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:

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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.

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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.

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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.

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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.

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.



	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)	98.8			88.0		69.0
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	155.3			215.8		235.5
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	$	8.5		$	110.7	$	117.4


^(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.

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.



	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