | (0.1) | 0.0 | |
Net periodic benefit (income) costs | $ 0.5 | $ 0.5 | $ 0.6 |
PENSION AND POST-RETIREMENT BENEFITS - Classification of Net Periodic Pension (Income) Costs (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit (income) costs | $ (0.6) | $ 18.8 | $ (5.4) |
Cost of Sales [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit (income) costs | (2.5) | 6.1 | |
SG&A Expenses [Member] | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit (income) costs | $ 1.9 | $ 12.7 |
PENSION AND POST-RETIREMENT BENEFITS - Summary of Unrecognized Components of Net Periodic Benefit Cost (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | $ 270.2 | |
Prior service cost | 0.0 | |
Accumulated Other Comprehensive Loss, Gross | 270.2 | |
Income tax (benefit) expense | (44.7) | |
Portion allocated to Revlon Holdings | (1.1) | |
Accumulated other comprehensive loss, net | 224.4 | |
Pension Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 266.6 | |
Prior service cost | 0.0 | |
Accumulated Other Comprehensive Loss, Gross | 266.6 | $ 258.0 |
Income tax (benefit) expense | (44.3) | (41.9) |
Portion allocated to Revlon Holdings | (0.9) | (0.9) |
Accumulated other comprehensive loss, net | 221.4 | 215.2 |
Other Post-Retirement Benefit Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Net actuarial loss | 3.6 | |
Prior service cost | 0.0 | |
Accumulated Other Comprehensive Loss, Gross | 3.6 | 2.8 |
Income tax (benefit) expense | (0.4) | (0.1) |
Portion allocated to Revlon Holdings | (0.2) | (0.2) |
Accumulated other comprehensive loss, net | $ 3.0 | $ 2.5 |
PENSION AND POST-RETIREMENT BENEFITS - Weighted-average Assumptions Used to Determine Projected Benefit Obligation for Current Year (Details) |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 3.92% | 4.15% |
Rate of future compensation increases | 3.50% | 3.50% |
International Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Discount rate | 2.66% | 3.68% |
Rate of future compensation increases | 2.20% | 2.22% |
PENSION AND POST-RETIREMENT BENEFITS - Weighted-average Assumptions Used to Determine Net Periodic Benefit Cost (Details) |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
U.S. Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 4.15% | 3.89% | 4.68% |
Expected long-term return on plan assets | 7.00% | 7.50% | 7.75% |
Rate of future compensation increases | 3.50% | 3.00% | 3.00% |
International Plans [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Discount rate | 3.68% | 3.74% | 4.48% |
Expected long-term return on plan assets | 6.00% | 6.00% | 6.00% |
Rate of future compensation increases | 2.22% | 2.33% | 3.40% |
PENSION AND POST-RETIREMENT BENEFITS - Weighted Average Risk Target Ranges Per Asset Class (Details) |
12 Months Ended |
---|---|
Dec. 31, 2016 | |
International Plans [Member] | Common and preferred stock [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
International Plans [Member] | Mutual funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
International Plans [Member] | Fixed income securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
International Plans [Member] | Common and collective funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 100.00% |
International Plans [Member] | Hedge funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
International Plans [Member] | Group annuity contract [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
International Plans [Member] | Cash and other investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
Minimum [Member] | U.S. Plans [Member] | Common and preferred stock [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
Minimum [Member] | U.S. Plans [Member] | Mutual funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 20.00% |
Minimum [Member] | U.S. Plans [Member] | Fixed income securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 10.00% |
Minimum [Member] | U.S. Plans [Member] | Common and collective funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 25.00% |
Minimum [Member] | U.S. Plans [Member] | Hedge funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
Minimum [Member] | U.S. Plans [Member] | Group annuity contract [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
Minimum [Member] | U.S. Plans [Member] | Cash and other investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 0.00% |
Maximum [Member] | U.S. Plans [Member] | Common and preferred stock [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 10.00% |
Maximum [Member] | U.S. Plans [Member] | Mutual funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 30.00% |
Maximum [Member] | U.S. Plans [Member] | Fixed income securities [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 30.00% |
Maximum [Member] | U.S. Plans [Member] | Common and collective funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 55.00% |
Maximum [Member] | U.S. Plans [Member] | Hedge funds [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 15.00% |
Maximum [Member] | U.S. Plans [Member] | Group annuity contract [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 5.00% |
Maximum [Member] | U.S. Plans [Member] | Cash and other investments [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
Target ranges | 10.00% |
PENSION AND POST-RETIREMENT BENEFITS - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 464.0 | $ 473.9 |
U.S. Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 400.5 | 407.2 |
International Plans [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 63.5 | $ 66.7 |
PENSION AND POST-RETIREMENT BENEFITS - Fair Value of Asset Categories (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 464.0 | $ 473.9 |
Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 303.2 | 302.6 |
Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 160.8 | 171.3 |
Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Group Annuity Contract [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3.0 | 2.8 |
Group Annuity Contract [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Group Annuity Contract [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3.0 | 2.8 |
Group Annuity Contract [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
U.S. small/mid cap equity [Member] | Common and Preferred Stock [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 15.5 | 14.6 |
U.S. small/mid cap equity [Member] | Common and Preferred Stock [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 15.5 | 14.6 |
U.S. small/mid cap equity [Member] | Common and Preferred Stock [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
U.S. small/mid cap equity [Member] | Common and Preferred Stock [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
U.S. small/mid cap equity [Member] | Common and Collective Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 20.0 | 15.5 |
U.S. small/mid cap equity [Member] | Common and Collective Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 20.0 | 15.5 |
U.S. small/mid cap equity [Member] | Common and Collective Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
U.S. small/mid cap equity [Member] | Common and Collective Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Corporate bonds [Member] | Mutual Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14.3 | 14.9 |
Corporate bonds [Member] | Mutual Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 14.3 | 14.9 |
Corporate bonds [Member] | Mutual Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Corporate bonds [Member] | Mutual Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Corporate bonds [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 41.0 | 41.7 |
Corporate bonds [Member] | Fixed Income Securities [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Corporate bonds [Member] | Fixed Income Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 41.0 | 41.7 |
Corporate bonds [Member] | Fixed Income Securities [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Corporate bonds [Member] | Common and Collective Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 56.0 | 61.5 |
Corporate bonds [Member] | Common and Collective Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 54.3 | 59.9 |
Corporate bonds [Member] | Common and Collective Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.7 | 1.6 |
Corporate bonds [Member] | Common and Collective Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Corporate bonds [Member] | Hedge funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4.5 | 3.8 |
Corporate bonds [Member] | Hedge funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Corporate bonds [Member] | Hedge funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 4.5 | 3.8 |
Corporate bonds [Member] | Hedge funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Government bonds [Member] | Mutual Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 11.9 | 12.9 |
Government bonds [Member] | Mutual Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 11.9 | 12.9 |
Government bonds [Member] | Mutual Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Government bonds [Member] | Mutual Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Government bonds [Member] | Fixed Income Securities [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 13.9 | 6.9 |
Government bonds [Member] | Fixed Income Securities [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Government bonds [Member] | Fixed Income Securities [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 13.9 | 6.9 |
Government bonds [Member] | Fixed Income Securities [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Government bonds [Member] | Common and Collective Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 68.4 | 56.8 |
Government bonds [Member] | Common and Collective Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 57.0 | 43.4 |
Government bonds [Member] | Common and Collective Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 11.4 | 13.4 |
Government bonds [Member] | Common and Collective Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Government bonds [Member] | Hedge funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 6.5 | 8.6 |
Government bonds [Member] | Hedge funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Government bonds [Member] | Hedge funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 6.5 | 8.6 |
Government bonds [Member] | Hedge funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
U.S. large cap equity [Member] | Mutual Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.1 | 0.7 |
U.S. large cap equity [Member] | Mutual Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.1 | 0.7 |
U.S. large cap equity [Member] | Mutual Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
U.S. large cap equity [Member] | Mutual Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
U.S. large cap equity [Member] | Common and Collective Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 68.8 | 71.9 |
U.S. large cap equity [Member] | Common and Collective Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 67.5 | 70.4 |
U.S. large cap equity [Member] | Common and Collective Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 1.3 | 1.5 |
U.S. large cap equity [Member] | Common and Collective Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
U.S. large cap equity [Member] | Hedge funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2.1 | 3.8 |
U.S. large cap equity [Member] | Hedge funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
U.S. large cap equity [Member] | Hedge funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2.1 | 3.8 |
U.S. large cap equity [Member] | Hedge funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
International equities [Member] | Mutual Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3.9 | 3.0 |
International equities [Member] | Mutual Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3.9 | 3.0 |
International equities [Member] | Mutual Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
International equities [Member] | Mutual Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
International equities [Member] | Common and Collective Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 67.0 | 77.8 |
International equities [Member] | Common and Collective Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 34.9 | 36.8 |
International equities [Member] | Common and Collective Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 32.1 | 41.0 |
International equities [Member] | Common and Collective Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Emerging markets international equity [Member] | Mutual Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 6.3 | 5.1 |
Emerging markets international equity [Member] | Mutual Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 6.3 | 5.1 |
Emerging markets international equity [Member] | Mutual Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Emerging markets international equity [Member] | Mutual Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Emerging markets international equity [Member] | Common and Collective Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 15.3 | 14.5 |
Emerging markets international equity [Member] | Common and Collective Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 9.4 | 8.0 |
Emerging markets international equity [Member] | Common and Collective Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5.9 | 6.5 |
Emerging markets international equity [Member] | Common and Collective Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Other [Member] | Mutual Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3.0 | 2.0 |
Other [Member] | Mutual Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3.0 | 2.0 |
Other [Member] | Mutual Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Other [Member] | Mutual Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Other [Member] | Common and Collective Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 5.5 | 5.5 |
Other [Member] | Common and Collective Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2.4 | 2.5 |
Other [Member] | Common and Collective Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 3.1 | 3.0 |
Other [Member] | Common and Collective Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Other [Member] | Hedge funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 31.9 | 32.1 |
Other [Member] | Hedge funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Other [Member] | Hedge funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 31.9 | 32.1 |
Other [Member] | Hedge funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Cash and cash equivalents [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10.6 | 13.7 |
Cash and cash equivalents [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 10.6 | 13.7 |
Cash and cash equivalents [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Cash and cash equivalents [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Cash and cash equivalents [Member] | Common and Collective Funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | (7.9) | (0.8) |
Cash and cash equivalents [Member] | Common and Collective Funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | (7.9) | (0.8) |
Cash and cash equivalents [Member] | Common and Collective Funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Cash and cash equivalents [Member] | Common and Collective Funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Cash and cash equivalents [Member] | Hedge funds [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2.4 | 4.6 |
Cash and cash equivalents [Member] | Hedge funds [Member] | Level 1 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 0.0 | 0.0 |
Cash and cash equivalents [Member] | Hedge funds [Member] | Level 2 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | 2.4 | 4.6 |
Cash and cash equivalents [Member] | Hedge funds [Member] | Level 3 [Member] | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Fair value of plan assets | $ 0.0 | $ 0.0 |
PENSION AND POST-RETIREMENT BENEFITS - Estimated Future Benefit Payments (Details) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
Pension Plans [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2017 | $ 42.0 |
2018 | 41.9 |
2019 | 41.9 |
2020 | 42.5 |
2021 | 42.7 |
Years 2022 to 2026 | 204.8 |
Total Other Benefits [Member] | |
Defined Benefit Plan Disclosure [Line Items] | |
2017 | 1.1 |
2018 | 1.1 |
2019 | 1.1 |
2020 | 1.1 |
2021 | 1.1 |
Years 2022 to 2026 | $ 5.1 |
PENSION AND POST-RETIREMENT BENEFITS - Additional Information (Details) $ in Millions |
1 Months Ended | 3 Months Ended | 12 Months Ended | ||||||
---|---|---|---|---|---|---|---|---|---|
Jan. 31, 2017
USD ($)
|
Jan. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Jan. 31, 2015
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
Dec. 31, 2012
plan
|
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Number of qualified defined benefit pension plans | plan | 2 | ||||||||
Lump sum settlement charge | $ 20.7 | ||||||||
Net periodic benefit (income) costs | $ (0.6) | $ 18.8 | $ (5.4) | ||||||
Estimated contributions in next fiscal year | 8.0 | ||||||||
Pension Plans [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Pension Lump sum settlement | $ 53.4 | 0.0 | 53.4 | ||||||
Lump sum settlement charge | 0.0 | 20.7 | 0.0 | ||||||
Net periodic benefit (income) costs | (1.1) | 18.3 | (6.0) | ||||||
Actuarial losses and prior service costs expected to be recognized in net periodic benefit cost during next fiscal year | 9.0 | ||||||||
Employer contributions | 7.3 | 17.3 | |||||||
Other Post-Retirement Benefit Plans [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Pension Lump sum settlement | 0.0 | 0.0 | |||||||
Lump sum settlement charge | 0.0 | 0.0 | 0.0 | ||||||
Net periodic benefit (income) costs | 0.5 | 0.5 | $ 0.6 | ||||||
Actuarial losses and prior service costs expected to be recognized in net periodic benefit cost during next fiscal year | 0.3 | ||||||||
Employer contributions | $ 1.0 | $ 0.8 | |||||||
U.S. Plans [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Expected long-term return on plan assets | 7.00% | 7.50% | 7.75% | ||||||
International Plans [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Expected long-term return on plan assets | 6.00% | 6.00% | 6.00% | ||||||
Savings Plan [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Employer matching cash contributions | $ 2.6 | $ 2.5 | $ 2.4 | ||||||
Employer discretionary profit sharing contributions | 5.0 | 4.8 | 4.0 | ||||||
Employer discretionary profit sharing contributions paid | $ 1.1 | $ 0.9 | $ 3.9 | $ 3.7 | $ 3.1 | ||||
Employer discretionary profit sharing contributions, percentage of employee gross pay | 3.00% | 3.00% | 3.00% | ||||||
Savings Plan [Member] | Subsequent Event [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Employer discretionary profit sharing contributions paid | $ 1.1 | ||||||||
Savings Plan [Member] | Non Highly Compensated Participants [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Employee maximum contribution percentage | 25.00% | ||||||||
Savings Plan [Member] | Highly Compensated Participants [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Employee maximum contribution percentage | 6.00% | ||||||||
Related Party Transaction, Pension Plan Liabilities [Member] | |||||||||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||||||||
Receivables from affiliates | $ 3.0 | $ 3.0 | $ 2.7 | $ 3.0 |
STOCK COMPENSATION PLAN - Stock Option, and Restricted Stock and Restricted Stock Unit Activity (Details) - $ / shares |
1 Months Ended | 12 Months Ended | |||||
---|---|---|---|---|---|---|---|
Nov. 30, 2016 |
Feb. 29, 2016 |
Dec. 31, 2015 |
Feb. 28, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |||||||
Stock Options, Outstanding, beginning of period (in shares) | 0 | 800 | |||||
Stock Options, Forfeited and expired (in shares) | (800) | ||||||
Stock Options, Outstanding, end of period (in shares) | 0 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | |||||||
Weighted Average Exercise Price, Balance, beginning of period (in dollars per share) | $ 0.00 | $ 27.50 | |||||
Weighted Average Exercise Price, Forfeited and expired (in dollars per share) | 27.50 | ||||||
Weighted Average Exercise Price, Balance, end of period (in dollars per share) | $ 0.00 | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Shares withheld for withholding taxes (in shares) | 92,092 | 82,740 | 22,328 | ||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |||||||
Restricted Stock, Outstanding, beginning of period (in shares) | 764,800 | 773,400 | 120,000 | ||||
Restricted Stock, Granted (in shares) | 93,458 | 32,082 | 145,084 | 75,551 | 125,500 | 220,600 | 693,378 |
Restricted Stock, Vested (in shares) | (221,700) | (171,700) | (40,000) | ||||
Restricted Stock, Forfeited (in shares) | (257,600) | (57,500) | |||||
Restricted Stock, Outstanding, end of period (in shares) | 764,800 | 411,000 | 764,800 | 773,400 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Weighted Average Grant Date Fair Value [Abstract] | |||||||
Weighted Average Grant Date Fair Value, Outstanding, beginning of period (in dollars per share) | $ 30.39 | $ 30.37 | $ 24.80 | ||||
Weighted Average Grant Date Fair Value, Granted (in dollars per share) | 31.86 | 29.46 | 31.01 | ||||
Weighted Average Grant Date Fair Value, Vested (in dollars per share) | 29.51 | 29.09 | 24.80 | ||||
Weighted Average Grant Date Fair Value, Forfeited (in dollars per share) | 31.05 | 30.44 | |||||
Weighted Average Grant Date Fair Value, Outstanding, end of period (in dollars per share) | $ 30.39 | $ 30.78 | $ 30.39 | $ 30.37 |
STOCK COMPENSATION PLAN - Additional Information (Details) - USD ($) |
1 Months Ended | 12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|
Apr. 15, 2017 |
Apr. 12, 2017 |
Nov. 30, 2016 |
Feb. 29, 2016 |
Dec. 31, 2015 |
Feb. 28, 2015 |
Jul. 31, 2014 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Apr. 15, 2016 |
Apr. 12, 2016 |
|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Shares reserved for issuance (in shares) | 6,565,000 | |||||||||||
Shares remaining available for grants (in shares) | 4,000,000 | |||||||||||
Term of plan | 7 years | |||||||||||
Options expiration term | 7 years | |||||||||||
Options vesting service period, minimum | 1 year | |||||||||||
Options vesting service period, maximum | 4 years | |||||||||||
Options exercisable (in shares) | 0 | 0 | 0 | 0 | ||||||||
Vesting period | 3 years | |||||||||||
Closing price (usd per share) | $ 36.97 | $ 36.45 | ||||||||||
Segment Reconciling Items [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Compensation expense | $ 6,400,000 | $ 5,100,000 | $ 5,500,000 | |||||||||
Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted stock awards, vesting service period, minimum | 3 years | |||||||||||
Restricted stock awards, vesting service period, maximum | 5 years | |||||||||||
Restricted stock granted (in shares) | 93,458 | 32,082 | 145,084 | 75,551 | 125,500 | 220,600 | 693,378 | |||||
Vesting period | 3 years | 3 years | 4 years | 5 years | 5 years | |||||||
Fair value of restricted stock and restricted stock units vested | $ 6,500,000 | $ 5,000,000 | ||||||||||
Deferred stock-based compensation related to restricted stock awards | $ 21,800,000 | |||||||||||
Chief Executive Officer [Member] | Forecast [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 5 years | |||||||||||
Optional cash award per year | $ 3,000,000 | |||||||||||
Chief Executive Officer [Member] | Forecast [Member] | Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted stock granted (in shares) | 270,489 | |||||||||||
Common stock equivalent value to shares granted | $ 10,000,000 | |||||||||||
Chief Financial Officer [Member] | Forecast [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Vesting period | 5 years | |||||||||||
Optional cash award per year | $ 1,125,000 | |||||||||||
Chief Financial Officer [Member] | Forecast [Member] | Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Restricted stock granted (in shares) | 102,880 | |||||||||||
Common stock equivalent value to shares granted | $ 3,750,000 | |||||||||||
First Anniversary [Member] | Chief Executive Officer [Member] | Forecast [Member] | Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage | 20.00% | |||||||||||
First Anniversary [Member] | Chief Financial Officer [Member] | Forecast [Member] | Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage | 20.00% | |||||||||||
Second Anniversary [Member] | Chief Executive Officer [Member] | Forecast [Member] | Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage | 20.00% | |||||||||||
Second Anniversary [Member] | Chief Financial Officer [Member] | Forecast [Member] | Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage | 20.00% | |||||||||||
Third Anniversary [Member] | Chief Executive Officer [Member] | Forecast [Member] | Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage | 20.00% | |||||||||||
Third Anniversary [Member] | Chief Financial Officer [Member] | Forecast [Member] | Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage | 20.00% | |||||||||||
Fourth Anniversary [Member] | Chief Executive Officer [Member] | Forecast [Member] | Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage | 20.00% | |||||||||||
Fourth Anniversary [Member] | Chief Financial Officer [Member] | Forecast [Member] | Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage | 20.00% | |||||||||||
Fifth Anniversary [Member] | Chief Executive Officer [Member] | Forecast [Member] | Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage | 20.00% | |||||||||||
Fifth Anniversary [Member] | Chief Financial Officer [Member] | Forecast [Member] | Restricted Stock [Member] | ||||||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||||||
Award vesting percentage | 20.00% |
INCOME TAXES - Income Before Income Taxes and Provision for Income Taxes (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||
Income (loss) from continuing operations before income taxes: | |||||||
United States | $ 13.6 | $ 123.4 | $ 146.9 | ||||
Foreign | 4.3 | (3.7) | (19.7) | ||||
Income from continuing operations before income taxes | 17.9 | 119.7 | 127.2 | ||||
Provision for (benefit from) income taxes: | |||||||
United States federal | 11.0 | 40.9 | 58.2 | ||||
State and local | 2.1 | 16.7 | 17.9 | ||||
Foreign | 15.6 | (3.2) | 5.1 | ||||
Provision for income taxes | 28.7 | 54.4 | 81.2 | ||||
Current: | |||||||
United States federal | 13.1 | (2.7) | 2.6 | ||||
State and local | 2.3 | 3.9 | 3.5 | ||||
Foreign | 20.2 | 21.7 | 7.2 | ||||
Current income tax expense (benefit) | 35.6 | 22.9 | 13.3 | ||||
Deferred: | |||||||
United States federal | (2.1) | 43.6 | 55.6 | ||||
State and local | (0.2) | 12.8 | 14.4 | ||||
Foreign | (4.6) | (24.9) | (2.1) | ||||
Provision for deferred income taxes | $ (6.9) | $ 31.5 | [1] | $ 67.9 | [1] | ||
|
INCOME TAXES - Reconciliation of Tax Expense to Statutory Federal Income Tax Rate (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Abstract] | |||
Computed income tax expense | $ 6.3 | $ 41.9 | $ 44.5 |
State and local taxes, net of U.S. federal income tax benefit | 1.7 | 10.9 | 20.5 |
Foreign and U.S. tax effects attributable to operations outside the U.S. | 3.1 | 13.6 | 5.8 |
Net establishment (release) of valuation allowance | 2.0 | (15.5) | 6.4 |
Foreign dividends and earnings taxable in the U.S. | 1.7 | 3.2 | 5.4 |
Acquisition costs for which there is no tax benefit | 0.7 | 0.0 | 0.0 |
Other | 4.3 | 0.3 | (1.4) |
Provision for income taxes | $ 28.7 | $ 54.4 | $ 81.2 |
INCOME TAXES - Deferred Taxes (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
---|---|---|
Deferred tax assets: | ||
Inventories | $ 30.9 | $ 7.3 |
Net operating loss carryforwards - U.S. | 133.0 | 27.6 |
Net operating loss carryforwards - foreign | 50.5 | 51.4 |
Employee benefits | 91.7 | 96.7 |
Sales related reserves | 23.9 | 25.8 |
Foreign currency translation adjustment | 9.9 | 11.0 |
Other | 85.2 | 52.7 |
Total gross deferred tax assets | 425.1 | 272.5 |
Less valuation allowance | (81.4) | (47.1) |
Total deferred tax assets, net of valuation allowance | 343.7 | 225.4 |
Deferred tax liabilities: | ||
Plant, equipment and other assets | (26.0) | (29.9) |
Intangibles | (132.4) | (82.4) |
Other | (57.6) | (63.2) |
Total gross deferred tax liabilities | (216.0) | (175.5) |
Net deferred tax assets | $ 127.7 | $ 49.9 |
INCOME TAXES - Unrecognized Tax Benefits (Details) - USD ($) $ in Millions |
12 Months Ended | |
---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||
Beginning balance | $ 65.0 | $ 62.0 |
Increase based on tax positions taken in a prior year | 25.9 | 5.6 |
Decrease based on tax positions taken in a prior year | (1.3) | (5.8) |
Increase based on tax positions taken in the current year | 9.3 | 8.5 |
Decrease resulting from the lapse of statutes of limitations | (5.6) | (5.3) |
Ending balance | $ 93.3 | $ 65.0 |
INCOME TAXES - Additional Information (Detail) - USD ($) |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2017 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Income Tax Disclosure [Line Items] | ||||
Deferred tax valuation allowance increase (decrease) | $ (34,300,000) | $ (10,000,000) | ||
Tax loss carryforwards | 491,300,000 | |||
Tax loss carryforwards - expiring 2017 | 200,000 | |||
Tax loss carryforwards - expiring 2018 | 4,700,000 | |||
Tax loss carryforwards - expiring 2019 | 16,600,000 | |||
Tax loss carryforwards - expiring 2020 and beyond | 302,100,000 | |||
Tax loss carryforwards - unlimited | 167,700,000 | |||
Increase (decrease) in accrued interest and penalties | (300,000) | (1,000,000) | $ (900,000) | |
Unrecognized tax benefits | 93,300,000 | 65,000,000 | $ 62,000,000 | |
Unrecognized tax benefits - accrued interest and penalties | 10,600,000 | 10,300,000 | ||
Unrecognized tax benefits that would affect effective tax rate | 57,000,000 | |||
Unrecognized tax benefits that would affect deferred tax accounts | 36,300,000 | |||
Increase in unrecognized tax benefits is reasonably possible | 9,600,000 | |||
Undistributed earnings of foreign subsidiaries | 321,900,000 | |||
Federal tax payments from Products Corporation to Revlon, Inc. | 0 | 0 | ||
Forecast [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Federal tax payments from Products Corporation to Revlon, Inc. | $ 0 | |||
Foreign [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Deferred tax valuation allowance increase (decrease) | $ 18,400,000 | |||
Tax loss carryforwards | 215,600,000 | |||
Domestic [Member] | ||||
Income Tax Disclosure [Line Items] | ||||
Tax loss carryforwards | $ 275,700,000 |
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions |
12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | $ (491.6) | [1] | $ (557.0) | $ (516.5) | ||||||
Other comprehensive income | [2] | (6.4) | (2.1) | (93.4) | ||||||
Ending balance | (506.8) | (491.6) | [1] | (557.0) | ||||||
Accumulated Other Comprehensive Loss [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (245.3) | (243.2) | (149.8) | |||||||
Other comprehensive income | [2] | (6.4) | (2.1) | (93.4) | ||||||
Ending balance | (251.7) | (245.3) | (243.2) | |||||||
Foreign Currency Translation [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (23.5) | (5.4) | 19.2 | |||||||
Other comprehensive income | (0.5) | (18.1) | (24.6) | |||||||
Ending balance | (24.0) | (23.5) | (5.4) | |||||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||||||||||
Other comprehensive income (loss), tax expense (benefit) | 1.1 | 5.1 | 2.1 | |||||||
Actuarial (Loss) Gain on Post-retirement Benefits [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (217.7) | (235.6) | (170.5) | |||||||
Other comprehensive income | (6.7) | |||||||||
Ending balance | (224.4) | (217.7) | (235.6) | |||||||
Actuarial (Loss) Gain on Post-retirement Benefits - Amortization of pension related costs [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Other comprehensive income | 7.6 | 7.2 | 4.5 | |||||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||||||||||
Other comprehensive income (loss), tax expense (benefit) | 1.3 | (1.3) | (0.1) | |||||||
Actuarial (Loss) Gain on Post-retirement Benefits - Pension re-measurement [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Other comprehensive income | (14.3) | (6.9) | (69.6) | |||||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||||||||||
Other comprehensive income (loss), tax expense (benefit) | 4.1 | 3.3 | 42.0 | |||||||
Actuarial (Loss) Gain on Post-retirement Benefits - Settlement of certain pension liabilities [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Other comprehensive income | 17.3 | |||||||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||||||||||
Other comprehensive income (loss), tax expense (benefit) | (3.7) | |||||||||
Actuarial (Loss) Gain on Post-retirement Benefits - Other [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Other comprehensive income | 0.3 | |||||||||
Deferred Gain (Loss) - Hedging [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (3.8) | (2.2) | 1.5 | |||||||
Other comprehensive income | 0.8 | (1.6) | (3.7) | |||||||
Ending balance | (3.0) | (3.8) | (2.2) | |||||||
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent, Parenthetical Disclosures [Abstract] | ||||||||||
Other comprehensive income (loss), tax expense (benefit) | 0.5 | 1.0 | 2.3 | |||||||
Other [Member] | ||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||||||
Beginning balance | (0.3) | (0.3) | 0.0 | |||||||
Other comprehensive income | 0.0 | (0.3) | ||||||||
Ending balance | $ (0.3) | $ (0.3) | $ (0.3) | |||||||
|
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassification out of Accumulated Comprehensive Loss (Details) - USD ($) $ in Millions |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
|||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | $ (491.6) | [1] | $ (557.0) | |||
Ending balance | (506.8) | (491.6) | [1] | |||
Deferred Gain (Loss) - Hedging [Member] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | (3.8) | (2.2) | ||||
Ending balance | (3.0) | (3.8) | ||||
Deferred Gain (Loss) - Hedging [Member] | Interest rate swap [Member] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Beginning balance | (3.8) | (2.2) | ||||
Ending balance | (3.0) | (3.8) | ||||
Deferred Gain (Loss) - Hedging [Member] | Interest rate swap [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Change in fair value, net of tax | (1.9) | (3.2) | ||||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||||
Change in fair value - tax expense (benefit) | 1.1 | 2.0 | ||||
Deferred Gain (Loss) - Hedging [Member] | Interest rate swap [Member] | Interest expense [Member] | Reclassification out of Accumulated Other Comprehensive Income (Loss) [Member] | ||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||||||
Reclassifications into earnings, net of tax | 2.7 | 1.6 | ||||
Other Comprehensive Income (Loss), Tax [Abstract] | ||||||
Reclassifications into earnings - tax expense (benefit) | $ (1.6) | $ (1.0) | ||||
|
SEGMENT DATA AND RELATED INFORMATION - Net Sales and Segment Profit (Details) - USD ($) |
1 Months Ended | 3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2015 |
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net sales | $ 800,700,000 | $ 604,800,000 | $ 488,900,000 | $ 439,600,000 | $ 521,900,000 | $ 471,500,000 | $ 482,400,000 | $ 438,500,000 | $ 2,334,000,000 | $ 1,914,300,000 | $ 1,941,000,000 | |||||
Segment profit | 164,700,000 | 224,800,000 | 245,300,000 | |||||||||||||
Depreciation and amortization | 123,200,000 | 103,200,000 | [1] | 102,600,000 | [1] | |||||||||||
Non-Operating items: | ||||||||||||||||
Restructuring and related charges | 34,000,000 | 10,500,000 | 21,300,000 | |||||||||||||
Acquisition and integration costs | 33,500,000 | 43,200,000 | 8,000,000 | 6,400,000 | ||||||||||||
Impairment charge | 16,700,000 | 9,700,000 | 0 | |||||||||||||
Interest expense | 105,200,000 | 83,300,000 | 84,400,000 | |||||||||||||
Amortization of debt issuance costs | 6,800,000 | 5,700,000 | [1] | 5,500,000 | [1] | |||||||||||
Loss on early extinguishment of debt, net | $ 16,900,000 | 16,900,000 | 0 | [1] | 2,000,000 | [1] | ||||||||||
Foreign currency losses, net | 18,500,000 | 15,700,000 | 25,000,000 | |||||||||||||
Miscellaneous, net | (600,000) | 400,000 | 1,200,000 | |||||||||||||
Income from continuing operations before income taxes | 17,900,000 | 119,700,000 | 127,200,000 | |||||||||||||
Operating Segments [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net sales | 2,334,000,000 | 1,914,300,000 | 1,941,000,000 | |||||||||||||
Segment profit | 514,100,000 | 465,500,000 | 444,200,000 | |||||||||||||
Corporate, Non-Segment [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Unallocated corporate expenses(a) | 89,400,000 | 79,000,000 | 59,200,000 | |||||||||||||
Segment Reconciling Items [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Depreciation and amortization | 123,200,000 | 103,200,000 | 102,600,000 | |||||||||||||
Non-cash stock compensation expense | 6,400,000 | 5,100,000 | 5,500,000 | |||||||||||||
Non-Operating items: | ||||||||||||||||
Restructuring and related charges | 36,800,000 | 11,600,000 | 22,600,000 | |||||||||||||
Acquisition and integration costs | 43,200,000 | 8,000,000 | 6,400,000 | |||||||||||||
Inventory purchase accounting adjustment, cost of sales | 200,000 | 900,000 | 2,600,000 | |||||||||||||
Pension Lump sum settlement | 0 | 20,700,000 | 0 | |||||||||||||
Impairment charge | 23,400,000 | 9,700,000 | 0 | |||||||||||||
Deferred Compensation related to CBB Acquisition | 3,500,000 | 2,500,000 | 0 | |||||||||||||
Consumer [Member] | Operating Segments [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net sales | 1,389,800,000 | 1,414,800,000 | 1,438,300,000 | |||||||||||||
Segment profit | 349,200,000 | 360,200,000 | 339,400,000 | |||||||||||||
Non-Operating items: | ||||||||||||||||
Impairment charge | 0 | 9,700,000 | ||||||||||||||
Professional [Member] | Operating Segments [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net sales | 476,500,000 | 471,100,000 | 502,700,000 | |||||||||||||
Segment profit | 99,400,000 | 103,900,000 | 104,800,000 | |||||||||||||
Non-Operating items: | ||||||||||||||||
Impairment charge | 0 | 0 | ||||||||||||||
Elizabeth Arden [Member] | Operating Segments [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net sales | 441,400,000 | 0 | 0 | |||||||||||||
Segment profit | 68,200,000 | 0 | 0 | |||||||||||||
Other [Member] | Operating Segments [Member] | ||||||||||||||||
Segment Reporting Information [Line Items] | ||||||||||||||||
Net sales | 26,300,000 | 28,400,000 | 0 | |||||||||||||
Segment profit | (2,700,000) | 1,400,000 | 0 | |||||||||||||
Non-Operating items: | ||||||||||||||||
Impairment charge | 16,700,000 | 0 | ||||||||||||||
Elizabeth Arden [Member] | ||||||||||||||||
Non-Operating items: | ||||||||||||||||
Acquisition and integration costs | 40,700,000 | |||||||||||||||
Elizabeth Arden [Member] | Segment Reconciling Items [Member] | ||||||||||||||||
Non-Operating items: | ||||||||||||||||
Elizabeth Arden 2016 Business Transformation Program | 2,600,000 | 0 | 0 | |||||||||||||
Inventory purchase accounting adjustment, cost of sales | 20,700,000 | 0 | 0 | |||||||||||||
Pension Plans [Member] | ||||||||||||||||
Non-Operating items: | ||||||||||||||||
Pension Lump sum settlement | $ 53,400,000 | $ 0 | $ 53,400,000 | |||||||||||||
Pension Plans [Member] | Corporate, Non-Segment [Member] | ||||||||||||||||
Non-Operating items: | ||||||||||||||||
Pension expense | $ 8,200,000 | |||||||||||||||
|
SEGMENT DATA AND RELATED INFORMATION - Schedule of Net Sales and Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 800.7 | $ 604.8 | $ 488.9 | $ 439.6 | $ 521.9 | $ 471.5 | $ 482.4 | $ 438.5 | $ 2,334.0 | $ 1,914.3 | $ 1,941.0 |
Long-lived assets, net | 1,749.7 | 1,087.1 | 1,749.7 | 1,087.1 | |||||||
United States [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 1,271.2 | $ 1,043.7 | $ 1,021.9 | ||||||||
Percentage of net sales by geographic location (percent) | 54.00% | 55.00% | 53.00% | ||||||||
Long-lived assets, net | $ 1,494.3 | $ 854.7 | $ 1,494.3 | $ 854.7 | |||||||
Percentage of long-lived assets, net by geographic location (percent) | 85.00% | 79.00% | 85.00% | 79.00% | |||||||
International [Member] | |||||||||||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||||||||||
Net sales | $ 1,062.8 | $ 870.6 | $ 919.1 | ||||||||
Percentage of net sales by geographic location (percent) | 46.00% | 45.00% | 47.00% | ||||||||
Long-lived assets, net | $ 255.4 | $ 232.4 | $ 255.4 | $ 232.4 | |||||||
Percentage of long-lived assets, net by geographic location (percent) | 15.00% | 21.00% | 15.00% | 21.00% |
SEGMENT DATA AND RELATED INFORMATION - Schedule of Net Sales by Classes of Similar Products (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 800.7 | $ 604.8 | $ 488.9 | $ 439.6 | $ 521.9 | $ 471.5 | $ 482.4 | $ 438.5 | $ 2,334.0 | $ 1,914.3 | $ 1,941.0 |
Color cosmetics [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 998.3 | $ 1,022.4 | $ 1,030.1 | ||||||||
Percentage of net sales by classes of similar products | 43.00% | 53.00% | 53.00% | ||||||||
Hair care [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 544.3 | $ 522.1 | $ 541.7 | ||||||||
Percentage of net sales by classes of similar products | 23.00% | 27.00% | 28.00% | ||||||||
Fragrance [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 408.4 | $ 80.8 | $ 54.1 | ||||||||
Percentage of net sales by classes of similar products | 17.00% | 4.00% | 3.00% | ||||||||
Beauty care [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 294.4 | $ 277.5 | $ 299.7 | ||||||||
Percentage of net sales by classes of similar products | 13.00% | 15.00% | 15.00% | ||||||||
Skin care [Member] | |||||||||||
Revenue from External Customer [Line Items] | |||||||||||
Net sales | $ 88.6 | $ 11.5 | $ 15.4 | ||||||||
Percentage of net sales by classes of similar products | 4.00% | 1.00% | 1.00% |
SEGMENT DATA AND RELATED INFORMATION - Additional Information (Details) - country |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Outside of the U.S. [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of countries in which entity operates | 26 | ||
Customer concentration risk [Member] | Net sales [Member] | Walmart [Member] | |||
Segment Reporting Information [Line Items] | |||
Concentration risk percentage | 17.00% | 18.00% | 16.00% |
COMMITMENTS AND CONTINGENCIES - Schedule of Minimum Rental Commitments Under Noncancelable Leases (Details) $ in Millions |
Dec. 31, 2016
USD ($)
|
---|---|
Capital leases | |
Total | $ 3.5 |
2017 | 1.9 |
2018 | 1.0 |
2019 | 0.5 |
2020 | 0.1 |
2021 | 0.0 |
Thereafter | 0.0 |
Operating leases | |
Total | 216.0 |
2017 | 38.9 |
2018 | 34.7 |
2019 | 30.0 |
2020 | 21.8 |
2021 | 20.0 |
Thereafter | $ 70.6 |
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions |
12 Months Ended | |||
---|---|---|---|---|
Aug. 04, 2016
lawsuit
|
Dec. 31, 2016
USD ($)
|
Dec. 31, 2015
USD ($)
|
Dec. 31, 2014
USD ($)
|
|
Commitments and Contingencies Disclosure [Abstract] | ||||
Rental expense | $ | $ 18.5 | $ 18.6 | $ 26.6 | |
Number of lawsuits | lawsuit | 5 |
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) |
1 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Apr. 30, 2016 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Related Party Transaction [Line Items] | ||||
Reimbursement Agreements termination notice period | 90 days | |||
Insurance program renewal period | 5 years | |||
Reimbursements [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses related party | $ 1,500,000 | $ 2,100,000 | $ 3,800,000 | |
Payable to related party | 200,000 | |||
Receivable from related party | 100,000 | |||
Revlon Holdings [Member] | ||||
Related Party Transaction [Line Items] | ||||
Reimbursements from related party | 500,000 | 300,000 | $ 200,000 | |
Receivable from related party | 0 | 200,000 | ||
Director [Member] | Transition and Separation Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Stock repurchased (usd per share) | $ 36.83 | |||
Consideration paid | $ 1,600,000 | |||
Forfeiture of restricted stock (shares) | 65,703 | |||
Majority Shareholder [Member] | Related Party Expense, Coupon Redemptions [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses related party | $ 40,900,000 | 32,900,000 | ||
Majority Shareholder [Member] | Related Party Expense, Coupon Redemption Processing [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses related party | 400,000 | |||
Majority Shareholder [Member] | Related Party Expense, Other Fees (less than) [Member] | ||||
Related Party Transaction [Line Items] | ||||
Expenses related party | $ 100,000 | |||
Class A Common Stock [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage ownership of outstanding common stock | 77.00% | |||
Percentage ownership of voting capital stock | 77.00% | |||
Class A Common Stock [Member] | Director [Member] | Transition and Separation Agreement [Member] | ||||
Related Party Transaction [Line Items] | ||||
Stock repurchased (in shares) | 72,895 | |||
Stock repurchased | $ 2,700,000 | |||
Products Corporation [Member] | ||||
Related Party Transaction [Line Items] | ||||
Percentage ownership of capital stock | 66.00% |
QUARTERLY RESULTS OF OPERATIONS (Details) - USD ($) |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||
Quarterly Results Of Operations [Line Items] | |||||||||||||||
Net sales | $ 800,700,000 | $ 604,800,000 | $ 488,900,000 | $ 439,600,000 | $ 521,900,000 | $ 471,500,000 | $ 482,400,000 | $ 438,500,000 | $ 2,334,000,000 | $ 1,914,300,000 | $ 1,941,000,000 | ||||
Gross profit | 452,400,000 | 361,400,000 | 317,400,000 | 285,700,000 | 325,500,000 | 303,700,000 | 321,100,000 | 296,200,000 | 1,416,900,000 | 1,246,500,000 | 1,272,700,000 | ||||
(Loss) income from continuing operations, net of taxes | (32,200,000) | (3,000,000) | 11,800,000 | 12,600,000 | 27,700,000 | 9,400,000 | 27,500,000 | 700,000 | (10,800,000) | 65,300,000 | 46,000,000 | ||||
(Loss) income from discontinued operations, net of taxes | (2,600,000) | (200,000) | (2,500,000) | 400,000 | (1,400,000) | (1,700,000) | 0 | (100,000) | (4,900,000) | (3,200,000) | 1,300,000 | ||||
Net (loss) income | (34,800,000) | (3,200,000) | $ 9,300,000 | $ 13,000,000 | 26,300,000 | $ 7,700,000 | $ 27,500,000 | 600,000 | (15,700,000) | 62,100,000 | [1] | 47,300,000 | [1] | ||
Restructuring charges and other, net | 34,000,000 | 10,500,000 | 21,300,000 | ||||||||||||
Goodwill impairment charge | 16,700,000 | 9,700,000 | 0 | ||||||||||||
Impairment of finite-lived intangible assets | 6,700,000 | 0 | 0 | ||||||||||||
Acquisition and integration costs | 33,500,000 | 43,200,000 | 8,000,000 | 6,400,000 | |||||||||||
Gain (loss) on early extinguishment of debt | $ (16,900,000) | (16,900,000) | 0 | [1] | (2,000,000) | [1] | |||||||||
Foreign currency losses, net - revaluation of intercompany payables | 15,900,000 | ||||||||||||||
Foreign currency losses from re-measurement of Venezuelan balance sheet | $ 1,900,000 | 20,600,000 | 19,500,000 | [1] | $ 25,500,000 | [1] | |||||||||
Lump sum settlement charge | 20,700,000 | ||||||||||||||
Elizabeth Arden Integration Restructuring Actions [Member] | |||||||||||||||
Quarterly Results Of Operations [Line Items] | |||||||||||||||
Restructuring charges and other, net | 31,700,000 | ||||||||||||||
2015 Efficiency Program [Member] | |||||||||||||||
Quarterly Results Of Operations [Line Items] | |||||||||||||||
Restructuring charges and other, net | 9,500,000 | $ 1,300,000 | $ 9,500,000 | ||||||||||||
Other reporting unit [Member] | |||||||||||||||
Quarterly Results Of Operations [Line Items] | |||||||||||||||
Goodwill impairment charge | $ 16,700,000 | ||||||||||||||
Global Color Brands reporting unit [Member] | |||||||||||||||
Quarterly Results Of Operations [Line Items] | |||||||||||||||
Goodwill impairment charge | $ 9,700,000 | ||||||||||||||
|
GUARANTOR FINANCIAL INFORMATION Condensed Balance Sheet Statement (Details) - USD ($) $ in Millions |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
Dec. 31, 2013 |
|||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Cash and cash equivalents | $ 186.8 | $ 326.9 | [1],[2] | $ 275.3 | [2] | $ 244.1 | [2] | ||||
Trade receivables, less allowances for doubtful accounts | 423.9 | 244.9 | [1] | ||||||||
Inventories | 424.6 | 183.8 | [1] | ||||||||
Prepaid expenses and other | 217.6 | 170.7 | |||||||||
Intercompany receivables | 0.0 | 0.0 | |||||||||
Investment in subsidiaries | 0.0 | 0.0 | |||||||||
Property, plant and equipment, net | 320.5 | 215.3 | [1] | ||||||||
Deferred income taxes | 136.1 | 49.8 | [1] | ||||||||
Goodwill | 689.5 | 469.7 | [1] | 464.1 | |||||||
Intangible assets, net | 636.6 | 318.0 | [1] | ||||||||
Other assets | 103.1 | 84.1 | [1] | ||||||||
Total assets | 3,138.7 | 2,063.2 | [1] | ||||||||
Short-term borrowings | 10.8 | 11.3 | [1] | ||||||||
Current portion of long-term debt | 18.1 | 30.0 | [1] | ||||||||
Accounts payable | 296.9 | 201.3 | [1] | ||||||||
Accrued expenses and other | 382.7 | 272.4 | [1] | ||||||||
Intercompany payables | 0.0 | 0.0 | |||||||||
Long-term debt | 2,663.1 | 1,783.7 | [1] | ||||||||
Other long-term liabilities | 273.9 | 256.1 | |||||||||
Total liabilities | 3,645.5 | 2,554.8 | |||||||||
Total stockholder's deficiency | (506.8) | (491.6) | [1] | (557.0) | (516.5) | ||||||
Total liabilities and stockholder's deficiency | 3,138.7 | 2,063.2 | [1] | ||||||||
Eliminations [Member] | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Cash and cash equivalents | 0.0 | 0.0 | 0.0 | 0.0 | |||||||
Trade receivables, less allowances for doubtful accounts | 0.0 | 0.0 | |||||||||
Inventories | 0.0 | 0.0 | |||||||||
Prepaid expenses and other | 0.0 | 0.0 | |||||||||
Intercompany receivables | (1,553.6) | (1,153.8) | |||||||||
Investment in subsidiaries | (1,613.1) | (607.3) | |||||||||
Property, plant and equipment, net | 0.0 | 0.0 | |||||||||
Deferred income taxes | 0.0 | 0.0 | |||||||||
Goodwill | 0.0 | 0.0 | |||||||||
Intangible assets, net | 0.0 | 0.0 | |||||||||
Other assets | 0.0 | 0.0 | |||||||||
Total assets | (3,166.7) | (1,761.1) | |||||||||
Short-term borrowings | 0.0 | 0.0 | |||||||||
Current portion of long-term debt | 0.0 | 0.0 | |||||||||
Accounts payable | 0.0 | 0.0 | |||||||||
Accrued expenses and other | 0.0 | 0.0 | |||||||||
Intercompany payables | (1,553.6) | (1,153.8) | |||||||||
Long-term debt | 0.0 | 0.0 | |||||||||
Other long-term liabilities | 0.0 | 0.0 | |||||||||
Total liabilities | (1,553.6) | (1,153.8) | |||||||||
Total stockholder's deficiency | (1,613.1) | (607.3) | |||||||||
Total liabilities and stockholder's deficiency | (3,166.7) | (1,761.1) | |||||||||
Products Corporation [Member] | Reportable Legal Entities [Member] | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Cash and cash equivalents | 20.0 | 141.5 | 104.2 | 141.3 | |||||||
Trade receivables, less allowances for doubtful accounts | 104.6 | 79.7 | |||||||||
Inventories | 96.8 | 88.1 | |||||||||
Prepaid expenses and other | 155.3 | 136.9 | |||||||||
Intercompany receivables | 790.1 | 692.1 | |||||||||
Investment in subsidiaries | 1,610.1 | 591.0 | |||||||||
Property, plant and equipment, net | 142.1 | 124.8 | |||||||||
Deferred income taxes | 26.2 | 5.8 | |||||||||
Goodwill | 188.7 | 182.4 | |||||||||
Intangible assets, net | 49.0 | 56.6 | |||||||||
Other assets | 50.8 | 49.4 | |||||||||
Total assets | 3,233.7 | 2,148.3 | |||||||||
Short-term borrowings | 0.0 | 0.0 | |||||||||
Current portion of long-term debt | 18.0 | 29.9 | |||||||||
Accounts payable | 99.7 | 85.3 | |||||||||
Accrued expenses and other | 183.0 | 175.1 | |||||||||
Intercompany payables | 554.5 | 360.4 | |||||||||
Long-term debt | 2,662.6 | 1,783.2 | |||||||||
Other long-term liabilities | 222.7 | 206.0 | |||||||||
Total liabilities | 3,740.5 | 2,639.9 | |||||||||
Total stockholder's deficiency | (506.8) | (491.6) | |||||||||
Total liabilities and stockholder's deficiency | 3,233.7 | 2,148.3 | |||||||||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Cash and cash equivalents | 34.3 | 93.0 | 88.1 | 14.5 | |||||||
Trade receivables, less allowances for doubtful accounts | 104.8 | 44.5 | |||||||||
Inventories | 150.5 | 34.5 | |||||||||
Prepaid expenses and other | 15.1 | 3.3 | |||||||||
Intercompany receivables | 635.7 | 366.5 | |||||||||
Investment in subsidiaries | 3.0 | 16.3 | |||||||||
Property, plant and equipment, net | 84.0 | 28.1 | |||||||||
Deferred income taxes | (1.1) | 0.0 | |||||||||
Goodwill | 251.7 | 30.0 | |||||||||
Intangible assets, net | 149.1 | 156.7 | |||||||||
Other assets | 29.4 | 9.6 | |||||||||
Total assets | 1,456.5 | 782.5 | |||||||||
Short-term borrowings | 0.0 | 0.0 | |||||||||
Current portion of long-term debt | 0.0 | 0.0 | |||||||||
Accounts payable | 90.7 | 29.2 | |||||||||
Accrued expenses and other | 63.5 | 18.9 | |||||||||
Intercompany payables | 530.9 | 401.0 | |||||||||
Long-term debt | 0.0 | 0.0 | |||||||||
Other long-term liabilities | 20.3 | 0.8 | |||||||||
Total liabilities | 705.4 | 449.9 | |||||||||
Total stockholder's deficiency | 751.1 | 332.6 | |||||||||
Total liabilities and stockholder's deficiency | 1,456.5 | 782.5 | |||||||||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||||||||||
Condensed Balance Sheet Statements, Captions [Line Items] | |||||||||||
Cash and cash equivalents | 132.5 | 92.4 | $ 83.0 | $ 88.3 | |||||||
Trade receivables, less allowances for doubtful accounts | 214.5 | 120.7 | |||||||||
Inventories | 177.3 | 61.2 | |||||||||
Prepaid expenses and other | 47.2 | 30.5 | |||||||||
Intercompany receivables | 127.8 | 95.2 | |||||||||
Investment in subsidiaries | 0.0 | 0.0 | |||||||||
Property, plant and equipment, net | 94.4 | 62.4 | |||||||||
Deferred income taxes | 111.0 | 44.0 | |||||||||
Goodwill | 249.1 | 257.3 | |||||||||
Intangible assets, net | 438.5 | 104.7 | |||||||||
Other assets | 22.9 | 25.1 | |||||||||
Total assets | 1,615.2 | 893.5 | |||||||||
Short-term borrowings | 10.8 | 11.3 | |||||||||
Current portion of long-term debt | 0.1 | 0.1 | |||||||||
Accounts payable | 106.5 | 86.8 | |||||||||
Accrued expenses and other | 136.2 | 78.4 | |||||||||
Intercompany payables | 468.2 | 392.4 | |||||||||
Long-term debt | 0.5 | 0.5 | |||||||||
Other long-term liabilities | 30.9 | 49.3 | |||||||||
Total liabilities | 753.2 | 618.8 | |||||||||
Total stockholder's deficiency | 862.0 | 274.7 | |||||||||
Total liabilities and stockholder's deficiency | $ 1,615.2 | $ 893.5 | |||||||||
|
GUARANTOR FINANCIAL INFORMATION Statements of Income and Comprehensive Income (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Sep. 30, 2016 |
Jun. 30, 2016 |
Mar. 31, 2016 |
Dec. 31, 2015 |
Sep. 30, 2015 |
Jun. 30, 2015 |
Mar. 31, 2015 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||
Net sales | $ 800.7 | $ 604.8 | $ 488.9 | $ 439.6 | $ 521.9 | $ 471.5 | $ 482.4 | $ 438.5 | $ 2,334.0 | $ 1,914.3 | $ 1,941.0 | ||||
Cost of sales | 917.1 | 667.8 | 668.3 | ||||||||||||
Gross profit | 452.4 | 361.4 | 317.4 | 285.7 | 325.5 | 303.7 | 321.1 | 296.2 | 1,416.9 | 1,246.5 | 1,272.7 | ||||
Selling, general and administrative expenses | 1,151.6 | 993.5 | 999.7 | ||||||||||||
Acquisition and integration costs | 33.5 | 43.2 | 8.0 | 6.4 | |||||||||||
Restructuring charges and other, net | 34.0 | 10.5 | 21.3 | ||||||||||||
Impairment charge | 23.4 | 9.7 | [1] | 0.0 | [1] | ||||||||||
Operating income | 164.7 | 224.8 | 245.3 | ||||||||||||
Intercompany interest, net | 0.0 | 0.0 | 0.0 | ||||||||||||
Interest expense | 105.2 | 83.3 | 84.4 | ||||||||||||
Amortization of debt issuance costs | 6.8 | 5.7 | 5.5 | ||||||||||||
Loss on early extinguishment of debt, net | 16.9 | 16.9 | 0.0 | [1] | 2.0 | [1] | |||||||||
Foreign currency losses (gains), net | 18.5 | 15.7 | 25.0 | ||||||||||||
Miscellaneous, net | (0.6) | 0.4 | 1.2 | ||||||||||||
Other expenses, net | 146.8 | 105.1 | 118.1 | ||||||||||||
Income from continuing operations before income taxes | 17.9 | 119.7 | 127.2 | ||||||||||||
Provision for income taxes | 28.7 | 54.4 | 81.2 | ||||||||||||
(Loss) income from continuing operations, net of taxes | (32.2) | (3.0) | 11.8 | 12.6 | 27.7 | 9.4 | 27.5 | 0.7 | (10.8) | 65.3 | 46.0 | ||||
(Loss) income from discontinued operations, net of taxes | (2.6) | (0.2) | (2.5) | 0.4 | (1.4) | (1.7) | 0.0 | (0.1) | (4.9) | (3.2) | 1.3 | ||||
Equity in income (loss) of subsidiaries | 0.0 | 0.0 | 0.0 | ||||||||||||
Net (loss) income | $ (34.8) | $ (3.2) | $ 9.3 | $ 13.0 | $ 26.3 | $ 7.7 | $ 27.5 | $ 0.6 | (15.7) | 62.1 | [1] | 47.3 | [1] | ||
Other comprehensive (loss) income | (6.4) | (2.1) | (93.4) | ||||||||||||
Total comprehensive (loss) income | (22.1) | 60.0 | (46.1) | ||||||||||||
Eliminations [Member] | |||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||
Net sales | (8.9) | (206.2) | (188.4) | ||||||||||||
Cost of sales | (8.9) | (206.2) | (188.4) | ||||||||||||
Gross profit | 0.0 | 0.0 | 0.0 | ||||||||||||
Selling, general and administrative expenses | 0.0 | 0.0 | 0.0 | ||||||||||||
Acquisition and integration costs | 0.0 | 0.0 | 0.0 | ||||||||||||
Restructuring charges and other, net | 0.0 | 0.0 | 0.0 | ||||||||||||
Impairment charge | 0.0 | 0.0 | |||||||||||||
Operating income | 0.0 | 0.0 | 0.0 | ||||||||||||
Intercompany interest, net | 0.0 | 0.0 | 0.0 | ||||||||||||
Interest expense | 0.0 | 0.0 | 0.0 | ||||||||||||
Amortization of debt issuance costs | 0.0 | 0.0 | 0.0 | ||||||||||||
Loss on early extinguishment of debt, net | 0.0 | 0.0 | |||||||||||||
Foreign currency losses (gains), net | 0.0 | 0.0 | 0.0 | ||||||||||||
Miscellaneous, net | 0.0 | 0.0 | 0.0 | ||||||||||||
Other expenses, net | 0.0 | 0.0 | 0.0 | ||||||||||||
Income from continuing operations before income taxes | 0.0 | 0.0 | 0.0 | ||||||||||||
Provision for income taxes | 0.0 | 0.0 | 0.0 | ||||||||||||
(Loss) income from continuing operations, net of taxes | 0.0 | 0.0 | 0.0 | ||||||||||||
(Loss) income from discontinued operations, net of taxes | 0.0 | 0.0 | 0.0 | ||||||||||||
Equity in income (loss) of subsidiaries | 3.1 | (82.4) | (71.7) | ||||||||||||
Net (loss) income | 3.1 | (82.4) | (71.7) | ||||||||||||
Other comprehensive (loss) income | 5.4 | 20.3 | 6.5 | ||||||||||||
Total comprehensive (loss) income | 8.5 | (62.1) | (65.2) | ||||||||||||
Products Corporation [Member] | Reportable Legal Entities [Member] | |||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||
Net sales | 826.6 | 1,049.4 | 1,001.1 | ||||||||||||
Cost of sales | 261.4 | 466.0 | 430.5 | ||||||||||||
Gross profit | 565.2 | 583.4 | 570.6 | ||||||||||||
Selling, general and administrative expenses | 467.0 | 495.0 | 466.6 | ||||||||||||
Acquisition and integration costs | 42.0 | 7.1 | 6.4 | ||||||||||||
Restructuring charges and other, net | 29.8 | 6.6 | 2.9 | ||||||||||||
Impairment charge | 0.0 | 9.7 | |||||||||||||
Operating income | 26.4 | 65.0 | 94.7 | ||||||||||||
Intercompany interest, net | (7.9) | (8.2) | (8.0) | ||||||||||||
Interest expense | 104.6 | 82.5 | 83.6 | ||||||||||||
Amortization of debt issuance costs | 6.8 | 5.7 | 5.5 | ||||||||||||
Loss on early extinguishment of debt, net | 16.9 | 2.0 | |||||||||||||
Foreign currency losses (gains), net | 4.2 | 0.4 | (3.1) | ||||||||||||
Miscellaneous, net | (56.5) | (54.2) | (48.0) | ||||||||||||
Other expenses, net | 68.1 | 26.2 | 32.0 | ||||||||||||
Income from continuing operations before income taxes | (41.7) | 38.8 | 62.7 | ||||||||||||
Provision for income taxes | (19.6) | 16.0 | 85.8 | ||||||||||||
(Loss) income from continuing operations, net of taxes | (22.1) | 22.8 | (23.1) | ||||||||||||
(Loss) income from discontinued operations, net of taxes | 0.0 | 0.0 | 0.2 | ||||||||||||
Equity in income (loss) of subsidiaries | 6.4 | 39.3 | 70.2 | ||||||||||||
Net (loss) income | (15.7) | 62.1 | 47.3 | ||||||||||||
Other comprehensive (loss) income | (6.4) | (2.1) | (93.4) | ||||||||||||
Total comprehensive (loss) income | (22.1) | 60.0 | (46.1) | ||||||||||||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||
Net sales | 596.9 | 340.4 | 356.8 | ||||||||||||
Cost of sales | 273.5 | 129.4 | 146.9 | ||||||||||||
Gross profit | 323.4 | 211.0 | 209.9 | ||||||||||||
Selling, general and administrative expenses | 245.1 | 131.2 | 133.3 | ||||||||||||
Acquisition and integration costs | 0.5 | 0.0 | 0.0 | ||||||||||||
Restructuring charges and other, net | 1.8 | 0.4 | 3.3 | ||||||||||||
Impairment charge | 0.0 | 0.0 | |||||||||||||
Operating income | 76.0 | 79.4 | 73.3 | ||||||||||||
Intercompany interest, net | 0.4 | (0.1) | (0.4) | ||||||||||||
Interest expense | 0.0 | 0.0 | 0.1 | ||||||||||||
Amortization of debt issuance costs | 0.0 | 0.0 | 0.0 | ||||||||||||
Loss on early extinguishment of debt, net | 0.0 | 0.0 | |||||||||||||
Foreign currency losses (gains), net | (1.5) | (0.6) | (0.1) | ||||||||||||
Miscellaneous, net | 17.3 | (0.1) | (8.2) | ||||||||||||
Other expenses, net | 16.2 | (0.8) | (8.6) | ||||||||||||
Income from continuing operations before income taxes | 59.8 | 80.2 | 81.9 | ||||||||||||
Provision for income taxes | 40.3 | 36.2 | (8.4) | ||||||||||||
(Loss) income from continuing operations, net of taxes | 19.5 | 44.0 | 90.3 | ||||||||||||
(Loss) income from discontinued operations, net of taxes | 0.0 | 0.0 | 0.0 | ||||||||||||
Equity in income (loss) of subsidiaries | (9.5) | 43.1 | 1.5 | ||||||||||||
Net (loss) income | 10.0 | 87.1 | 91.8 | ||||||||||||
Other comprehensive (loss) income | (3.6) | (1.5) | 9.3 | ||||||||||||
Total comprehensive (loss) income | 6.4 | 85.6 | 101.1 | ||||||||||||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||||||||||||||
Condensed Income Statements, Captions [Line Items] | |||||||||||||||
Net sales | 919.4 | 730.7 | 771.5 | ||||||||||||
Cost of sales | 391.1 | 278.6 | 279.3 | ||||||||||||
Gross profit | 528.3 | 452.1 | 492.2 | ||||||||||||
Selling, general and administrative expenses | 439.5 | 367.3 | 399.8 | ||||||||||||
Acquisition and integration costs | 0.7 | 0.9 | 0.0 | ||||||||||||
Restructuring charges and other, net | 2.4 | 3.5 | 15.1 | ||||||||||||
Impairment charge | 23.4 | 0.0 | |||||||||||||
Operating income | 62.3 | 80.4 | 77.3 | ||||||||||||
Intercompany interest, net | 7.5 | 8.3 | 8.4 | ||||||||||||
Interest expense | 0.6 | 0.8 | 0.7 | ||||||||||||
Amortization of debt issuance costs | 0.0 | 0.0 | 0.0 | ||||||||||||
Loss on early extinguishment of debt, net | 0.0 | 0.0 | |||||||||||||
Foreign currency losses (gains), net | 15.8 | 15.9 | 28.2 | ||||||||||||
Miscellaneous, net | 38.6 | 54.7 | 57.4 | ||||||||||||
Other expenses, net | 62.5 | 79.7 | 94.7 | ||||||||||||
Income from continuing operations before income taxes | (0.2) | 0.7 | (17.4) | ||||||||||||
Provision for income taxes | 8.0 | 2.2 | 3.8 | ||||||||||||
(Loss) income from continuing operations, net of taxes | (8.2) | (1.5) | (21.2) | ||||||||||||
(Loss) income from discontinued operations, net of taxes | (4.9) | (3.2) | 1.1 | ||||||||||||
Equity in income (loss) of subsidiaries | 0.0 | 0.0 | 0.0 | ||||||||||||
Net (loss) income | (13.1) | (4.7) | (20.1) | ||||||||||||
Other comprehensive (loss) income | (1.8) | (18.8) | (15.8) | ||||||||||||
Total comprehensive (loss) income | $ (14.9) | $ (23.5) | $ (35.9) | ||||||||||||
|
GUARANTOR FINANCIAL INFORMATION Statement of Cash Flows (Details) - USD ($) $ in Millions |
12 Months Ended | ||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Feb. 08, 2013 |
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Net cash provided by (used in) operating activities | $ 114.2 | $ 155.3 | [1] | $ 174.0 | [1] | ||||||
Capital expenditures | (59.3) | (48.3) | [1] | (55.5) | [1] | ||||||
Business acquisitions, net of cash acquired | (1,028.7) | (41.7) | [1] | 0.0 | [1] | ||||||
Proceeds from the sale of certain assets | 0.5 | 6.2 | [1] | 3.4 | [1] | ||||||
Net cash used in investing activities | (1,087.5) | (83.8) | [1] | (52.1) | [1] | ||||||
Net increase (decrease) in short-term borrowings and overdraft | 0.0 | 23.0 | [1] | (4.7) | [1] | ||||||
Payment of financing costs | (61.6) | 0.0 | [1] | (1.8) | [1] | ||||||
Other financing activities | (2.5) | (3.7) | [1] | (3.2) | [1] | ||||||
Net cash provided by (used in) financing activities | 835.8 | (12.1) | [1] | (75.1) | [1] | ||||||
Effect of exchange rate changes on cash and cash equivalents | (2.6) | (7.8) | [1] | (15.6) | [1] | ||||||
Net (decrease) increase in cash and cash equivalents | (140.1) | 51.6 | [1] | 31.2 | [1] | ||||||
Cash and cash equivalents at beginning of period | [1] | 326.9 | [2] | 275.3 | 244.1 | ||||||
Cash and cash equivalents at end of period | 186.8 | 326.9 | [1],[2] | 275.3 | [1] | ||||||
Acquisition Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | (15.1) | (19.3) | [1] | (7.0) | [1] | ||||||
Repayments of debt, payoff | (658.6) | 0.0 | [1] | 0.0 | [1] | ||||||
2011 Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | $ (113.0) | (11.5) | (12.1) | [1] | 0.0 | [1] | |||||
Repayments of debt, payoff | (651.4) | 0.0 | [1] | 0.0 | [1] | ||||||
2016 Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | (4.5) | 0.0 | [1] | 0.0 | [1] | ||||||
Proceeds from issuance of debt | 1,791.0 | 0.0 | [1] | 0.0 | [1] | ||||||
6.25% Senior Notes [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Proceeds from issuance of debt | 450.0 | 0.0 | [1] | 0.0 | |||||||
Non-Contributed Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | 0.0 | 0.0 | [1] | (58.4) | [1] | ||||||
Eliminations [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Net cash provided by (used in) operating activities | 0.0 | 0.0 | 0.0 | ||||||||
Capital expenditures | 0.0 | 0.0 | 0.0 | ||||||||
Business acquisitions, net of cash acquired | 0.0 | 0.0 | |||||||||
Proceeds from the sale of certain assets | 0.0 | 0.0 | 0.0 | ||||||||
Net cash used in investing activities | 0.0 | 0.0 | 0.0 | ||||||||
Net increase (decrease) in short-term borrowings and overdraft | 0.0 | 0.0 | 0.0 | ||||||||
Payment of financing costs | 0.0 | 0.0 | |||||||||
Other financing activities | 0.0 | 0.0 | 0.0 | ||||||||
Net cash provided by (used in) financing activities | 0.0 | 0.0 | 0.0 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 0.0 | 0.0 | 0.0 | ||||||||
Net (decrease) increase in cash and cash equivalents | 0.0 | 0.0 | 0.0 | ||||||||
Cash and cash equivalents at beginning of period | 0.0 | 0.0 | 0.0 | ||||||||
Cash and cash equivalents at end of period | 0.0 | 0.0 | 0.0 | ||||||||
Eliminations [Member] | Acquisition Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | 0.0 | 0.0 | 0.0 | ||||||||
Repayments of debt, payoff | 0.0 | ||||||||||
Eliminations [Member] | 2011 Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | 0.0 | 0.0 | |||||||||
Repayments of debt, payoff | 0.0 | ||||||||||
Eliminations [Member] | 2016 Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | 0.0 | ||||||||||
Proceeds from issuance of debt | 0.0 | ||||||||||
Eliminations [Member] | 6.25% Senior Notes [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Proceeds from issuance of debt | 0.0 | ||||||||||
Eliminations [Member] | Non-Contributed Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | 0.0 | ||||||||||
Products Corporation [Member] | Reportable Legal Entities [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Net cash provided by (used in) operating activities | 85.1 | 89.1 | 77.3 | ||||||||
Capital expenditures | (38.6) | (29.5) | (40.3) | ||||||||
Business acquisitions, net of cash acquired | (993.2) | (8.1) | |||||||||
Proceeds from the sale of certain assets | 0.1 | 3.5 | 0.0 | ||||||||
Net cash used in investing activities | (1,031.7) | (34.1) | (40.3) | ||||||||
Net increase (decrease) in short-term borrowings and overdraft | (11.1) | 17.3 | (4.2) | ||||||||
Payment of financing costs | (61.6) | (1.8) | |||||||||
Other financing activities | (2.1) | (3.6) | (2.7) | ||||||||
Net cash provided by (used in) financing activities | 825.1 | (17.7) | (74.1) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | 0.0 | 0.0 | 0.0 | ||||||||
Net (decrease) increase in cash and cash equivalents | (121.5) | 37.3 | (37.1) | ||||||||
Cash and cash equivalents at beginning of period | 141.5 | 104.2 | 141.3 | ||||||||
Cash and cash equivalents at end of period | 20.0 | 141.5 | 104.2 | ||||||||
Products Corporation [Member] | Reportable Legal Entities [Member] | Acquisition Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | (15.1) | (19.3) | (7.0) | ||||||||
Repayments of debt, payoff | (658.6) | ||||||||||
Products Corporation [Member] | Reportable Legal Entities [Member] | 2011 Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | (11.5) | (12.1) | |||||||||
Repayments of debt, payoff | (651.4) | ||||||||||
Products Corporation [Member] | Reportable Legal Entities [Member] | 2016 Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | (4.5) | ||||||||||
Proceeds from issuance of debt | 1,791.0 | ||||||||||
Products Corporation [Member] | Reportable Legal Entities [Member] | 6.25% Senior Notes [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Proceeds from issuance of debt | 450.0 | ||||||||||
Products Corporation [Member] | Reportable Legal Entities [Member] | Non-Contributed Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | (58.4) | ||||||||||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Net cash provided by (used in) operating activities | (56.8) | 7.9 | 78.0 | ||||||||
Capital expenditures | (5.4) | (5.5) | (2.4) | ||||||||
Business acquisitions, net of cash acquired | 0.0 | 0.0 | |||||||||
Proceeds from the sale of certain assets | 0.4 | 2.7 | 0.0 | ||||||||
Net cash used in investing activities | (5.0) | (2.8) | (2.4) | ||||||||
Net increase (decrease) in short-term borrowings and overdraft | 3.5 | 0.0 | (1.9) | ||||||||
Payment of financing costs | 0.0 | 0.0 | |||||||||
Other financing activities | 0.0 | 0.0 | 0.0 | ||||||||
Net cash provided by (used in) financing activities | 3.5 | 0.0 | (1.9) | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (0.4) | (0.2) | (0.1) | ||||||||
Net (decrease) increase in cash and cash equivalents | (58.7) | 4.9 | 73.6 | ||||||||
Cash and cash equivalents at beginning of period | 93.0 | 88.1 | 14.5 | ||||||||
Cash and cash equivalents at end of period | 34.3 | 93.0 | 88.1 | ||||||||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Acquisition Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | 0.0 | 0.0 | 0.0 | ||||||||
Repayments of debt, payoff | 0.0 | ||||||||||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | 2011 Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | 0.0 | 0.0 | |||||||||
Repayments of debt, payoff | 0.0 | ||||||||||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | 2016 Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | 0.0 | ||||||||||
Proceeds from issuance of debt | 0.0 | ||||||||||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | 6.25% Senior Notes [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Proceeds from issuance of debt | 0.0 | ||||||||||
Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Non-Contributed Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | 0.0 | ||||||||||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Net cash provided by (used in) operating activities | 85.9 | 58.3 | 18.7 | ||||||||
Capital expenditures | (15.3) | (13.3) | (12.8) | ||||||||
Business acquisitions, net of cash acquired | (35.5) | (33.6) | |||||||||
Proceeds from the sale of certain assets | 0.0 | 0.0 | 3.4 | ||||||||
Net cash used in investing activities | (50.8) | (46.9) | (9.4) | ||||||||
Net increase (decrease) in short-term borrowings and overdraft | 7.6 | 5.7 | 1.4 | ||||||||
Payment of financing costs | 0.0 | 0.0 | |||||||||
Other financing activities | (0.4) | (0.1) | (0.5) | ||||||||
Net cash provided by (used in) financing activities | 7.2 | 5.6 | 0.9 | ||||||||
Effect of exchange rate changes on cash and cash equivalents | (2.2) | (7.6) | (15.5) | ||||||||
Net (decrease) increase in cash and cash equivalents | 40.1 | 9.4 | (5.3) | ||||||||
Cash and cash equivalents at beginning of period | 92.4 | 83.0 | 88.3 | ||||||||
Cash and cash equivalents at end of period | 132.5 | 92.4 | 83.0 | ||||||||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Acquisition Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | 0.0 | 0.0 | 0.0 | ||||||||
Repayments of debt, payoff | 0.0 | ||||||||||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | 2011 Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | 0.0 | $ 0.0 | |||||||||
Repayments of debt, payoff | 0.0 | ||||||||||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | 2016 Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | 0.0 | ||||||||||
Proceeds from issuance of debt | 0.0 | ||||||||||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | 6.25% Senior Notes [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Proceeds from issuance of debt | $ 0.0 | ||||||||||
Non-Guarantor Subsidiaries [Member] | Reportable Legal Entities [Member] | Non-Contributed Term Loan [Member] | |||||||||||
Condensed Cash Flow Statements, Captions [Line Items] | |||||||||||
Repayments of debt, scheduled | $ 0.0 | ||||||||||
|
GUARANTOR FINANCIAL INFORMATION - Additional Information (Details) |
Dec. 31, 2016 |
Aug. 04, 2016 |
Dec. 31, 2013 |
---|---|---|---|
5.75% Senior Notes [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Stated interest rate | 5.75% | 5.75% | |
6.25% Senior Notes [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Stated interest rate | 6.25% | ||
6.25% Senior Notes [Member] | Revlon Consumer Products Corporation [Member] | |||
Condensed Financial Statements, Captions [Line Items] | |||
Stated interest rate | 6.25% |
SCHEDULE II - VALUATION AND QUALIFYING ACCOUNTS (Details) - USD ($) $ in Millions |
12 Months Ended | ||
---|---|---|---|
Dec. 31, 2016 |
Dec. 31, 2015 |
Dec. 31, 2014 |
|
Allowance for Doubtful Accounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | $ 10.5 | $ 9.3 | $ 4.2 |
Charged to Cost and Expenses | 2.2 | 2.8 | 8.4 |
Other Deductions | (1.6) | (1.6) | (3.3) |
Balance at End of Year | 11.1 | 10.5 | 9.3 |
Allowance For Volume And Early Payment Discounts [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 22.6 | 23.4 | 12.1 |
Charged to Cost and Expenses | 80.1 | 51.6 | 84.7 |
Other Deductions | (79.7) | (52.4) | (73.4) |
Balance at End of Year | 23.0 | 22.6 | 23.4 |
Allowance for Sales Returns [Member] | |||
Movement in Valuation Allowances and Reserves [Roll Forward] | |||
Balance at Beginning of Year | 39.3 | 45.4 | 53.1 |
Charged to Cost and Expenses | 64.5 | 48.5 | 64.3 |
Other Deductions | (56.6) | (54.6) | (72.0) |
Balance at End of Year | $ 47.2 | $ 39.3 | $ 45.4 |
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