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 "Principal 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 Principal Executive Officer. As of December 31, 2017, 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, 2017, the Company’s operations are organized into the following reportable segments:

•

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, e-commerce sites, 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, as well as Cutex nail care products.

•

Elizabeth Arden - The Elizabeth Arden segment markets, distributes and sells fragrances, skin care and color cosmetics to prestige retailers, the mass retail channel, specialty stores, perfumeries, department stores, boutiques, e-commerce, travel retailers and distributors, as well as direct sales to consumers via its Elizabeth Arden branded retail stores and ElizabethArden.com e-commerce business under brands such as Skin Illuminating, SUPERSTART, Prevage, Eight Hour, 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, All Saints, La Perla and Wildfox in designer fragrances; and Curve, Elizabeth Taylor, Britney Spears, Christina Aguilera, Shawn Mendes, 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.

•

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.


•	Other - The Other segment includes the operating results related to the development, marketing and distribution of certain licensed fragrances and other beauty products. 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 costs; (iv) costs of sales resulting from a fair value adjustment to inventory acquired in the Elizabeth Arden Acquisition; and (v) charges related to the Elizabeth Arden 2016 Business Transformation Program. 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 2017, 2016 and 2015:



	Year Ended December 31,
	2017			2016			2015
Segment Net Sales:
Consumer	$	1,288.5		$	1,389.8		$	1,414.8
Elizabeth Arden	952.5			441.4			—
Professional	432.2			476.5			471.1
Other	20.5			26.3			28.4
Total	$	2,693.7		$	2,334.0		$	1,914.3

Segment Profit:
Consumer	$	239.6		$	349.2		$	360.2
Elizabeth Arden	114.2			68.2			—
Professional	54.9			99.4			103.9
Other	(3.7		)	(2.7		)	1.4
Total	$	405.0		$	514.1		$	465.5

Reconciliation:
Segment Profit	$	405.0		$	514.1		$	465.5
Less:
Unallocated corporate expenses	146.2			98.8			88.0
Depreciation and amortization	155.8			123.2			103.2
Non-cash stock compensation expense	6.8			6.4			5.1
Non-Operating items:
Restructuring and related charges	34.5			36.8			11.6
Acquisition and integration costs	52.9			43.2			8.0
Elizabeth Arden 2016 Business Transformation Program	1.1			2.6			—
Elizabeth Arden inventory purchase accounting adjustment, cost of sales	17.2			20.7			—
Inventory purchase accounting adjustment, cost of sales	—			0.2			0.9
Pension lump-sum settlement	—			—			20.7
Impairment charge	10.8			23.4			9.7
Deferred compensation	2.0			3.5			2.5
Operating (loss) income	(22.3		)	155.3			215.8
Less:
Interest Expense	149.8			105.2			83.3
Amortization of debt issuance costs	9.1			6.8			5.7
Loss on early extinguishment of debt	—			16.9			—
Foreign currency (gains) losses, net	(18.5		)	18.5			15.7
Miscellaneous, net	0.8			(0.6		)	0.4
(Loss) income from continuing operations before income taxes	$	(163.5	)	$	8.5		$	110.7

As of December 31, 2017, after giving effect to the Elizabeth Arden Acquisition, the Company had operations established in 27 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 16%, 17% and 18% of the Company’s worldwide net sales in 2017, 2016 and 2015, respectively, and such sales are primarily included within the net sales of the Consumer segment.



	Year Ended December 31,
	2017			2016			2015
Geographic area:
Net sales:
United States	$	1,315.1	49%	$	1,290.2	55%	$	1,058.7	55%
International	1,378.6		51%	1,043.8		45%	855.6		45%
	$	2,693.7		$	2,334.0		$	1,914.3



	December 31, 2017			December 31, 2016
Long-lived assets, net:
United States	$	1,480.1	83%	$	1,494.3	85%
International	295.6		17%	255.4		15%
	$	1,775.7		$	1,749.7



	Year Ended December 31,
	2017			2016			2015
Classes of similar products:
Net sales:
Color cosmetics	$	955.3	35%	$	998.3	43%	$	1,022.4	53%
Fragrance	731.3		27%	408.4		17%	80.8		4%
Hair care	517.3		19%	544.3		23%	522.1		27%
Beauty care	262.4		10%	294.4		13%	277.5		15%
Skin care	227.4		8%	88.6		4%	11.5		1%
	$	2,693.7		$	2,334.0		$	1,914.3