SEGMENT DATA AND RELATED INFORMATION

12 Months Ended

Dec. 31, 2013

Segment Reporting [Abstract]

SEGMENT DATA AND RELATED INFORMATION

SEGMENT DATA AND RELATED INFORMATION

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

At December 31, 2013, the Company’s operations are organized into the following two operating segments, which also comprise all of the Company’s reportable segments:

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

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

The Company's management evaluates segment profit, which is defined as income from continuing operations before interest, taxes, depreciation, amortization, gains/losses on foreign currency fluctuations, gains/losses on the early extinguishment of debt and miscellaneous expenses, for each of the Company's Consumer and Professional segments. Segment profit also excludes unallocated corporate expenses and the impact of certain items that are not directly attributable to the segments' underlying operating performance, including the impact of: (i) restructuring and related charges; (ii) shareholder litigation; (iii) insurance proceeds related to the 2011 fire that destroyed the Company's facility in Venezuela; (iv) clean-up costs associated with the Venezuela fire; (v) acquisition and integration costs; and (vi) costs of sales resulting from a fair value adjustment to inventory acquired in the Colomer Acquisition, which are shown in the table reconciling segment profit to consolidated income before income taxes. Unallocated corporate expenses primarily relate to general and administrative expenses related to the corporate organization. These expenses are recorded in unallocated corporate expenses as these items are centrally directed and controlled and are not included in internal measures of segment operating performance. The Company does not have any intersegment 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 assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; thus, no additional information regarding assets and liabilities of the Company’s operating segments is produced for the Company's management or included herein.

The following table is a comparative summary of the Company’s net sales and segment profit by operating segment for the years ended December 31, 2013, 2012 and 2011:

	Year Ended December 31,
	2013			2012		2011
Segment Net Sales:
Consumer	$	1,377.9		$	1,396.4	$	1,347.5
Professional	116.8			—		—
Total	$	1,494.7		$	1,396.4	$	1,347.5
Segment Profit:
Consumer	$	347.1		$	363.1	$	323.4
Professional	5.2			—		—
Total	$	352.3		$	363.1	$	323.4
Reconciliation:
Segment Profit	$	352.3		$	363.1	$	323.4
Less:
Unallocated corporate expenses	68.6			65.4		54.8
Non-recurring items:
Gain from insurance proceeds related to Venezuela fire	(26.4		)	—		—
Acquisition and integration costs	25.4			—		—
Inventory purchase accounting adjustment, cost of sales	8.5			—		—
Accrual for Venezuela fire clean-up	7.6			—		—
Restructuring and related charges	4.5			24.1		—
Shareholder litigation (recoveries) charges	(1.8		)	8.9		—
	265.9			264.7		268.6
Less:
Depreciation and amortization	76.9			65.2		62.5
Interest Expense	73.8			79.1		84.9
Interest Expense - Preferred Stock	5.0			6.5		6.4
Amortization of debt issuance costs	5.2			5.3		5.3
Loss on early extinguishment of debt	29.7			—		11.2
Foreign currency losses, net	3.7			2.8		4.7
Miscellaneous, net	1.0			0.9		1.6
Income from continuing operations before income taxes	$	70.6		$	104.9	$	92.0

As of December 31, 2013, the Company had operations established in 24 countries outside of the U.S. and its products are sold throughout the world. Generally, net sales by geographic area are presented by attributing revenues from external customers on the basis of where the products are sold. Walmart and its affiliates worldwide accounted for approximately 21% of the Company’s worldwide net sales in 2013 and 22% in each of 2012 and 2011. The Company expects that Walmart and a small number of other customers will, in the aggregate, continue to account for a large portion of the Company’s net sales. As is customary in the consumer products industry, none of the Company’s customers is under an obligation to continue purchasing products from the Company in the future.

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

	Year Ended December 31,
	2013			2012			2011
Geographic area:
Net sales:
United States	$	832.8	56%	$	799.8	57%	$	757.4	56%
Outside of the United States	661.9		44%	596.6		43%	590.1		44%
	$	1,494.7		$	1,396.4		$	1,347.5

	December 31, 2013			December 31, 2012
Long-lived assets, net:
United States	$	830.1	72%	$	431.7	90%
Outside of the United States	315.1		28%	48.5		10%
	$	1,145.2		$	480.2

	Year Ended December 31,
	2013			2012			2011
Classes of similar products:
Net sales:
Color cosmetics	$	926.4	62%	$	913.0	65%	$	849.7	63%
Hair care	263.9		18%	191.1		14%	179.3		13%
Beauty care and fragrance	304.4		20%	292.3		21%	318.5		24%
	$	1,494.7		$	1,396.4		$	1,347.5