QUARTERLY RESULTS OF OPERATIONS (UNAUDITED)

The following is a summary of the Company’s unaudited quarterly results of operations for 2017 and 2016:



	Year Ended December 31, 2017
	1st Quarter			2nd Quarter			3rd Quarter			4th Quarter
Net sales	$	594.9		$	645.7		$	666.5		$	786.6
Gross profit	329.8			377.5			376.2			458.9
Loss from continuing operations, net of taxes^(a)	(37.7		)	(37.1		)	(32.8		)	(77.7		)
Income from discontinued operations, net of taxes^(c)	0.3			0.6			0.4			0.8
Net loss^(a)(c)	(37.4		)	(36.5		)	(32.4		)	(76.9		)

^*Basic (loss) income per common share^(a)(c):
Continuing operations	$	(0.72	)	$	(0.70	)	$	(0.62	)	$	(1.48	)
Discontinued operations	0.01			—			0.01			0.02
Net (loss) income per common share	$	(0.71	)	$	(0.70	)	$	(0.61	)	$	(1.46	)

^*Diluted (loss) income per common share^(a)(c):
Continuing operations	$	(0.72	)	$	(0.70	)	$	(0.62	)	$	(1.48	)
Discontinued operations	0.01			—			0.01			0.02
Net (loss) income per common share	$	(0.71	)	$	(0.70	)	$	(0.61	)	$	(1.46	)



	Year Ended December 31, 2016
	1st Quarter		2nd Quarter			3rd Quarter			4th Quarter
Net sales	$	439.6	$	488.9		$	604.8		$	800.7
Gross profit	285.7		317.4			361.4			452.4
(Loss) Income from continuing operations, net of taxes^(b)	10.6		10.8			(4.5		)	(33.9		)
(Loss) from discontinued operations, net of taxes^(c)	0.4		(2.5		)	(0.2		)	(2.6		)
Net (loss) income^(b)(c)	11.0		8.3			(4.7		)	(36.5		)

*Basic (loss) income per common share^(b)(c):
Continuing operations	$	0.20	$	0.21		$	(0.09	)	$	(0.65	)
Discontinued operations	0.01		(0.05		)	—			(0.05		)
Net (loss) income per common share	$	0.21	$	0.16		$	(0.09	)	$	(0.70	)

*Diluted (loss) income per common share^(b)(c):
Continuing operations	$	0.20	$	0.21		$	(0.09	)	$	(0.65	)
Discontinued operations	0.01		(0.05		)	—			(0.05		)
Net (loss) income per common share	$	0.21	$	0.16		$	(0.09	)	$	(0.70	)


^(*)	The sum of the quarterly earnings per share amounts may not equal the full year amount reported since per share amounts are computed independently for each quarter and for the full year based upon the respective weighted average common shares outstanding and other dilutive potential common shares for each respective period.

^(a)

Loss from continuing operations, net loss and basic and diluted net loss per share for the fourth quarter of 2017 were impacted by: (i) a $59.6 million provision for income taxes, primarily due to the impact of the Tax Act (See Note 16, "Income Taxes" for more information); (ii) $22.1 million of restructuring charges, primarily related to the EA Integration Restructuring Program (See Note 3, "Restructuring Charges" for more information); and (iii) $12.7 million of acquisition and integration costs primarily related to the Elizabeth Arden Acquisition.

(b)

Income from continuing operations, net income and basic and diluted income per share for the fourth quarter of 2016 were unfavorably impacted by: (i) $31.7 million of restructuring charges related to the EA Integration Restructuring Charges (See Note 3, "Restructuring Charges"); and (ii) $16.7 million and $6.7 million of non-cash impairment charges on goodwill and intangible assets, respectively, within the Other reporting unit (see Note 8, "Goodwill and Intangible Assets, Net").


^(c)	Income (loss) from discontinued operations includes the results of the Company's former China operations within the Consumer segment (See Note 4, "Discontinued Operations").