SEGMENT DATA AND RELATED INFORMATION

9 Months Ended

Sep. 30, 2015

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 “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 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 September 30, 2015, the Company’s operations are organized into the following operating segments:

• Consumer - 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 the mass retail channel, consisting of large mass volume retailers and chain drug and food stores in the U.S. and internationally, as well as certain department stores and other specialty stores, such as perfumeries, outside the U.S. The Consumer segment also includes a skincare line and hair color line sold in the mass retail channel, primarily in Spain, which were acquired as part of the Colomer Acquisition.

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

• Other - The Other segment primarily includes the operating results of the CBB business and related purchase accounting for the Company's April 2015 CBB Acquisition. The results included within the Other segment are not material to the Company's consolidated results of operations.

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) costs of sales resulting from a fair value adjustment in the second quarter of 2015 to inventory acquired in the CBB Acquisition; and (iv) costs of sales resulting from a fair value adjustment in the first quarter of 2014 to inventory acquired in the Colomer Acquisition. 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. 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, $2.1 million and $6.2 million in pension-related costs were reclassified from the measurement of Consumer segment profit and included as a component of unallocated corporate expenses for the three and nine months ended September 30, 2014, respectively. The Company does not have any material inter-segment sales.

The accounting policies for each of the reportable segments are the same as those described in Note 1, “Description of Business and Summary of Significant Accounting Policies” in Revlon, Inc.'s 2014 Form 10-K. 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 operating segments is produced for the Company's management or included in these Consolidated Financial Statements.

The following table is a comparative summary of the Company’s net sales and segment profit by operating segment for the three and nine months ended September 30, 2015 and 2014. In the table below, certain prior period amounts have been reclassified to conform to the presentation for 2015.

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015			2014
Segment Net Sales:
Consumer	$	348.1		$	348.2	$	1,027.1		$	1,055.0
Professional	114.5			124.1		352.1			385.0
Other	$	8.9		$	—	$	13.2		$	—
Total	$	471.5		$	472.3	$	1,392.4		$	1,440.0
Segment Profit:
Consumer (a)	$	86.0		$	76.0	$	232.0		$	225.8
Professional	23.4			25.2		76.9			88.5
Other	$	(2.3	)	$	—	$	(2.8	)	$	—
Total	$	107.1		$	101.2	$	306.1		$	314.3
Reconciliation:
Segment Profit	$	107.1		$	101.2	$	306.1		$	314.3
Less:
Unallocated corporate expenses (a)	20.4			16.2		55.7			47.8
Depreciation and amortization	26.0			25.6		76.8			76.4
Non-cash stock compensation expense	1.0			3.2		3.8			3.7
Non-Operating items:
Restructuring and related charges	4.2			1.1		1.9			18.8
Acquisition and integration costs	0.6			0.9		6.5			5.4
Inventory purchase accounting adjustment, cost of sales	(0.1		)	—		0.5			2.6
Operating Income	55.0			54.2		160.9			159.6
Less:
Interest Expense	21.5			20.6		62.0			63.9
Amortization of debt issuance costs	1.4			1.3		4.2			4.1
Loss on early extinguishment of debt	—			—		—			2.0
Foreign currency losses (gains), net	(0.7		)	9.3		7.3			17.9
Miscellaneous, net	0.3			0.1		0.5			0.2
Income from continuing operations before income taxes	$	32.5		$	22.9	$	86.9		$	71.5

^(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, $2.1 million and $6.2 million of pension-related costs were reclassified from the measurement of Consumer segment profit and included as a component of unallocated corporate expenses for the three and nine months ended September 30, 2014, respectively.

As of September 30, 2015, 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.

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Geographic area:
Net sales:
United States	$	255.0	54%	$	243.8	52%	$	766.4	55%	$	749.2	52%
Outside of the United States	216.5		46%	228.5		48%	626.0		45%	690.8		48%
	$	471.5		$	472.3		$	1,392.4		$	1,440.0

	September 30, 2015			December 31, 2014
Long-lived assets, net:
United States	$	880.2	79%	$	845.5	76%
Outside of the United States	230.4		21%	271.7		24%
	$	1,110.6		$	1,117.2

	Three Months Ended September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
Classes of similar products:
Net sales:
Color cosmetics	$	243.6	52%	$	242.6	51%	$	749.1	54%	$	763.5	53%
Hair care	131.0		28%	132.8		28%	387.9		28%	405.5		28%
Beauty care and fragrance	96.9		21%	96.9		21%	255.4		18%	271.0		19%
	$	471.5		$	472.3		$	1,392.4		$	1,440.0