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 September 30, 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 September 30, 2016, the Company’s operations are organized into the following reportable segments:

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Consumer - The Consumer segment is comprised of the Company's consumer brands other than those operated under the Elizabeth Arden segment, 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 skincare line under the Natural Honey brand and a hair color line under the Llongueras brand 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 the U.S. Cutex business and Cutex International business and related assets, respectively. The results of operations relating to the sales of Cutex nail care products are included within the Consumer segment.

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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 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 line consisting of Creme of Nature hair care products sold to large volume retailers, other retailers and professional salons, primarily in the U.S.

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Elizabeth Arden - 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, skincare and cosmetic brands, including the Elizabeth Arden skin care brands, color cosmetics and fragrances; designer fragrances such as Juicy Couture and John Varvatos; heritage fragrances such as Curve, Elizabeth Taylor, Britney Spears and Christina Aguilera; and various celebrity fragrances.

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Other - The Other segment primarily includes the operating results of the CBB business and related purchase accounting for the CBB Acquisition. CBB develops, manufactures, 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 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 in the second quarter of 2016 and 2015 to inventory acquired in the Cutex International Acquisition and CBB Acquisition, respectively; (v) charges related to the Elizabeth Arden 2016 Business Transformation Program; and (vi) costs of sales resulting from a fair value adjustment to inventory acquired in the Elizabeth Arden 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. 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 2015 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 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 the three and nine months ended September 30, 2016 and 2015.



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016				2015
Segment Net Sales:
Consumer	$	342.8		$	348.1		$	1,022.3			$	1,027.1
Professional	118.8			114.5			357.2				352.1
Elizabeth Arden	135.2			—			135.2				—
Other	8.0			8.9			18.6				13.2
Total	$	604.8		$	471.5		$	1,533.3			$	1,392.4

Segment Profit:
Consumer	$	81.0		$	86.0		$	220.4			$	232.0
Professional	23.7			23.4			73.4				76.9
Elizabeth Arden	32.5			—			32.5				—
Other	(0.1		)	(1.4		)	(0.9		)		(1.2		)
Total	$	137.1		$	108.0		$	325.4			$	307.7

Reconciliation:
Segment Profit	$	137.1		$	108.0		$	325.4			$	307.7
Less:
Unallocated corporate expenses	24.2			20.4			59.1				55.7
Depreciation and amortization	28.8			26.0			81.0				76.8
Non-cash stock compensation expense	1.5			1.0			4.8				3.8
Non-Operating items:
Restructuring and related charges	0.5			4.2			2.3				1.9
Acquisition and integration costs	33.5			0.6			39.5				6.5
Deferred compensation related to CBB acquisition	0.8			0.9			2.6			—	1.6
Cutex International inventory purchase accounting adjustment, cost of sales	0.2			(0.1		)	0.3				0.5
Elizabeth Arden 2016 Business Transformation Program	1.7			—			1.7				—
Elizabeth Arden inventory purchase accounting adjustment, cost of sales	4.2			—			4.2				—
Operating Income	41.7			55.0			129.9				160.9
Less:
Interest Expense	27.4			21.5			69.3				62.0
Amortization of debt issuance costs	1.7			1.4			4.6				4.2
Loss on early extinguishment of debt	16.9			—			16.9				—
Foreign currency losses (gains), net	1.2			(0.7		)	6.3				7.3
Miscellaneous, net	(0.6		)	0.3			(0.1		)		0.5
Income from continuing operations before income taxes	$	(4.9	)	$	32.5		$	32.9			$	86.9

As of September 30, 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:



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Geographic area:
Net sales:
United States	$	326.1	54%	$	255.0	54%	$	836.8	55%	$	766.4	55%
International	278.7		46%	216.5		46%	696.5		45%	626.0		45%
	$	604.8		$	471.5		$	1,533.3		$	1,392.4



	September 30, 2016			December 31, 2015
Long-lived assets, net:
United States	$	1,464.5	83%	$	854.7	79%
International	289.6		17%	232.4		21%
	$	1,754.1		$	1,087.1



	Three Months Ended September 30,						Nine Months Ended September 30,
	2016			2015			2016			2015
Classes of similar products:
Net sales:
Color cosmetics	$	245.5	41%	$	242.5	51%	$	731.7	48%	$	746.4	54%
Hair care	135.3		22%	131.3		28%	402.1		26%	388.1		28%
Beauty care	96.2		16%	74.8		16%	244.6		16%	209.9		15%
Fragrance	127.8		21%	22.9		5%	154.9		10%	48.0		3%
	$	604.8		$	471.5		$	1,533.3		$	1,392.4