[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the quarterly period ended March 31, 2019 | ||
OR | ||
[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | ||
For the transition period from__________________ to _______________ |
Delaware | 13-3662955 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
One New York Plaza, New York, New York | 10004 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Name of each exchange on which registered |
Class A Common Stock | New York Stock Exchange |
Large accelerated filer ¨ | Accelerated filer x | |||
Non-accelerated filer ¨ | Smaller reporting company x | |||
Emerging growth company ¨ |
PART I - Financial Information | ||
Item 1. | ||
Item 2. | ||
Item 3. | ||
Item 4. | ||
PART II - Other Information | ||
Item 1. | ||
Item 1A. | ||
Item 5. | ||
Item 6. | ||
March 31, 2019 | December 31, 2018 | ||||||
(Unaudited) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 68.3 | $ | 87.3 | |||
Trade receivables, less allowance for doubtful accounts of $16.1 and $15.6 as of March 31, 2019 and December 31, 2018, respectively | 378.5 | 431.3 | |||||
Inventories | 546.7 | 523.2 | |||||
Prepaid expenses and other assets | 147.7 | 152.0 | |||||
Total current assets | 1,141.2 | 1,193.8 | |||||
Property, plant and equipment, net of accumulated depreciation of $444.7 and $425.2 as of March 31, 2019 and December 31, 2018, respectively | 444.7 | 354.5 | |||||
Deferred income taxes | 138.3 | 131.8 | |||||
Goodwill | 673.7 | 673.9 | |||||
Intangible assets, net of accumulated amortization of $201.0 and $187.3 as of March 31, 2019 and December 31, 2018, respectively | 515.8 | 532.0 | |||||
Other assets | 128.0 | 130.8 | |||||
Total assets | $ | 3,041.7 | $ | 3,016.8 | |||
LIABILITIES AND STOCKHOLDERS’ DEFICIENCY | |||||||
Current liabilities: | |||||||
Short-term borrowings | $ | 8.6 | $ | 9.3 | |||
Current portion of long-term debt | 389.7 | 348.1 | |||||
Accounts payable | 355.7 | 332.1 | |||||
Accrued expenses and other current liabilities | 377.9 | 430.9 | |||||
Total current liabilities | 1,131.9 | 1,120.4 | |||||
Long-term debt | 2,723.9 | 2,727.7 | |||||
Long-term pension and other post-retirement plan liabilities | 167.3 | 169.0 | |||||
Other long-term liabilities | 150.8 | 56.5 | |||||
Stockholders’ deficiency: | |||||||
Class A Common Stock, par value $0.01 per share: 900,000,000 shares authorized; 55,761,545 and 55,556,466 shares issued as of March 31, 2019 and December 31, 2018, respectively | 0.5 | 0.5 | |||||
Additional paid-in capital | 1,064.2 | 1,063.8 | |||||
Treasury stock, at cost: 1,624,719 and 1,533,320 shares of Class A Common Stock as of March 31, 2019 and December 31, 2018, respectively | (33.5 | ) | (31.9 | ) | |||
Accumulated deficit | (1,930.1 | ) | (1,855.0 | ) | |||
Accumulated other comprehensive loss | (233.3 | ) | (234.2 | ) | |||
Total stockholders’ deficiency | (1,132.2 | ) | (1,056.8 | ) | |||
Total liabilities and stockholders’ deficiency | $ | 3,041.7 | $ | 3,016.8 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Net sales | $ | 553.2 | $ | 560.7 | |||
Cost of sales | 237.8 | 242.6 | |||||
Gross profit | 315.4 | 318.1 | |||||
Selling, general and administrative expenses | 332.6 | 371.7 | |||||
Acquisition and integration costs | 0.6 | 4.0 | |||||
Restructuring charges and other, net | 5.5 | 4.1 | |||||
Operating loss | (23.3 | ) | (61.7 | ) | |||
Other expenses: | |||||||
Interest expense | 47.7 | 39.9 | |||||
Amortization of debt issuance costs | 3.2 | 2.3 | |||||
Foreign currency losses (gains), net | 0.2 | (10.6 | ) | ||||
Miscellaneous, net | 1.3 | — | |||||
Other expenses | $ | 52.4 | $ | 31.6 | |||
Loss from continuing operations before income taxes | (75.7 | ) | (93.3 | ) | |||
Provision (benefit) from income taxes | 0.1 | (1.6 | ) | ||||
Loss from continuing operations, net of taxes | (75.8 | ) | (91.7 | ) | |||
Income from discontinued operations, net of taxes | 0.7 | 1.4 | |||||
Net loss | $ | (75.1 | ) | $ | (90.3 | ) | |
Other comprehensive (loss) income: | |||||||
Foreign currency translation adjustments | (1.3 | ) | (2.5 | ) | |||
Amortization of pension related costs, net of tax(a)(b) | 2.2 | 2.1 | |||||
Reclassification into earnings of accumulated losses from the de-designated 2013 Interest Rate Swap, net of tax(c) | — | 0.6 | |||||
Other comprehensive income, net | 0.9 | 0.2 | |||||
Total comprehensive loss | $ | (74.2 | ) | $ | (90.1 | ) | |
Basic (loss) earnings per common share: | |||||||
Continuing operations | $ | (1.43 | ) | $ | (1.74 | ) | |
Discontinued operations | 0.01 | 0.03 | |||||
Net loss | $ | (1.42 | ) | $ | (1.71 | ) | |
Diluted (loss) earnings per common share: | |||||||
Continuing operations | $ | (1.43 | ) | $ | (1.74 | ) | |
Discontinued operations | 0.01 | 0.03 | |||||
Net loss | $ | (1.42 | ) | $ | (1.71 | ) | |
Weighted average number of common shares outstanding: | |||||||
Basic | 52,913,388 | 52,673,672 | |||||
Diluted | 52,913,388 | 52,673,672 |
(a) | Net of tax expense of $0.3 million for each of the three months ended March 31, 2019 and 2018. |
(b) | This amount is included in the computation of net periodic benefit costs (income). See Note 11, "Pension and Post-Retirement Benefits," for additional information regarding net periodic benefit costs (income). |
Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Deficiency | ||||||||||||||||||
Balance, January 1, 2019 | $ | 0.5 | $ | 1,063.8 | $ | (31.9 | ) | $ | (1,855.0 | ) | $ | (234.2 | ) | $ | (1,056.8 | ) | |||||||
Treasury stock acquired, at cost (a) | — | — | (1.6 | ) | — | — | (1.6 | ) | |||||||||||||||
Stock-based compensation amortization | — | 0.4 | — | — | — | 0.4 | |||||||||||||||||
Net loss | — | — | — | (75.1 | ) | — | (75.1 | ) | |||||||||||||||
Other comprehensive income, net (b) | — | — | — | — | 0.9 | 0.9 | |||||||||||||||||
Balance, March 31, 2019 | $ | 0.5 | $ | 1,064.2 | $ | (33.5 | ) | $ | (1,930.1 | ) | $ | (233.3 | ) | $ | (1,132.2 | ) |
Common Stock | Additional Paid-In Capital | Treasury Stock | Accumulated Deficit | Accumulated Other Comprehensive Loss | Total Stockholders’ Deficiency | ||||||||||||||||||
Balance, January 1, 2018 | $ | 0.5 | $ | 1,040.0 | $ | (21.7 | ) | $ | (1,560.8 | ) | $ | (228.4 | ) | $ | (770.4 | ) | |||||||
Treasury stock acquired, at cost (a) | — | — | (2.9 | ) | — | — | (2.9 | ) | |||||||||||||||
Stock-based compensation amortization | — | 7.7 | — | — | — | 7.7 | |||||||||||||||||
Net loss | — | — | — | (90.3 | ) | — | (90.3 | ) | |||||||||||||||
Other comprehensive income, net (b) | — | — | — | — | 0.2 | 0.2 | |||||||||||||||||
Balance, March 31, 2018 | $ | 0.5 | $ | 1,047.7 | $ | (24.6 | ) | $ | (1,651.1 | ) | $ | (228.2 | ) | $ | (855.7 | ) |
(a) | Pursuant to the share withholding provisions of the Fourth Amended and Restated Revlon, Inc. Stock Plan (the "Stock Plan"), the Company withheld an aggregate of 85,607 and 136,583 shares of Revlon Class A Common Stock during the three months ended March 31, 2019 and 2018, respectively, to satisfy certain minimum statutory tax withholding requirements related to the vesting of restricted shares and restricted stock units for certain senior executives and employees. These withheld shares were recorded as treasury stock using the cost method, at a weighted-average price per share of $18.86 and $21.30 during the three months ended March 31, 2019 and 2018, respectively, based on the closing price of Revlon Class A Common Stock as reported on the New York Stock Exchange (the "NYSE") consolidated tape on each respective vesting date, for a total of $1.6 million and $2.9 million. |
(b) | See Note 14, "Accumulated Other Comprehensive Loss," regarding the changes in the accumulated balances for each component of other comprehensive loss during the three months ended March 31, 2019. |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net loss | $ | (75.1 | ) | $ | (90.3 | ) | |
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 47.0 | 38.7 | |||||
Foreign currency losses (gains) from re-measurement | 0.2 | (10.5 | ) | ||||
Amortization of debt discount | 0.4 | 0.3 | |||||
Stock-based compensation amortization | 0.4 | 7.7 | |||||
Benefit from deferred income taxes | (5.6 | ) | (18.5 | ) | |||
Amortization of debt issuance costs | 3.2 | 2.3 | |||||
Loss on sale of certain assets | — | 0.1 | |||||
Pension and other post-retirement cost | 2.0 | 0.6 | |||||
Change in assets and liabilities: | |||||||
Decrease in trade receivables | 52.4 | 67.6 | |||||
Increase in inventories | (24.0 | ) | (14.6 | ) | |||
Decrease (increase) in prepaid expenses and other current assets | 1.5 | (46.3 | ) | ||||
Increase in accounts payable | 41.1 | 2.3 | |||||
Decrease in accrued expenses and other current liabilities | (66.7 | ) | (24.1 | ) | |||
Pension and other post-retirement plan contributions | (1.8 | ) | (1.8 | ) | |||
Purchases of permanent displays | (9.7 | ) | (14.2 | ) | |||
Other, net | 6.3 | 3.4 | |||||
Net cash used in operating activities | (28.4 | ) | (97.3 | ) | |||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Capital expenditures | (5.8 | ) | (13.7 | ) | |||
Net cash used in investing activities | (5.8 | ) | (13.7 | ) | |||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net (decrease) increase in short-term borrowings and overdraft | (17.2 | ) | 1.0 | ||||
Net borrowings under the Amended 2016 Revolving Credit Facility | 40.6 | 83.8 | |||||
Repayments under the 2016 Term Loan Facility | (4.5 | ) | (4.5 | ) | |||
Payment of financing costs | (0.9 | ) | — | ||||
Tax withholdings related to net share settlements of restricted stock units and awards | (1.6 | ) | (2.9 | ) | |||
Other financing activities | (0.2 | ) | (0.2 | ) | |||
Net cash provided by financing activities | 16.2 | 77.2 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.3 | 2.9 | |||||
Net decrease in cash, cash equivalents and restricted cash | (17.7 | ) | (30.9 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period (a) | 87.5 | 87.4 | |||||
Cash, cash equivalents and restricted cash at end of period (a) | $ | 69.8 | $ | 56.5 | |||
Supplemental schedule of cash flow information:(b) | |||||||
Cash paid during the period for: | |||||||
Interest | $ | 61.3 | $ | 53.6 | |||
Income taxes, net of refunds | 0.4 | 2.6 |
Restructuring Charges and Other, Net | |||||||||||||||||||
Employee Severance and Other Personnel Benefits | Other Costs | Total Restructuring Charges | Other Related Charges(a) | Total Restructuring and Related Charges | |||||||||||||||
Charges incurred through December 31, 2018 | $ | 4.5 | $ | — | $ | 4.5 | $ | 1.2 | $ | 5.7 | |||||||||
Charges incurred during the three months ended March 31, 2019 | 5.1 | — | 5.1 | 6.6 | 11.7 | ||||||||||||||
Cumulative charges incurred through March 31, 2019 | $ | 9.6 | $ | — | $ | 9.6 | $ | 7.8 | $ | 17.4 |
Charges incurred during the three months ended March 31, 2019 | Cumulative charges incurred through March 31, 2019 | |||||||
Revlon | $ | 2.8 | $ | 4.7 | ||||
Elizabeth Arden | 0.9 | 1.8 | ||||||
Portfolio | 0.7 | 1.7 | ||||||
Fragrances | 0.7 | 1.4 | ||||||
Total | $ | 5.1 | $ | 9.6 |
Restructuring Charges and Other, Net | |||||||||||||||||||||||
Employee Severance and Other Personnel Benefits | Lease Termination and Other Costs(a) | Total Restructuring Charges | Inventory Adjustments(b) | Other Related Charges(c) | Total Restructuring and Related Charges | ||||||||||||||||||
Cumulative charges incurred through March 31, 2019 | $ | 72.2 | $ | 5.1 | $ | 77.3 | $ | 1.9 | $ | 3.0 | $ | 82.2 |
Cumulative charges incurred through March 31, 2019 | ||||
Revlon | $ | 32.9 | ||
Elizabeth Arden | 13.3 | |||
Portfolio | 13.1 | |||
Fragrances | 18.0 | |||
Total | $ | 77.3 |
Utilized, Net | |||||||||||||||||||||||
Liability Balance at January 1, 2019 | Expense, Net | Foreign Currency Translation | Cash | Non-cash | Liability Balance at March 31, 2019 | ||||||||||||||||||
2018 Optimization Program:(a) | |||||||||||||||||||||||
Employee severance and other personnel benefits | $ | 3.7 | $ | 5.1 | $ | — | $ | (1.8 | ) | $ | — | $ | 7.0 | ||||||||||
Other | 1.2 | 6.6 | — | (1.2 | ) | — | 6.6 | ||||||||||||||||
Total 2018 Optimization Program | 4.9 | 11.7 | — | (3.0 | ) | — | 13.6 | ||||||||||||||||
EA Integration Restructuring Program:(b) | |||||||||||||||||||||||
Employee severance and other personnel benefits | 13.8 | — | (0.2 | ) | (3.0 | ) | — | 10.6 | |||||||||||||||
Other | 4.2 | — | — | (0.1 | ) | (3.5 | ) | 0.6 | |||||||||||||||
Total EA Integration Restructuring Program | 18.0 | — | (0.2 | ) | (3.1 | ) | (3.5 | ) | 11.2 | ||||||||||||||
Other individually immaterial actions:(c) | |||||||||||||||||||||||
Employee severance and other personnel benefits | 4.6 | 0.2 | — | (1.1 | ) | — | 3.7 | ||||||||||||||||
Other | 0.8 | 0.2 | — | (0.5 | ) | — | 0.5 | ||||||||||||||||
Total other individually immaterial actions | 5.4 | 0.4 | — | (1.6 | ) | — | 4.2 | ||||||||||||||||
Total restructuring reserve | $ | 28.3 | $ | 12.1 | $ | (0.2 | ) | $ | (7.7 | ) | $ | (3.5 | ) | $ | 29.0 |
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Net sales | $ | — | $ | — | ||||
Income from discontinued operations, before taxes | 0.7 | 1.4 | ||||||
Provision for income taxes | — | — | ||||||
Income from discontinued operations, net of taxes | 0.7 | 1.4 |
March 31, | December 31, | ||||||
2019 | 2018 | ||||||
Cash and cash equivalents | $ | 1.1 | $ | 1.1 | |||
Trade receivables, net | — | 0.2 | |||||
Total current assets | 1.1 | 1.3 | |||||
Total assets | $ | 1.1 | $ | 1.3 | |||
Accounts payable | $ | — | $ | 0.5 | |||
Accrued expenses and other | 3.1 | 3.3 | |||||
Total current liabilities | 3.1 | 3.8 | |||||
Total liabilities | $ | 3.1 | $ | 3.8 |
March 31, | December 31, | ||||||
2019 | 2018 | ||||||
Raw materials and supplies | $ | 137.9 | $ | 143.5 | |||
Work-in-process | 6.8 | 5.6 | |||||
Finished goods | 402.0 | 374.1 | |||||
$ | 546.7 | $ | 523.2 |
• | the recognition of ROU assets for operating leases and finance leases of approximately $109.3 million and $1.5 million, respectively; |
• | the recognition of lease liabilities for operating leases and finance leases of approximately $123.4 million and $1.4 million, respectively; and |
• | a decrease of approximately $11.3 million in accrued rent (of which $10.7 million was recorded in other long-term liabilities and $0.6 million was recorded in accrued expenses and other current liabilities), a decrease of approximately $3.5 million in lease termination liabilities and a decrease of approximately $0.7 million in prepaid rent, due to adjustments to balances previously recorded on the unaudited condensed consolidated balance sheets upon transition from the legacy ASC 840, "Leases," to ASC 842. |
• | ASC 842-10-15-37, by not separating lease components from non-lease components and instead accounting for all components as a single lease component for all of its classes of underlying assets, i.e., for any type of equipment leases and real estate leases; and |
• | ASC 842-10-65-1, by not reassessing at the transition date: (i) whether any expired or existing contracts are or contain leases, (ii) lease classification for any expired or existing leases, and (iii) initial direct costs for any existing leases. |
Three Months Ended | ||||
March 31, 2019 | ||||
Lease Cost: | ||||
Finance Lease Cost: | ||||
Amortization of ROU assets | $ | 0.0 | ||
Interest on lease liabilities | 0.0 | |||
Operating Lease Cost | 10.6 | |||
Total Lease Cost | 10.6 | |||
Other Information: | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows from finance leases | 0.0 | |||
Operating cash flows from operating leases | 11.0 | |||
Financing cash flows from finance leases | 0.2 | |||
ROU assets for finance leases | $ | 1.5 | ||
ROU assets for operating leases | 103.4 | |||
Amortization on ROU assets for finance leases | 0.0 | |||
Amortization on ROU assets for operating leases | 5.9 | |||
Weighted-average remaining lease term - finance leases | 2.3 years | |||
Weighted-average remaining lease term - operating leases | 6.4 years | |||
Weighted-average discount rate - finance leases | 6.1 | % | ||
Weighted-average discount rate - operating leases | 15.5 | % |
Operating Leases | Finance Leases | ||||||
April 2019 through December 2019 | $ | 29.6 | $ | 0.6 | |||
2020 | 33.6 | 0.4 | |||||
2021 | 30.0 | 0.2 | |||||
2022 | 23.2 | 0.1 | |||||
2023 | 19.0 | — | |||||
Thereafter | 60.6 | — | |||||
Total undiscounted cash flows | $ | 196.0 | $ | 1.3 | |||
Present value: | |||||||
Short-term lease liability | $ | 16.9 | $ | 0.7 | |||
Long-term lease liability | 98.0 | 0.5 | |||||
Total lease liability | $ | 114.9 | $ | 1.2 | |||
Difference between undiscounted cash flows and discounted cash flows | $ | 81.1 | $ | 0.1 |
Revlon | Portfolio | Elizabeth Arden | Fragrances | Total | |||||||||||||||
Balance at January 1, 2019 | $ | 265.0 | $ | 171.2 | $ | 116.9 | $ | 120.8 | $ | 673.9 | |||||||||
Foreign currency translation adjustment | (0.1 | ) | (0.1 | ) | — | — | (0.2 | ) | |||||||||||
Balance at March 31, 2019 | $ | 264.9 | $ | 171.1 | $ | 116.9 | $ | 120.8 | $ | 673.7 | |||||||||
Cumulative goodwill impairment charges(a) | $ | (55.2 | ) |
March 31, 2019 | |||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted-Average Useful Life (in Years) | ||||||||||
Finite-lived intangible assets: | |||||||||||||
Trademarks and licenses | $ | 271.7 | $ | (98.7 | ) | $ | 173.0 | 13 | |||||
Customer relationships | 248.1 | (86.3 | ) | 161.8 | 12 | ||||||||
Patents and internally-developed intellectual property | 20.9 | (10.5 | ) | 10.4 | 6 | ||||||||
Distribution rights | 31.0 | (4.4 | ) | 26.6 | 15 | ||||||||
Other | 1.3 | (1.1 | ) | 0.2 | 1 | ||||||||
Total finite-lived intangible assets | $ | 573.0 | $ | (201.0 | ) | $ | 372.0 | ||||||
Indefinite-lived intangible assets: | |||||||||||||
Trade names | $ | 143.8 | N/A | $ | 143.8 | ||||||||
Total indefinite-lived intangible assets | $ | 143.8 | N/A | $ | 143.8 | ||||||||
Total intangible assets | $ | 716.8 | $ | (201.0 | ) | $ | 515.8 | ||||||
December 31, 2018 | |||||||||||||
Gross Carrying Amount | Accumulated Amortization | Net Carrying Amount | Weighted-Average Useful Life (in Years) | ||||||||||
Finite-lived intangible assets: | |||||||||||||
Trademarks and licenses | $ | 272.3 | $ | (94.3 | ) | $ | 178.0 | 13 | |||||
Customer relationships | 248.6 | (77.9 | ) | 170.7 | 12 | ||||||||
Patents and internally-developed intellectual property | 20.9 | (10.1 | ) | 10.8 | 6 | ||||||||
Distribution rights | 31.0 | (4.0 | ) | 27.0 | 16 | ||||||||
Other | 1.3 | (1.0 | ) | 0.3 | 1 | ||||||||
Total finite-lived intangible assets | $ | 574.1 | $ | (187.3 | ) | $ | 386.8 | ||||||
Indefinite-lived intangible assets: | |||||||||||||
Trade names | $ | 145.2 | N/A | $ | 145.2 | ||||||||
Total indefinite-lived intangible assets | $ | 145.2 | N/A | $ | 145.2 | ||||||||
Total intangible assets | $ | 719.3 | $ | (187.3 | ) | $ | 532.0 |
Estimated Amortization Expense | |||
2019 | $ | 26.3 | |
2020 | 34.1 | ||
2021 | 33.2 | ||
2022 | 32.3 | ||
2023 | 30.7 | ||
Thereafter | 215.4 | ||
Total | $ | 372.0 |
March 31, | December 31, | ||||||
2019 | 2018 | ||||||
Sales returns and allowances | $ | 85.8 | $ | 97.7 | |||
Advertising and promotional costs | 63.6 | 76.2 | |||||
Compensation and related benefits | 40.1 | 55.9 | |||||
Taxes | 23.5 | 30.9 | |||||
Restructuring reserve | 21.7 | 26.4 | |||||
Interest | 19.7 | 33.8 | |||||
Other | 123.5 | 110.0 | |||||
Total | $ | 377.9 | $ | 430.9 |
March 31, | December 31, | ||||||
2019 | 2018 | ||||||
2018 Foreign Asset-Based Term Facility due 2021, net of discounts and debt issuance costs (a) | $ | 81.0 | $ | 82.7 | |||
Amended 2016 Revolving Credit Facility due 2021, net of debt issuance costs (b) | 371.6 | 330.0 | |||||
2016 Term Loan Facility: 2016 Term Loan due 2023, net of discounts and debt issuance costs (c) | 1,721.8 | 1,724.6 | |||||
5.75% Senior Notes due 2021, net of debt issuance costs (d) | 497.0 | 496.6 | |||||
6.25% Senior Notes due 2024, net of debt issuance costs (e) | 441.8 | 441.4 | |||||
Spanish Government Loan due 2025 | 0.4 | 0.5 | |||||
$ | 3,113.6 | $ | 3,075.8 | ||||
Less current portion(*) | (389.7 | ) | (348.1 | ) | |||
$ | 2,723.9 | $ | 2,727.7 | ||||
Short-term borrowings | $ | 8.6 | $ | 9.3 |
Commitment | Borrowing Base | Aggregate principal amount outstanding at March 31, 2019 | Availability at March 31, 2019 (a) | ||||||||||||
Tranche A of the Amended 2016 Revolving Credit Facility | $ | 400.0 | $ | 390.9 | $ | 338.2 | $ | 41.8 | |||||||
Tranche B of the Amended 2016 Revolving Credit Facility | 41.5 | 37.5 | 37.5 | — | |||||||||||
Total Tranche A & B of the Amended 2016 Revolving Credit Facility(a) | $ | 441.5 | $ | 428.4 | $ | 375.7 | $ | 41.8 |
• | Level 1: Fair valuing the asset or liability using observable inputs, such as quoted prices in active markets for identical assets or liabilities; |
• | Level 2: Fair valuing the asset or liability using inputs other than quoted prices that are observable for the applicable asset or liability, either directly or indirectly, such as quoted prices for similar (as opposed to identical) assets or liabilities in active markets and quoted prices for identical or similar assets or liabilities in markets that are not active; and |
• | Level 3: Fair valuing the asset or liability using unobservable inputs that reflect the Company’s own assumptions regarding the applicable asset or liability. |
March 31, 2019 | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Carrying Value | |||||||||||||||
Liabilities: | |||||||||||||||||||
Long-term debt, including current portion(a) | $ | — | $ | 2,392.4 | $ | — | $ | 2,392.4 | $ | 3,113.6 |
December 31, 2018 | |||||||||||||||||||
Fair Value | |||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Carrying Value | |||||||||||||||
Liabilities: | |||||||||||||||||||
Long-term debt, including current portion(a) | $ | — | $ | 2,259.5 | $ | — | $ | 2,259.5 | $ | 3,075.8 |
Derivative Instruments | Statement of Operations Classification | Amount of Gain (Loss) Recognized in Net Loss | |||||||||
Three Months Ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
Derivative financial instruments: | |||||||||||
2013 Interest Rate Swap | Interest Expense | $ | — | $ | (0.8 | ) | |||||
FX Contracts | Foreign currency gain (loss), net | — | 0.1 | ||||||||
2013 Interest Rate Swap | Miscellaneous, net | — | 0.2 |
Amount of Gain Recognized in Other Comprehensive Loss | ||||||||
Three Months Ended March 31, | ||||||||
2019 | 2018 | |||||||
Derivatives previously designated as hedging instruments: | ||||||||
2013 Interest Rate Swap, net of tax (a) | $ | — | $ | 0.6 |
Pension Plans | Other Post-Retirement Benefit Plans | ||||||||||||||
Three Months Ended March 31, | |||||||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||||
Net periodic benefit costs: | |||||||||||||||
Service cost | $ | 0.5 | $ | 0.5 | $ | — | $ | — | |||||||
Interest cost | 4.9 | 4.6 | 0.1 | 0.1 | |||||||||||
Expected return on plan assets | (6.0 | ) | (7.0 | ) | — | — | |||||||||
Amortization of actuarial loss | 2.4 | 2.3 | 0.1 | 0.1 | |||||||||||
Total net periodic benefit costs prior to allocation | $ | 1.8 | $ | 0.4 | $ | 0.2 | $ | 0.2 | |||||||
Portion allocated to Revlon Holdings | — | — | — | — | |||||||||||
Total net periodic benefit costs | $ | 1.8 | $ | 0.4 | $ | 0.2 | $ | 0.2 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Net periodic benefit costs: | |||||||
Selling, general and administrative expense | $ | 0.5 | $ | 0.5 | |||
Miscellaneous, net | 1.5 | 0.1 | |||||
Total net periodic benefit costs | $ | 2.0 | $ | 0.6 |
Time-Based LTIP | Performance-Based LTIP | ||||||||||||
RSUs (000's) | Weighted-Average Grant Date Fair Value per RSU | RSUs (000's) | Weighted-Average Grant Date Fair Value per RSU | ||||||||||
Outstanding as of December 31, 2018 | |||||||||||||
2018 | 434.7 | $ | 19.11 | 434.7 | $ | 19.11 | |||||||
2017 | 156.4 | 19.70 | 156.4 | 19.70 | |||||||||
Total LTIP RSU's Outstanding as of December 31, 2018 | 591.1 | 591.1 | |||||||||||
LTIP RSU's Vested | |||||||||||||
2018 | (128.9 | ) | 19.04 | — | — | ||||||||
2017 | (64.3 | ) | 19.70 | — | — | ||||||||
Total LTIP RSU's Vested | (193.2 | ) | — | ||||||||||
LTIP RSU's Forfeited/Canceled | |||||||||||||
2018 | (33.8 | ) | 19.70 | (34.9 | ) | 19.70 | |||||||
2017 | (21.7 | ) | 19.70 | (23.1 | ) | 19.70 | |||||||
Total LTIP RSU's Forfeited/Canceled | (55.5 | ) | (58.0 | ) | |||||||||
Outstanding as of March 31, 2019 | |||||||||||||
2018 | 272.0 | 19.08 | 399.8 | 19.06 | |||||||||
2017 | 70.4 | 19.70 | 133.3 | 19.70 | |||||||||
Total LTIP RSU's Outstanding as of March 31, 2019 | 342.4 | 533.1 |
Foreign Currency Translation | Actuarial (Loss) Gain on Post-retirement Benefits | Other | Accumulated Other Comprehensive Loss | ||||||||||||
Balance at January 1, 2019 | $ | (24.4 | ) | $ | (209.5 | ) | $ | (0.3 | ) | $ | (234.2 | ) | |||
Foreign currency translation adjustment | (1.3 | ) | — | — | (1.3 | ) | |||||||||
Amortization of pension related costs, net of tax of $(0.3) million(a) | — | 2.2 | — | 2.2 | |||||||||||
Other comprehensive (loss) income | $ | (1.3 | ) | $ | 2.2 | $ | — | $ | 0.9 | ||||||
Balance at March 31, 2019 | $ | (25.7 | ) | $ | (207.3 | ) | $ | (0.3 | ) | $ | (233.3 | ) |
2013 Interest Rate Swap | ||||
Beginning accumulated losses at December 31, 2017 | $ | (0.7 | ) | |
Reclassifications into earnings (net of $0.2 million tax benefit)(a) | 0.6 | |||
Ending accumulated losses at March 31, 2018 | $ | (0.1 | ) |
• | Revlon - The Revlon segment is comprised of the Company's flagship Revlon brands. Revlon segment products are primarily marketed, distributed and sold in the mass retail channel, large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, e-commerce sites, television shopping, department stores, professional hair and nail salons, one-stop shopping beauty retailers and specialty cosmetic stores in the U.S. and internationally under brands such as Revlon in color cosmetics; Revlon ColorSilk and Revlon Professional in hair color; and Revlon in beauty tools. |
• | Elizabeth Arden - The Elizabeth Arden segment is comprised of the Company's Elizabeth Arden branded products. The Elizabeth Arden segment markets, distributes and sells fragrances, skin care and color cosmetics primarily to prestige retailers, department and specialty stores, perfumeries, boutiques, e-commerce sites, the mass retail channel, travel retailers and distributors, as well as direct sales to consumers via its Elizabeth Arden branded retail stores and elizabetharden.com e-commerce website, in the U.S. and internationally, under brands such as Elizabeth Arden Ceramide, Prevage, Eight Hour, SUPERSTART, Visible Difference and Skin Illuminating in the Elizabeth Arden |
• | Portfolio - The Company’s Portfolio segment markets, distributes and sells a comprehensive line of premium, specialty and mass products primarily to the mass retail channel, hair and nail salons and professional salon distributors in the U.S. and internationally and large volume retailers, specialty and department stores under brands such as Almay and SinfulColors in color cosmetics; American Crew in men's grooming products (which are also sold direct-to-consumer on its americancrew.com website); CND in nail polishes, gel nail color and nail enhancements; Cutex nail care products; Pure Ice in nail polishes; and Mitchum in anti-perspirant deodorants. The Portfolio 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.; and a body care line under the Natural Honey brand and hair color line under the Llongueras brand (licensed from a third party) that are both sold in the mass retail channel, large volume retailers and other retailers, primarily in Spain. |
• | Fragrances - The Fragrances segment includes the development, marketing and distribution of certain owned and licensed fragrances as well as the distribution of prestige fragrance brands owned by third parties. These products are typically sold to retailers in the U.S. and internationally, including prestige retailers, specialty stores, e-commerce sites, the mass retail channel, travel retailers and other international retailers. The owned and licensed fragrances include brands such as Juicy Couture (which are also sold direct-to-consumer on its juicycouturebeauty.com website), Britney Spears, Elizabeth Taylor, Curve, John Varvatos, Christina Aguilera, Giorgio Beverly Hills, Ed Hardy, Charlie, Lucky Brand, Paul Sebastian, Alfred Sung, Jennifer Aniston, Mariah Carey, Halston, Geoffrey Beene, La Perla, White Shoulders, AllSaints and Wildfox. |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Segment Net Sales: | |||||||
Revlon | $ | 247.3 | $ | 229.1 | |||
Elizabeth Arden | 111.4 | 105.7 | |||||
Portfolio | 117.2 | 134.5 | |||||
Fragrances | 77.3 | 91.4 | |||||
Total | $ | 553.2 | $ | 560.7 | |||
Segment Profit: | |||||||
Revlon | $ | 25.6 | $ | 2.3 | |||
Elizabeth Arden | 1.9 | 1.5 | |||||
Portfolio | 4.5 | (2.8 | ) | ||||
Fragrances | 6.8 | 3.2 | |||||
Total | $ | 38.8 | $ | 4.2 | |||
Reconciliation: | |||||||
Total Segment Profit | $ | 38.8 | $ | 4.2 | |||
Less: | |||||||
Depreciation and amortization | 47.0 | 38.7 | |||||
Non-cash stock compensation expense | 0.4 | 7.7 | |||||
Non-Operating items: | |||||||
Restructuring and related charges | 12.1 | 5.5 | |||||
Acquisition and integration costs | 0.6 | 4.0 | |||||
Oxford ERP system disruption-related charges | — | 10.0 | |||||
Financial control remediation actions and related charges | 2.0 | — | |||||
Operating loss | (23.3 | ) | (61.7 | ) | |||
Less: | |||||||
Interest Expense | 47.7 | 39.9 | |||||
Amortization of debt issuance costs | 3.2 | 2.3 | |||||
Foreign currency losses (gains), net | 0.2 | (10.6 | ) | ||||
Miscellaneous, net | 1.3 | — | |||||
Loss from continuing operations before income taxes | $ | (75.7 | ) | $ | (93.3 | ) |
Three Months Ended March 31, 2019 | ||||||||||||||||||||
Revlon | Elizabeth Arden | Portfolio | Fragrances | Total | ||||||||||||||||
Geographic Area: | ||||||||||||||||||||
Net Sales | ||||||||||||||||||||
North America | $ | 133.2 | $ | 28.2 | $ | 70.1 | $ | 47.2 | $ | 278.7 | ||||||||||
EMEA* | 55.7 | 44.5 | 37.8 | 21.8 | 159.8 | |||||||||||||||
Asia | 23.9 | 31.6 | 0.8 | 3.5 | 59.8 | |||||||||||||||
Latin America* | 13.7 | 2.3 | 5.2 | 1.8 | 23.0 | |||||||||||||||
Pacific* | 20.8 | 4.8 | 3.3 | 3.0 | 31.9 | |||||||||||||||
$ | 247.3 | $ | 111.4 | $ | 117.2 | $ | 77.3 | $ | 553.2 |
Three Months Ended March 31, 2018 | ||||||||||||||||||||
Revlon | Elizabeth Arden | Portfolio | Fragrances | Total | ||||||||||||||||
Geographic Area: | ||||||||||||||||||||
Net Sales | ||||||||||||||||||||
North America | $ | 116.2 | $ | 28.9 | $ | 81.9 | $ | 56.4 | $ | 283.4 | ||||||||||
EMEA* | 54.0 | 46.3 | 43.2 | 24.7 | 168.2 | |||||||||||||||
Asia | 25.6 | 23.3 | 1.0 | 2.8 | 52.7 | |||||||||||||||
Latin America* | 13.9 | 2.2 | 5.3 | 4.1 | 25.5 | |||||||||||||||
Pacific* | 19.4 | 5.0 | 3.1 | 3.4 | 30.9 | |||||||||||||||
$ | 229.1 | $ | 105.7 | $ | 134.5 | $ | 91.4 | $ | 560.7 |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | ||||||||||
Classes of similar products: | |||||||||||
Net sales: | |||||||||||
Color cosmetics | $ | 202.8 | 37% | $ | 199.1 | 36% | |||||
Fragrance | 110.3 | 20% | 124.3 | 22% | |||||||
Hair care | 128.7 | 23% | 125.7 | 22% | |||||||
Beauty care | 41.1 | 7% | 44.7 | 8% | |||||||
Skin care | 70.3 | 13% | 66.9 | 12% | |||||||
$ | 553.2 | $ | 560.7 |
March 31, 2019 | December 31, 2018 | ||||||||||
Long-lived assets, net: | |||||||||||
United States | $ | 1,494.0 | 85% | $ | 1,416.2 | 84% | |||||
International | 268.2 | 15% | 275.0 | 16% | |||||||
$ | 1,762.2 | $ | 1,691.2 |
Three months ended March 31, | ||||||||
2019 | 2018 | |||||||
Numerator: | ||||||||
Loss from continuing operations, net of taxes | $ | (75.8 | ) | $ | (91.7 | ) | ||
Income from discontinued operations, net of taxes | 0.7 | 1.4 | ||||||
Net loss | $ | (75.1 | ) | $ | (90.3 | ) | ||
Denominator: | ||||||||
Weighted-average common shares outstanding – Basic | 52,913,388 | 52,673,672 | ||||||
Effect of dilutive restricted stock | — | — | ||||||
Weighted-average common shares outstanding – Diluted | 52,913,388 | 52,673,672 | ||||||
Basic loss per common share: | ||||||||
Continuing operations | $ | (1.43 | ) | $ | (1.74 | ) | ||
Discontinued operations | 0.01 | 0.03 | ||||||
Net loss per common share | $ | (1.42 | ) | $ | (1.71 | ) | ||
Diluted loss per common share: | ||||||||
Continuing operations | $ | (1.43 | ) | $ | (1.74 | ) | ||
Discontinued operations | 0.01 | 0.03 | ||||||
Net loss per common share | $ | (1.42 | ) | $ | (1.71 | ) | ||
Unvested restricted stock and RSUs under the Stock Plan(a) | 571,069 | 104,411 |
(a) | These are outstanding common stock equivalents that were not included in the computation of diluted earnings per common share because their inclusion would have had an anti-dilutive effect. |
• | $39.1 million of lower SG&A expenses, primarily driven by lower brand support expenses and lower costs associated with the departure of certain executives; |
• | $10.8 million of unfavorable variance in foreign currency, resulting from $0.2 million in foreign currency losses during the first quarter of 2019, compared to $10.6 million in foreign currency gains during the first quarter of 2018; |
• | a $7.8 million increase in interest expense, primarily due to higher average interest rates and higher borrowings under the Amended 2016 Revolving Credit Facility and higher indebtedness resulting from entering into the 2018 Foreign Asset-Based Term Facility in July 2018; |
• | $2.7 million of lower gross profit, primarily due to lower net sales; and |
• | a $1.7 million increase in the provision for income taxes, primarily due to: (i) the decreased loss from continuing operations before income taxes; (ii) the mix and level of earnings; (iii) valuation allowances recorded in the current quarter; (iv) the limitation on the deductibility of interest; and (v) the U.S. tax on the Company's foreign earnings. |
• | Revlon - The Revlon segment is comprised of the Company's flagship Revlon brands. Revlon segment products are primarily marketed, distributed and sold in the mass retail channel, large volume retailers, chain drug and food stores, chemist shops, hypermarkets, general merchandise stores, e-commerce sites, television shopping, department stores, professional hair and nail salons, one-stop shopping beauty retailers and specialty cosmetic stores in the U.S. and internationally under brands such as Revlon in color cosmetics; Revlon ColorSilk and Revlon Professional in hair color; and Revlon in beauty tools. |
• | Elizabeth Arden - The Elizabeth Arden segment is comprised of the Company's Elizabeth Arden branded products. The Elizabeth Arden segment markets, distributes and sells fragrances, skin care and color cosmetics primarily to prestige retailers, department and specialty stores, perfumeries, boutiques, e-commerce sites, the mass retail channel, 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 Elizabeth Arden Ceramide, Prevage, Eight Hour, SUPERSTART, Visible Difference and Skin Illuminating in the Elizabeth Arden skin care brands; and Elizabeth Arden White Tea, Elizabeth Arden Red Door, Elizabeth Arden 5th Avenue and Elizabeth Arden Green Tea in Elizabeth Arden fragrances. |
• | Portfolio - The Company’s Portfolio segment markets, distributes and sells a comprehensive line of premium, specialty and mass products primarily to the mass retail channel, hair and nail salons and professional salon distributors in the U.S. and internationally and large volume retailers, specialty and department stores under brands such as Almay |
• | Fragrances - The Fragrances segment includes the development, marketing and distribution of certain owned and licensed fragrances, as well as the distribution of prestige fragrance brands owned by third parties. These products are typically sold to retailers in the U.S. and internationally, including prestige retailers, specialty stores, e-commerce sites, the mass retail channel, travel retailers and other international retailers. The owned and licensed fragrances include brands such as Juicy Couture (which are also sold direct-to-consumer on its juicycouturebeauty.com website), Britney Spears, Elizabeth Taylor, Curve, John Varvatos, Christina Aguilera, Giorgio Beverly Hills, Ed Hardy, Charlie, Lucky Brand, Paul Sebastian, Alfred Sung, Jennifer Aniston, Mariah Carey, Halston, Geoffrey Beene, La Perla, White Shoulders, AllSaints and Wildfox. |
Net Sales | Segment Profit | ||||||||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, | Change | XFX Change (a) | Three Months Ended March 31, | Change | XFX Change (a) | ||||||||||||||||||||||||||||||||||||||
2019 | 2018 | $ | % | $ | % | 2019 | 2018 | $ | % | $ | % | ||||||||||||||||||||||||||||||||
Revlon | $ | 247.3 | $ | 229.1 | $ | 18.2 | 7.9 | % | $ | 26.9 | 11.7 | % | $ | 25.6 | $ | 2.3 | $ | 23.3 | N.M. | $ | 24.8 | N.M. | |||||||||||||||||||||
Elizabeth Arden | 111.4 | 105.7 | 5.7 | 5.4 | % | 10.0 | 9.5 | % | 1.9 | 1.5 | 0.4 | 26.7 | % | 1.0 | 66.7 | % | |||||||||||||||||||||||||||
Portfolio | 117.2 | 134.5 | (17.3 | ) | (12.9 | )% | (12.0 | ) | (8.9 | )% | 4.5 | (2.8 | ) | 7.3 | N.M. | 7.5 | N.M. | ||||||||||||||||||||||||||
Fragrances | 77.3 | 91.4 | (14.1 | ) | (15.4 | )% | (11.9 | ) | (13.0 | )% | 6.8 | 3.2 | 3.6 | 112.5 | % | 3.7 | 115.6 | % | |||||||||||||||||||||||||
Total | $ | 553.2 | $ | 560.7 | $ | (7.5 | ) | (1.3 | )% | $ | 13.0 | 2.3 | % | $ | 38.8 | $ | 4.2 | $ | 34.6 | N.M. | $ | 37.0 | N.M. |
Three Months Ended March 31, | Change | XFX Change (a) | |||||||||||||||||||
2019 | 2018 | $ | % | $ | % | ||||||||||||||||
Revlon | |||||||||||||||||||||
North America | $ | 133.2 | $ | 116.2 | $ | 17.0 | 14.6 | % | $ | 17.4 | 15.0 | % | |||||||||
International | 114.1 | 112.9 | 1.2 | 1.1 | % | 9.5 | 8.4 | % | |||||||||||||
Elizabeth Arden | |||||||||||||||||||||
North America | $ | 28.2 | $ | 28.9 | $ | (0.7 | ) | (2.4 | )% | $ | (0.4 | ) | (1.4 | )% | |||||||
International | 83.2 | 76.8 | 6.4 | 8.3 | % | 10.4 | 13.5 | % | |||||||||||||
Portfolio | |||||||||||||||||||||
North America | $ | 70.1 | $ | 81.9 | $ | (11.8 | ) | (14.4 | )% | $ | (11.5 | ) | (14.0 | )% | |||||||
International | 47.1 | 52.6 | (5.5 | ) | (10.5 | )% | (0.5 | ) | (1.0 | )% | |||||||||||
Fragrances | |||||||||||||||||||||
North America | $ | 47.2 | $ | 56.4 | $ | (9.2 | ) | (16.3 | )% | $ | (9.1 | ) | (16.1 | )% | |||||||
International | 30.1 | 35.0 | (4.9 | ) | (14.0 | )% | (2.8 | ) | (8.0 | )% | |||||||||||
Total Net Sales | $ | 553.2 | $ | 560.7 | $ | (7.5 | ) | (1.3 | )% | $ | 13.0 | 2.3 | % |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | Change | |||||||||
Gross profit | $ | 315.4 | $ | 318.1 | $ | (2.7 | ) | ||||
Percentage of net sales | 57.0 | % | 56.7 | % | 0.3 | % |
• | the impact of additional costs related to the service level disruptions at the Company's Oxford, N.C. manufacturing facility in the first quarter of 2018, which did not occur in the first quarter of 2019 and resulted in an increase to the gross margin of 4.3 percentage points; |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | Change | |||||||||
SG&A expenses | $ | 332.6 | $ | 371.7 | $ | (39.1 | ) |
• | a $28.8 million decrease in brand support expenses driven by planned lower activity in the quarter to align marketing initiatives with in-store customer resets and new product launches, primarily within the Revlon and Portfolio segments; |
• | favorable FX impact of approximately $10 million; and |
• | lower general and administrative expenses of approximately $8.0 million, primarily driven by higher costs in the first quarter of 2018 associated with the departure of certain executives and lower travel expenses. |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | Change | |||||||||
Acquisition Costs | $ | — | $ | 0.1 | $ | (0.1 | ) | ||||
Integration Costs | 0.6 | 3.9 | (3.3 | ) | |||||||
Total acquisition and integration costs | $ | 0.6 | $ | 4.0 | $ | (3.4 | ) |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | Change | |||||||||
Restructuring charges and other, net | $ | 5.5 | $ | 4.1 | $ | 1.4 |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | Change | |||||||||
Interest expense | $ | 47.7 | $ | 39.9 | $ | 7.8 |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | Change | |||||||||
Foreign currency losses (gains), net | $ | 0.2 | $ | (10.6 | ) | $ | 10.8 |
Three Months Ended March 31, | |||||||||||
2019 | 2018 | Change | |||||||||
Provision (benefit) from income taxes | $ | 0.1 | $ | (1.6 | ) | $ | 1.7 |
Three Months Ended March 31, | |||||||
2019 | 2018 | ||||||
Net cash used in operating activities | $ | (28.4 | ) | $ | (97.3 | ) | |
Net cash used in investing activities | (5.8 | ) | (13.7 | ) | |||
Net cash provided by financing activities | 16.2 | 77.2 | |||||
Effect of exchange rate changes on cash and cash equivalents | 0.3 | 2.9 | |||||
Net decrease in cash, cash equivalents and restricted cash | (17.7 | ) | (30.9 | ) | |||
Cash, cash equivalents and restricted cash at beginning of period | 87.5 | 87.4 | |||||
Cash, cash equivalents and restricted cash at end of period | $ | 69.8 | $ | 56.5 |
• | $40.6 million of borrowings under the Amended 2016 Revolving Credit Facility; and |
• | $4.5 million of repayments under the 2016 Term Loan Facility; |
• | 17.2 million of decreases in short-term borrowings and overdraft; and |
• | $0.9 million of payment of financing costs incurred in connection with the Amendment No. 2 to the Amended 2016 Revolving Credit Facility. |
• | $83.8 million of borrowings under the Amended 2016 Revolving Credit Facility; |
• | $4.5 million of repayments under the 2016 Term Loan Facility. |
Commitment | Borrowing Base | Aggregate principal amount outstanding at March 31, 2019 | Availability at March 31, 2019(a) | ||||||||||||
Tranche A of the Amended 2016 Revolving Credit Facility | $ | 400.0 | $ | 390.9 | $ | 338.2 | $ | 41.8 | |||||||
Tranche B of the Amended 2016 Revolving Credit Facility | 41.5 | 37.5 | 37.5 | — | |||||||||||
Total Tranche A& B of the Amended 2016 Revolving Credit Facility(a) | $ | 441.5 | 428.4 | $ | 375.7 | $ | 41.8 |
(i) | the Company did not perform an effective continuous risk assessment process that adequately identified and assessed risks affecting the Company's internal controls over financial reporting associated with the implementation of its new ERP system in the U.S.; |
(ii) | the Company did not maintain a sufficient number of knowledgeable, trained personnel in the U.S. operations impacted by the ERP system implementation and in various other operations across the Company who understood and were held accountable for their assigned responsibilities for the design, implementation and operation of internal controls over financial reporting; and |
(iii) | as a result, the Company did not design, implement and consistently operate effective process-level controls to ensure that it appropriately (a) recorded and accounted for inventory, accounts receivable, net sales and cost of goods sold, (b) reconciled balance sheet accounts, (c) reviewed and approved the complete population of manual journal entries and (d) used complete and accurate information in performing manual controls. |
(i) | the Company's future financial performance and/or sales growth; |
(ii) | the effect on sales of decreased consumer spending in response to weak economic conditions or weakness in the consumption of beauty products in one or more of the Company's segments; adverse changes in tariffs, foreign currency exchange rates, foreign currency controls and/or government-mandated pricing controls; decreased sales of the Company’s products as a result of increased competitive activities by the Company’s competitors and/or decreased performance by third-party suppliers, whether due to shortages of raw materials or otherwise, changes in consumer purchasing habits, including with respect to retailer preferences and/or among sales channels, such as due to the continuing consumption declines in core beauty categories in the mass retail channel in North America; inventory management by the Company's customers; inventory de-stocking by certain retail customers; space reconfigurations or reductions in display space by the Company's customers; retail store closures in the brick-and-mortar channels where the Company sells its products, as consumers continue to shift purchases to online and e-commerce channels; changes in pricing, marketing, advertising and/or promotional strategies by the Company's customers; less than anticipated results from the Company’s existing or new products or from its advertising, promotional, pricing and/or marketing plans; or if the Company’s expenses, including, without limitation, for the purchase of permanent displays, capital expenditures, debt service payments and costs, cash tax payments, pension and other post-retirement plan contributions, payments in connection with the Company’s restructuring programs (such as the EA Integration Restructuring Program and the 2018 Optimization Program), severance not otherwise included in the Company’s restructuring programs, business and/or brand acquisitions (including, without limitation, through licensing transactions), if any, debt and/or equity repurchases, if any, costs related to litigation, discontinuing non-core business lines and/or entering and/or exiting certain territories and/or channels of trade, advertising, promotional and marketing activities or for sales returns related to any reduction of space by the Company's customers, product discontinuances or otherwise, exceed the anticipated level of expenses; |
(iii) | the Company's belief that continuing to execute its business initiatives could include taking advantage of additional opportunities to reposition, repackage or reformulate one or more brands or product lines, launching additional new products, acquiring businesses or brands (including through licensing transactions, if any), divesting or discontinuing non-core business lines (which may include exiting certain territories), further refining its approach to retail merchandising and/or taking further actions to optimize its manufacturing, sourcing and organizational size and structure, any of which, the intended purpose would be to create value through improving the Company's financial performance, could result in the Company making investments and/or recognizing charges related to executing against such opportunities, which activities may be funded with operating revenues, cash on hand, funds available under the Amended 2016 Revolving Credit Facility and/or other permitted additional sources of capital, which actions could increase the Company's total debt; |
(iv) | the Company’s plans to remain focused on its 3 key strategic pillars to drive its future success and growth, including (1) strengthening its iconic brands through innovation and relevant product portfolios; (2) building its capabilities to better communicate and connect with its consumers through media channels where they spend the most time; and (3) ensuring availability of its product where consumers shop, both in-store and increasingly online; |
(v) | the effect of restructuring activities, restructuring costs and charges, the timing of restructuring payments and the benefits from such activities, including, without limitation: (A) in connection with implementing the EA Integration Restructuring Program: (1) consolidating offices, eliminating certain duplicative activities and streamlining back-office support (which are designed to reduce the Company's SG&A expenses); and (2) recognizing $82.2 million of the EA Integration Restructuring Charges (all of which are expected to be cash payments), consisting of: (x) $72.2 million of employee-related costs, including severance, retention and other contractual termination benefits; (y) $5.1 million of lease termination costs; and (z) $4.9 million of other related charges; (B) the Company's 2018 Optimization Program designed to streamline the Company’s operations, reporting structures and business processes, with the objective of maximizing productivity and improving profitability, cash flows and liquidity, with the major initiatives underlying such program including: (1) optimizing its global supply chain and realizing manufacturing efficiencies and rationalizing its global warehouse network and office locations to drive greater efficiency, lower its cost base and enhance its speed-to-market capabilities for new innovations; (2) enhancing in-market execution and optimizing its commercial and organizational structures to create more efficient global and regional capabilities; and (3) reducing overhead costs and streamlining functions and workflows by leveraging technology and shared services and standardizing and simplifying its business processes, leading to greater agility and faster decision-making; (C) the Company’s expectations regarding the amount and timing of the charges and payments related to the 2018 Optimization Program, including that: (1) it will recognize approximately $30 million to $40 million of total pre-tax restructuring and related charges, consisting of employee-related costs, such as severance, pension and other termination costs, as well as related third party expenses; (2) it will incur approximately $10 million of additional capital expenditures; (3) of the restructuring charges, it recorded pre-tax restructuring charges of $11.7 million in the three months ended March 31, 2019, related to the 2018 Optimization Program, with substantially all of the balance to be recognized in 2019; and (4) approximately 85% of the restructuring charges are to be paid in cash, with approximately $3.8 million paid through March 31, 2019 and $22 million to $30 million, with any remaining balance to be paid in 2020; (D) the Company’s expectation that the actions to be implemented under the 2018 Optimization Program will be substantially completed by December 31, 2019; and (E) the Company’s projection that the 2018 Optimization Program will result in annualized cost reductions in the range of approximately $125 million to $150 million by the end of 2019; |
(vi) | the Company’s expectation that operating revenues, cash on hand and funds that may be available from time to time for borrowing under Products Corporation's Amended 2016 Revolving Credit Facility and other permitted lines of credit will be sufficient to enable the Company to cover its operating expenses for 2019, including the cash requirements referred to in item (viii) below, and the Company's belief that (a) after giving effect to Amendment No. 2 to the Amended 2016 Revolving Credit Facility it continues to have sufficient liquidity to meet its cash needs for at least the next 12 months based upon the cash generated by its operations, cash on hand, availability under the Amended 2016 Revolving Credit Facility and other permitted lines of credit, along with the option to further settle intercompany loans and payables with certain foreign subsidiaries, and that such cash resources will be further enhanced as the Company implements its 2018 Optimization Program and cost reductions generated from other cost control initiatives and (b) restrictions and/or taxes on repatriation of foreign earnings will not have a material effect on the Company's liquidity during such period; |
(vii) | the Company’s expected principal sources of funds, including operating revenues, cash on hand and funds available for borrowing under Products Corporation's Amended 2016 Revolving Credit Facility and other permitted lines of credit, as well as the availability of funds from the Company taking certain measures, including, among other things, reducing discretionary spending and the Company’s expectation to generate additional liquidity from cost reductions resulting from the implementation of the 2018 Optimization Program and from other cost reduction initiatives; |
(viii) | the Company's expected principal uses of funds, including amounts required for payment of operating expenses including in connection with the purchase of permanent wall displays; capital expenditure requirements; debt service payments and costs; cash tax payments; pension and other post-retirement benefit plan contributions; payments in connection with the Company’s restructuring programs, such as the EA Integration Restructuring Program and the 2018 Optimization Program; severance not otherwise included in the Company’s restructuring programs; business and/or brand acquisitions (including, without limitation, through licensing transactions), if any; debt and/or equity repurchases, if any; costs related to litigation; and payments in connection with discontinuing non-core business lines and/or exiting and/or entering certain territories and/or channels of trade (including, without limitation, that the Company may also, from time-to-time, seek to retire or purchase its outstanding debt obligations and/or equity in open market purchases, block trades, privately negotiated purchase transactions or otherwise and may seek to refinance some or all of its indebtedness based upon market conditions and that any such retirement or purchase of debt and/or equity may be funded with operating cash flows of the business or other sources and will depend upon prevailing market conditions, liquidity requirements, contractual restrictions and other factors, and the amounts involved may be material); and its estimates of the amount and timing of such operating and other expenses; |
(ix) | matters concerning the impact on the Company from changes in interest rates and foreign exchange rates; |
(x) | the Company's expectation to efficiently manage its working capital, including, among other things, initiatives intended to optimize inventory levels over time; centralized procurement to secure discounts and efficiencies; prudent management of trade receivables, accounts payable and controls on general and administrative spending; and the Company’s belief that in the ordinary course of business, its source or use of cash from operating activities may vary on a quarterly basis as a result of a number of factors, including the timing of working capital flows; |
(xi) | the Company’s expectations regarding its future net periodic benefit cost for its U.S. and international defined benefit plans; |
(xii) | the Company's expectation that its tax provision and effective tax rate in any individual quarter and year-to-date period will vary and may not be indicative of the Company's tax provision and effective tax rate for the full year and, with respect to the Tax Act, the Company’s expectation that the Tax Act’s limitation on interest deductibility will not impact the Company’s 2019 federal cash taxes due to its net operating loss carryover position, and that the Tax Act will not have a material impact on its cash taxes or liquidity in 2019, as well as the Company's expectations regarding whether it will be required to establish additional valuation allowances on its deferred tax assets; |
(xiii) | the Company's belief that the outcome of all pending legal proceedings in the aggregate is not reasonably likely to have a material adverse effect on the Company’s business, prospects, results of operations, financial condition and/or cash flows, but that in light of the uncertainties involved in legal proceedings generally, the ultimate outcome of a particular matter could be material to the Company’s operating results for a particular period depending on, among other things, the size of the loss or the nature of the liability imposed and the level of the Company’s income for that particular period; and |
(xiv) | the Company’s expectations regarding its implementation of the remediation plan to address the material weakness that it identified in its internal control over financial reporting, as described in Item 4. “Controls and Procedures” of this Form 10-Q. |
(i) | unanticipated circumstances or results affecting the Company's financial performance and or sales growth, including: greater than anticipated levels of consumers choosing to purchase their beauty products through e-commerce and other social media channels and/or greater than anticipated declines in the brick-and-mortar retail channel, or either of those conditions occurring at a rate faster than anticipated; the Company’s inability to address the pace and impact of the new commercial landscape, such as its inability to enhance its e-commerce and social media capabilities and/or increase its penetration of e-commerce and social media channels; the Company’s inability to drive a successful long-term omni-channel strategy and significantly increase its e-commerce penetration; difficulties, delays and/or the Company's inability to (in whole or in part) develop and implement effective content to enhance its online retail position, improve its consumer engagement across social media platforms and/or transform its technology and data to support efficient management of its digital infrastructure; the Company incurring greater than anticipated levels of expenses and/or debt to facilitate the foregoing objectives, which could result in, among other things, less than anticipated revenues and/or profitability; decreased consumer spending in response to weak economic conditions or weakness in the consumption of beauty products in one or more of the Company's segments; adverse changes in tariffs, foreign currency exchange rates, foreign currency controls and/or government-mandated pricing controls; decreased sales of the Company's products as a result of increased competitive activities by the Company's competitors; decreased performance by third-party suppliers, whether due to shortages of raw materials or otherwise; and/or supply disruptions at the Company’s manufacturing facilities; changes in consumer preferences, such as reduced consumer demand for the Company's color cosmetics and other current products, including new product launches; changes in consumer purchasing habits, including with respect to retailer preferences and/or among sales channels, such as due to the continuing consumption declines in core beauty categories in the mass retail channel in North America; lower than expected customer acceptance or consumer acceptance of, or less than anticipated results from, the Company’s existing or new products; higher than expected retail store closures in the brick-and-mortar channels where the Company sells its products, as consumers continue to shift purchases to online and e-commerce channels; higher than expected purchases of permanent displays, capital expenditures, debt service payments and costs, cash tax payments, pension and other post-retirement plan contributions, payments in connection with the Company’s restructuring programs (such as the EA Integration Restructuring Program and the 2018 Optimization Program), severance not otherwise included in the Company’s restructuring programs, business and/or brand acquisitions (including, without limitation, through licensing transactions), if any, debt and/or equity repurchases, if any, costs related to litigation, discontinuing non-core business lines and/or entering and/or exiting certain territories and/or channels of trade, advertising, promotional and marketing activities or for sales returns related to any reduction of space by the Company's customers, product discontinuances or otherwise or lower than expected results from the Company’s advertising, promotional, pricing and/or marketing plans; decreased sales of the Company’s existing or new products; actions by the Company’s customers, such as greater than expected inventory management and/or de-stocking, and greater than anticipated space reconfigurations or reductions in display space and/or product discontinuances or a greater than expected impact from pricing, marketing, advertising and/or promotional strategies by the Company's customers; and changes in the competitive environment and actions by the Company's competitors, including, among other things, business combinations, technological breakthroughs, implementation of new pricing strategies, new product offerings, increased advertising, promotional and marketing spending and advertising, promotional and/or marketing successes by competitors; |
(ii) | in addition to the items discussed in (i) above, the effects of and changes in economic conditions (such as volatility in the financial markets, inflation, increasing interest rates, monetary conditions and foreign currency fluctuations, tariffs, foreign currency controls and/or government-mandated pricing controls, as well as in trade, monetary, fiscal and tax policies in international markets) and political conditions (such as military actions and terrorist activities); |
(iii) | unanticipated costs or difficulties or delays in completing projects associated with continuing to execute the Company’s business initiatives or lower than expected revenues or the inability to create value through improving the Company's financial performance as a result of such initiatives, including lower than expected sales, or higher than expected costs, including as may arise from any additional repositioning, repackaging or reformulating of one or more brands or product lines, launching of new product lines, including higher than expected expenses, including for sales returns, for launching its new products, acquiring businesses or brands (including through licensing transactions, if any), divesting or discontinuing non-core business lines (which may include exiting certain territories or converting the Company's go-to-trade structure in certain countries to other business models), further refining its approach to retail merchandising and/or difficulties, delays or increased costs in connection with taking further actions to optimize the Company’s manufacturing, sourcing, supply chain or organizational size and structure (including difficulties or delays in and/or the Company’s inability to optimally implement the EA Integration Restructuring Program and/or the 2018 Optimization Program and/or less than expected benefits from such programs and/or more than expected costs in implementing such programs, which could cause the Company not to realize the projected cost reductions), as well as the unavailability of cash generated by operations, cash on hand and/or funds under the Amended 2016 Revolving Credit Facility or from other permitted additional sources of capital to fund such potential activities, as well as the unavailability of funds due to potential mandatory repayment obligations under the 2018 Foreign Asset-Based Term Facility; |
(iv) | difficulties, delays in or less than expected results from the Company’s efforts to execute on its 3 key strategic pillars to drive its future success and growth, including, without limitation: (1) less than effective new product development and innovation, less than expected acceptance of its new products and innovations by the Company’s consumers and/or customers in one or more of its segments and/or less than expected levels of execution vis-à-vis its new product launches with its customers in one or more of its segments or regions; (2) less than expected levels of advertising, promotional and/or marketing activities for its new product launches, less than expected acceptance of its advertising, promotional, pricing and/or marketing plans and/or brand communication by consumers and/or customers in one or more of its segments, less than expected investment in advertising, promotional and/or marketing activities or greater than expected competitive investment; and/or (3) difficulties or disruptions impacting the Company’s ability to ensure availability of its product where consumers shop, both in-store and increasingly online; |
(v) | difficulties, delays or unanticipated costs or charges or less than expected cost reductions and other benefits resulting from the Company's restructuring activities, such as in connection with the 2018 Optimization Program: (1) difficulties with, delays in or the Company’s inability to successfully complete the actions underlying the 2018 Optimization Program, in whole or in part, which could result in less than expected operating and financial benefits from such actions, such as difficulties with, delays in or the Company’s inability to generate reductions in its cost base and/or overhead costs; (2) higher than anticipated restructuring charges and/or payments and/or changes in the expected timing of such charges and/or payments; (3) delays in completing the actions underlying the 2018 Optimization Program, which could reduce and/or defer the benefits expected to be realized from such activities; and/or (4) less than anticipated annualized cost reductions from the 2018 Optimization Program and/or changes in the timing of realizing such cost reductions, such as due to less than anticipated resources to fund such activities and/or more than expected costs to achieve the expected cost reductions; |
(vi) | lower than expected operating revenues, cash on hand and/or funds available under the Amended 2016 Revolving Credit Facility and/or other permitted lines of credit or generated from cost reductions related to the 2018 Optimization Program and/or other cost control initiatives; higher than anticipated operating expenses, such as referred to in clause (viii) below; and/or less than anticipated cash generated by the Company's operations or unanticipated restrictions or taxes on repatriation of foreign earnings; |
(vii) | the unavailability of funds under Products Corporation's Amended 2016 Revolving Credit Facility or other permitted lines of credit; the unavailability of funds under the 2018 Foreign Asset-Based Term Facility, such as due to reductions in the applicable borrowing base that could require certain mandatory prepayments; the unavailability of funds from difficulties, delays in or the Company's inability to take other measures, such as reducing discretionary spending and/or less than expected liquidity from cost reductions resulting from the implementation of the 2018 Optimization Program and from other cost reduction initiatives; |
(viii) | higher than expected operating expenses, such as higher than expected purchases of permanent displays, capital expenditures, debt service payments and costs, cash tax payments, pension and other post-retirement plan contributions, payments in connection with the Company’s restructuring programs (such as the EA Integration Restructuring Program and the 2018 Optimization Program), severance not otherwise included in the Company’s restructuring programs, business and/or brand acquisitions (including, without limitation, through licensing transactions), if any, debt and/or equity repurchases, if any, costs related to litigation, discontinuing non-core business lines and/or entering and/or exiting certain territories and/or channels of trade, advertising, promotional and marketing activities or for sales returns related to any reduction of space by the Company's customers, product discontinuances or otherwise; |
(ix) | unexpected significant impacts on the Company from changes in interest rates or foreign exchange rates; |
(x) | difficulties, delays or the inability of the Company to efficiently manage its cash and working capital; |
(xi) | lower than expected returns on pension plan assets and/or lower discount rates, which could result in higher than expected cash contributions, higher net periodic benefit costs and/or less than expected net periodic benefit income; |
(xii) | unexpected significant variances in the Company's tax provision, effective tax rate and/or unrecognized tax benefits, whether due to the enactment of the Tax Act or otherwise, such as due to the issuance of unfavorable guidance, interpretations, technical clarifications and/or technical corrections legislation by the U.S. Congress, the U.S. Treasury Department or the IRS, unexpected changes in foreign, state or local tax regimes in response to the Tax Act, and/or changes in estimates that may impact the calculation of the Company's tax provisions, as well as changes in circumstances that could adversely impact the Company's expectations regarding the establishment of additional valuation allowances on its deferred tax assets; |
(xiii) | unanticipated adverse effects on the Company’s business, prospects, results of operations, financial condition and/or cash flows as a result of unexpected developments with respect to the Company's legal proceedings; and/or |
(xiv) | difficulties or delays that could affect the Company's ability to effectively implement the remediation plan, in whole or in part, to address the material weakness that it identified in its internal control over financial reporting, as described in Item 4. "Controls and Procedures" of this Form 10-Q. |
4.1 | |
*31.1 | |
*31.2 | |
**32.1 | |
**32.2 | |
*101.INS | XBRL Instance Document |
*101.SCH | XBRL Taxonomy Extension Schema |
*101.CAL | XBRL Taxonomy Extension Calculation Linkbase |
*101.DEF | XBRL Taxonomy Extension Definition Linkbase |
*101.LAB | XBRL Taxonomy Extension Label Linkbase |
*101.PRE | XBRL Taxonomy Extension Presentation Linkbase |
Revlon, Inc. | ||||
(Registrant) | ||||
By: /s/ Debra Perelman | By: /s/ Victoria Dolan | By: /s/ Pamela Bucher | ||
Debra Perelman | Victoria Dolan | Pamela Bucher | ||
President, Chief Executive Officer & | Chief Financial Officer | Vice President, | ||
Director | Chief Accounting Officer | |||
& Controller |
1. | I have reviewed this quarterly report on Form 10-Q (the "Report") of Revlon, Inc. (the "Registrant"); |
2. | Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report; |
4. | The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
5. | The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): |
1. | I have reviewed this quarterly report on Form 10-Q (the "Report") of Revlon, Inc. (the "Registrant"); |
2. | Based on my knowledge, this Report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this Report; |
3. | Based on my knowledge, the financial statements, and other financial information included in this Report, fairly present in all material respects the financial condition, results of operations and cash flows of the Registrant as of, and for, the periods presented in this Report; |
4. | The Registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the Registrant and have: |
5. | The Registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the Registrant's auditors and the audit committee of the Registrant's board of directors (or persons performing the equivalent functions): |
Document and Entity Information |
3 Months Ended |
---|---|
Mar. 31, 2019
shares
| |
Document and Entity Information [Abstract] | |
Document Type | 10-Q |
Amendment Flag | false |
Document Period End Date | Mar. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | Q1 |
Trading Symbol | REV |
Entity Registrant Name | REVLON INC /DE/ |
Entity Central Index Key | 0000887921 |
Current Fiscal Year End Date | --12-31 |
Entity Current Reporting Status | Yes |
Entity Filer Category | Accelerated Filer |
Entity Common Stock, Shares Outstanding | 53,032,087 |
Entity Emerging Growth Company | false |
Entity Small Business | true |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Allowance for doubtful accounts on trade receivables | $ 16.1 | $ 15.6 |
Accumulated depreciation on property, plant and equipment | 444.7 | 425.2 |
Accumulated amortization on intangible assets | $ 201.0 | $ 187.3 |
Class A Common Stock | ||
Common Stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common Stock, authorized (in shares) | 900,000,000 | 900,000,000 |
Common Stock, issued (in shares) | 55,761,545 | 55,556,466 |
Treasury stock (in shares) | 1,624,719 | 1,533,320 |
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Income Statement [Abstract] | ||
Amortization of pension related costs, tax benefit (expense) | $ (0.3) | $ (0.3) |
Reclassification into earnings of accumulated losses from the de-designated 2013 Interest Rate Swap, tax expense (benefit) | $ 0.2 |
UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY - USD ($) $ in Millions |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | $ (1,056.8) | $ (770.4) | |||||
Treasury stock acquired, at cost | [1] | (1.6) | (2.9) | ||||
Stock-based compensation amortization | 0.4 | 7.7 | |||||
Net loss | (75.1) | (90.3) | |||||
Other comprehensive income (loss), net | [2] | 0.9 | 0.2 | ||||
Ending balance | (1,132.2) | (855.7) | |||||
Common Stock | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | 0.5 | 0.5 | |||||
Ending balance | 0.5 | 0.5 | |||||
Additional Paid-In Capital | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | 1,063.8 | 1,040.0 | |||||
Treasury stock acquired, at cost | [1] | 0.0 | |||||
Stock-based compensation amortization | 0.4 | 7.7 | |||||
Ending balance | 1,064.2 | 1,047.7 | |||||
Treasury Stock | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | (31.9) | (21.7) | |||||
Treasury stock acquired, at cost | [1] | (1.6) | (2.9) | ||||
Ending balance | (33.5) | (24.6) | |||||
Accumulated Deficit | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | (1,855.0) | (1,560.8) | |||||
Net loss | (75.1) | (90.3) | |||||
Ending balance | (1,930.1) | (1,651.1) | |||||
Accumulated Other Comprehensive Loss | |||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Beginning balance | (234.2) | (228.4) | |||||
Other comprehensive income (loss), net | [2] | 0.9 | 0.2 | ||||
Ending balance | $ (233.3) | $ (228.2) | |||||
|
UNAUDITED CONSOLIDATED STATEMENT OF STOCKHOLDERS' DEFICIENCY (Parenthetical) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Tax withholdings related to net share settlements of restricted stock units and awards | $ 1.6 | $ 2.9 |
Restricted Stock and Restricted Stock Units | ||
Shares withheld for withholding taxes (in shares) | 85,607 | 136,583 |
Restricted Stock and Restricted Stock Units | Treasury Stock | Class A Common Stock | ||
Share repurchase price (in usd per share) | $ 18.86 | $ 21.30 |
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions |
3 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net loss | $ (75.1) | $ (90.3) | |||||
Adjustments to reconcile net loss to net cash used in operating activities: | |||||||
Depreciation and amortization | 47.0 | 38.7 | |||||
Foreign currency losses (gains) from re-measurement | 0.2 | (10.5) | |||||
Amortization of debt discount | 0.4 | 0.3 | |||||
Stock-based compensation amortization | 0.4 | 7.7 | |||||
Benefit from deferred income taxes | (5.6) | (18.5) | |||||
Amortization of debt issuance costs | 3.2 | 2.3 | |||||
Loss on sale of certain assets | 0.0 | 0.1 | |||||
Pension and other post-retirement cost | 2.0 | 0.6 | |||||
Change in assets and liabilities: | |||||||
Decrease in trade receivables | 52.4 | 67.6 | |||||
Increase in inventories | (24.0) | (14.6) | |||||
Decrease (increase) in prepaid expenses and other current assets | 1.5 | (46.3) | |||||
Increase in accounts payable | 41.1 | 2.3 | |||||
Decrease in accrued expenses and other current liabilities | (66.7) | (24.1) | |||||
Pension and other post-retirement plan contributions | (1.8) | (1.8) | |||||
Purchases of permanent displays | (9.7) | (14.2) | |||||
Other, net | 6.3 | 3.4 | |||||
Net cash used in operating activities | (28.4) | (97.3) | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Capital expenditures | (5.8) | (13.7) | |||||
Net cash used in investing activities | (5.8) | (13.7) | |||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Net (decrease) increase in short-term borrowings and overdraft | (17.2) | 1.0 | |||||
Net borrowings under the Amended 2016 Revolving Credit Facility | 40.6 | 83.8 | |||||
Repayments under the 2016 Term Loan Facility | (4.5) | (4.5) | |||||
Payment of financing costs | (0.9) | 0.0 | |||||
Tax withholdings related to net share settlements of restricted stock units and awards | (1.6) | (2.9) | |||||
Other financing activities | (0.2) | (0.2) | |||||
Net cash provided by financing activities | 16.2 | 77.2 | |||||
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 0.3 | 2.9 | |||||
Net decrease in cash, cash equivalents and restricted cash | (17.7) | (30.9) | |||||
Cash, cash equivalents and restricted cash at beginning of period | [1] | 87.5 | 87.4 | ||||
Cash, cash equivalents and restricted cash at end of period | [1] | 69.8 | 56.5 | ||||
Cash paid during the period for: | |||||||
Interest | [2] | 61.3 | 53.6 | ||||
Income taxes, net of refunds | [2] | $ 0.4 | $ 2.6 | ||||
|
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS (Parenthetical) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Statement of Cash Flows [Abstract] | ||
Restricted cash | $ 1.5 | $ 0.8 |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES |
3 Months Ended |
---|---|
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Revlon, Inc. ("Revlon" and together with its subsidiaries, the "Company") conducts its business exclusively through its direct wholly-owned operating subsidiary, Revlon Consumer Products Corporation ("Products Corporation") and its subsidiaries. Revlon is an indirect majority-owned subsidiary of MacAndrews & Forbes Incorporated (together with certain of its affiliates other than the Company, "MacAndrews & Forbes"), a corporation beneficially owned by Ronald O. Perelman. Mr. Perelman is Chairman of Revlon's and Products Corporation's Board of Directors. The Company is a leading global beauty company with an iconic portfolio of brands that develops, manufactures, markets, distributes and sells an extensive array of color cosmetics; hair color, hair care and hair treatments; fragrances; skin care; beauty tools; men’s grooming products; anti-perspirant deodorants; and other beauty care products across a variety of distribution channels. The Company operates in four reporting segments: Revlon; Elizabeth Arden; Portfolio; and Fragrances. The accompanying Consolidated Financial Statements are unaudited. In management's opinion, all adjustments necessary for a fair presentation of the Company's financial information have been made. The Unaudited Consolidated Financial Statements include the Company's accounts after the elimination of all material intercompany balances and transactions. The preparation of the Company's Unaudited Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Unaudited Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Unaudited Consolidated Financial Statements include, but are not limited to: allowances for doubtful accounts; inventory valuation reserves; expected sales returns and allowances; trade support costs; certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of goodwill, intangible and long-lived assets; income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities; restructuring costs; and certain estimates and assumptions used in the calculation of the net periodic benefit (income) costs and the projected benefit obligations for the Company’s pension and other post-retirement plans, including the expected long-term return on pension plan assets and the discount rate used to value the Company’s pension benefit obligations. The Unaudited Consolidated Financial Statements should be read in conjunction with the audited consolidated financial statements and related notes contained in Revlon's Annual Report on Form 10-K for the fiscal year ended December 31, 2018 (the "2018 Form 10-K"). The Company's results of operations and financial position for interim periods are not necessarily indicative of those to be expected for the full year. Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02" or "ASC 842"), which requires lessees to recognize a right-of-use asset and a related lease liability on the balance sheet for all leases, with the exception of short-term leases. The lease liability will be equal to the present value of lease payments and the right-of-use asset will be based on the lease liability, subject to certain adjustments, such as initial direct costs. Leases will continue to be classified as either operating or finance leases in the income statement. This guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company adopted ASU No. 2016-02 beginning as of January 1, 2019, using a modified retrospective approach and applying the standard’s transition provisions at the effective date of January 1, 2019. In addition, the Company elected to apply the package of practical expedients identified under Topic 842. See Note 5, "Leases," for additional disclosures provided as a result of this ASU. In February 2018, the FASB issued ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive income," which gives entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act of 2017 (the "Tax Act") to retained earnings. The guidance was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Entities are required to make additional disclosures, regardless of whether they elect to reclassify stranded amounts of tax effects. The Company has elected not to adopt this amendment and will include required financial statement disclosures, as applicable. No impact is expected to the Company’s results of operations and/or financial condition. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which was subsequently amended in November 2018 through ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses." ASU No. 2016-13 will require entities to estimate lifetime expected credit losses for trade and other receivables, net investments in leases, financing receivables, debt securities and other instruments, which will result in earlier recognition of credit losses. Further, the new credit loss model will affect how entities in all industries estimate their allowance for losses for receivables that are current with respect to their payment terms. ASU No. 2018-19 further clarifies that receivables arising from operating leases are not within the scope of Subtopic 326. Instead, impairment from receivables of operating leases should be accounted for in accordance with Topic 842, Leases. The new guidance on credit losses is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company expects to adopt ASU No. 2016-03, and the related ASU No. 2018-19 amendments, beginning as of January 1, 2020 and is in the process of assessing the impact that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. In August 2018, the FASB issued ASU No. 2018-15, "Internal Use Software (Subtopic 350-40) - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract," which requires a customer in a cloud computing hosting arrangement that is a service contract to follow the existing guidance in ASC 350-40 on internal-use software to determine which implementation costs are to be deferred and recognized as an asset and which costs are to be expensed as incurred. The new guidance: (i) specifies the financial statement presentation of capitalized implementation costs and the related amortization; (ii) will require entities to disclose the nature of hosting arrangements that are service contracts and the amount of implementation costs capitalized, amortized and impaired in each reporting period; and (iii) provides disclosures about significant judgments made when applying the guidance. Implementation costs that are recognized as an asset under the new guidance would be expensed over the term of the hosting arrangement. The term of the hosting arrangement would be the non-cancellable period of the arrangement and certain periods covered by options to renew the arrangement. The Company currently presents the cost of acquired software as a component of property, plant and equipment in its consolidated financial statements. This guidance is effective for annual periods beginning after December 15, 2019, with early adoption permitted. The Company will adopt ASU No. 2018-15 beginning as of January 1, 2020 and is in the process of assessing the impact, if any, that ASU No. 2018-15 is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
RESTRUCTURING CHARGES | RESTRUCTURING CHARGES 2018 Optimization Restructuring Program On November 9, 2018, the Company announced that it was implementing the 2018 Optimization Restructuring Program (the "2018 Optimization Program") designed to streamline the Company’s operations, reporting structures and business processes, with the objective of maximizing productivity and improving profitability, cash flows and liquidity. In connection with implementing the 2018 Optimization Program, the Company expects to recognize approximately $30 million to $40 million of total pre-tax restructuring and related charges, consisting of employee-related costs, such as severance, pension and other termination costs, as well as other related charges. The Company also expects to incur approximately $10 million of additional capital expenditures. The Company expects the 2018 Optimization Program to be substantially completed by December 31, 2019. A summary of the 2018 Optimization Restructuring Charges incurred through March 31, 2019 is presented in the following table:
(a) Other related charges are recorded within SG&A in the Company’s Consolidated Statement of Operations and Comprehensive Loss. A summary of the 2018 Optimization Restructuring Charges incurred through March 31, 2019 by reportable segment is presented in the following table:
The Company expects that approximately 85% of the restructuring charges will be paid in cash, of which approximately $3.8 million were paid through March 31, 2019, with $22 million to $30 million expected to be paid in 2019, with any remaining balance to be paid in 2020. EA Integration Restructuring Program In December 2016, in connection with integrating the Elizabeth Arden and Revlon organizations, the Company began the process of implementing certain integration activities, including consolidating offices, eliminating certain duplicative activities and streamlining back-office support (the "EA Integration Restructuring Program"). The EA Integration Restructuring Program is designed to reduce the Company’s cost of goods sold and SG&A expenses. The EA Integration Restructuring Program was substantially completed by December 31, 2018 and the Company expects to incur limited further charges under this program, primarily related to its exit from certain leased spaces. In connection with implementing the EA Integration Restructuring Program, the Company recognized $82.2 million of total pre-tax restructuring charges (the "EA Integration Restructuring Charges"), consisting of: (i) $72.2 million of employee-related costs, including severance, retention and other contractual termination benefits; (ii) $5.1 million of lease termination costs; and (iii) $4.9 million of other related charges. The Company expects that cash payments will total $80 million to $85 million in connection with the EA Integration Restructuring Charges, of which $67.0 million were paid through March 31, 2019. The remaining balance is expected to be substantially paid by the end of 2020. No charges were incurred during the three months ended March 31, 2019 in relation to the EA Integration Restructuring Program. A summary of the EA Integration Restructuring Charges incurred through March 31, 2019 is presented in the following table:
(a) Lease termination liabilities related to certain exited office space were adjusted following the implementation of ASC 842. See Note 5, "Leases," for additional information. (b) Inventory adjustments are recorded within cost of sales in the Company’s Consolidated Statement of Operations and Comprehensive Loss. (c) Other related charges are recorded within SG&A in the Company’s Consolidated Statement of Operations and Comprehensive Loss. A summary of the EA Integration Restructuring Charges incurred through March 31, 2019 by reportable segment is presented in the following table:
Restructuring Reserve The liability balance and related activity for each of the Company's restructuring programs are presented in the following table:
(a) Includes approximately $6.6 million related to other restructuring-related charges that were reflected within SG&A in the Company’s March 31, 2019 Consolidated Statement of Operations and Comprehensive Loss. (b) Other includes approximately $3.5 million of lease termination liabilities related to certain exited office space that were adjusted following the implementation of ASC 842. See Note 5, "Leases," for additional information. (c) Consists primarily of other immaterial restructuring initiatives in Denmark, Norway and Sweden. As of March 31, 2019 and 2018, all of the restructuring reserve balances were included within accrued expenses and other current liabilities in the Company's Consolidated Balance Sheets. |
DISCONTINUED OPERATIONS |
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DISCONTINUED OPERATIONS | DISCONTINUED OPERATIONS In December 2013, the Company announced restructuring actions that primarily included exiting its direct manufacturing, warehousing and sales business operations in mainland China within the Revlon segment (the "December 2013 Program"). The December 2013 Program resulted in the elimination of approximately 1,100 positions in 2014, primarily in China. With the implementation of the December 2013 Program, the results of the China discontinued operations, which relate entirely to the Revlon segment, are included within income from discontinued operations, net of taxes. The summary comparative financial results of discontinued operations were as follows for the periods presented:
As of March 31, 2019 and December 31, 2018, assets and liabilities of the China discontinued operations included in the Consolidated Balance Sheets consisted of the following:
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INVENTORIES |
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INVENTORIES | INVENTORIES As of March 31, 2019 and December 31, 2018, the Company's inventory balances consisted of the following:
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LEASES LEASES |
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LEASES | LEASES Products Corporation leases facilities for executive offices, warehousing, research and development and sales operations and leases various types of equipment under operating and finance lease agreements. The majority of Products Corporation’s real estate leases are located in the U.S. As disclosed in Note 1, in February 2016, the FASB issued ASU No. 2016-02, which requires that a lessee recognize, for both finance leases and operating leases, a liability to make lease payments (the lease liability) and a right-of-use (“ROU”) asset representing its right to use the underlying leased asset for the lease term. The lease liability is equal to the present value of the lease payments and the ROU asset is based on the lease liability, subject to certain adjustments, such as pre-payments, initial direct costs, lease incentives and accrued rent. The Company adopted ASU No. 2016-02 beginning as of January 1, 2019, using a modified retrospective approach and applying the standard’s transition provisions at the effective date of January 1, 2019. The comparative information has not been restated and continues to be reported under the lease accounting standard in effect for those periods. The standard had a material impact on the Company’s unaudited consolidated balance sheets but did not have an impact on the Company’s unaudited statements of operations and comprehensive loss and cash flows. As of January 1, 2019, the Company's adoption of ASU No. 2016-02 resulted in:
Upon adoption of ASU No. 2016-02, the Company elected the available practical expedients allowed by the guidance under:
The Company determines if an arrangement is a lease at inception, considering whether the contract conveys a right to control the use of the identified asset for a period of time in exchange for consideration. Operating leases are included in operating lease ROU assets, recorded within “Property, Plant and Equipment”, and operating lease liabilities, recorded within either "Accrued expenses and other current liabilities" and/or "Other long-term liabilities" in the Company’s unaudited consolidated balance sheets. Finance leases are included in finance lease ROU assets recorded within “Property, Plant and Equipment”, and finance lease liabilities, recorded within either "Accrued expenses and other current liabilities" and/or "Other long-term liabilities" in the Company’s unaudited consolidated balance sheets. As most of the Company’s leases do not provide the lease implicit rates, the Company uses its incremental borrowing rates as the discount rate, adjusted as applicable, based on the information available at the lease commencement dates to determine the present value of lease payments. The Company may use the lease implicit rate, when readily determinable, as the discount rate to determine the present value of lease payments. As of January 1, 2019, the Company used an average discount rate of approximately 16%, based on an estimate of the Company's incremental borrowing rates. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the applicable lease term. At lease commencement, for initial measurement, variable lease payments that do not depend on an index or rate, if any, are excluded from lease payments. Subsequent to initial measurement, these variable payments are recognized when the event determining the amount of the variable consideration to be paid occurs. Leases with an initial lease term of 12 months or less are not included in the lease liability or ROU asset. The following table includes disclosure related to the new lease standard:
Maturities of lease liabilities as of March 31, 2019 were as follows:
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LEASES | LEASES Products Corporation leases facilities for executive offices, warehousing, research and development and sales operations and leases various types of equipment under operating and finance lease agreements. The majority of Products Corporation’s real estate leases are located in the U.S. As disclosed in Note 1, in February 2016, the FASB issued ASU No. 2016-02, which requires that a lessee recognize, for both finance leases and operating leases, a liability to make lease payments (the lease liability) and a right-of-use (“ROU”) asset representing its right to use the underlying leased asset for the lease term. The lease liability is equal to the present value of the lease payments and the ROU asset is based on the lease liability, subject to certain adjustments, such as pre-payments, initial direct costs, lease incentives and accrued rent. The Company adopted ASU No. 2016-02 beginning as of January 1, 2019, using a modified retrospective approach and applying the standard’s transition provisions at the effective date of January 1, 2019. The comparative information has not been restated and continues to be reported under the lease accounting standard in effect for those periods. The standard had a material impact on the Company’s unaudited consolidated balance sheets but did not have an impact on the Company’s unaudited statements of operations and comprehensive loss and cash flows. As of January 1, 2019, the Company's adoption of ASU No. 2016-02 resulted in:
Upon adoption of ASU No. 2016-02, the Company elected the available practical expedients allowed by the guidance under:
The Company determines if an arrangement is a lease at inception, considering whether the contract conveys a right to control the use of the identified asset for a period of time in exchange for consideration. Operating leases are included in operating lease ROU assets, recorded within “Property, Plant and Equipment”, and operating lease liabilities, recorded within either "Accrued expenses and other current liabilities" and/or "Other long-term liabilities" in the Company’s unaudited consolidated balance sheets. Finance leases are included in finance lease ROU assets recorded within “Property, Plant and Equipment”, and finance lease liabilities, recorded within either "Accrued expenses and other current liabilities" and/or "Other long-term liabilities" in the Company’s unaudited consolidated balance sheets. As most of the Company’s leases do not provide the lease implicit rates, the Company uses its incremental borrowing rates as the discount rate, adjusted as applicable, based on the information available at the lease commencement dates to determine the present value of lease payments. The Company may use the lease implicit rate, when readily determinable, as the discount rate to determine the present value of lease payments. As of January 1, 2019, the Company used an average discount rate of approximately 16%, based on an estimate of the Company's incremental borrowing rates. Lease terms may include options to extend or terminate the lease when it is reasonably certain that the Company will exercise that option. Lease expense for operating lease payments is recognized on a straight-line basis over the applicable lease term. At lease commencement, for initial measurement, variable lease payments that do not depend on an index or rate, if any, are excluded from lease payments. Subsequent to initial measurement, these variable payments are recognized when the event determining the amount of the variable consideration to be paid occurs. Leases with an initial lease term of 12 months or less are not included in the lease liability or ROU asset. The following table includes disclosure related to the new lease standard:
Maturities of lease liabilities as of March 31, 2019 were as follows:
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GOODWILL AND INTANGIBLE ASSETS, NET |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS, NET | GOODWILL AND INTANGIBLE ASSETS, NET Goodwill The following table presents the changes in goodwill by segment during the three months ended March 31, 2019:
(a) Amount refers to cumulative goodwill impairment charges related to impairments recognized in 2015, 2017 and 2018; no impairment charges were recognized during the three months ended March 31, 2019. Intangible Assets, Net The following tables present details of the Company's total intangible assets as of March 31, 2019 and December 31, 2018:
Amortization expense for finite-lived intangible assets was $14.8 million and $10.0 million for the three months ended March 31, 2019 and 2018, respectively, with the increase primarily attributable to the accelerated amortization of the Pure Ice intangible assets as a result of the revision of the brand’s intangible assets useful lives following the termination of a business relationship with its principal customer in 2018. The following table reflects the estimated future amortization expense for each period presented, a portion of which is subject to exchange rate fluctuations, for the Company's finite-lived intangible assets as of March 31, 2019:
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ACCRUED EXPENSES AND OTHER |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES AND OTHER | ACCRUED EXPENSES AND OTHER As of March 31, 2019 and December 31, 2018, the Company's accrued expenses and other current liabilities consisted of the following:
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LONG-TERM DEBT |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT | LONG-TERM DEBT As of March 31, 2019 and December 31, 2018, the Company's debt balances consisted of the following:
(*) At March 31, 2019, the Company classified $389.7 million as its current portion of long-term debt, comprised primarily of $371.6 million of net borrowings under the Amended 2016 Revolving Credit Facility, net of debt issuance costs, and $18 million of amortization payments on the 2016 Term Loan Facility scheduled to be paid over the next four calendar quarters. At December 31, 2018, the Company classified $348.1 million as its current portion of long-term debt, comprised primarily of $330 million of net borrowings under the Amended 2016 Revolving Credit Facility, net of debt issuance costs, and $18 million of amortization payments on the 2016 Term Loan Facility. (a) See Note 10, "Long-Term Debt," to the Consolidated Financial Statements in Revlon's 2018 Form 10-K for certain details regarding the euro-denominated senior secured asset-based term loan facility in an aggregate principal amount of €77 million that various foreign subsidiaries of Products Corporation entered into in July 2018 (the “2018 Foreign Asset-Based Term Facility”). (b) See Note 10, "Long-Term Debt," to the Consolidated Financial Statements in Revlon's 2018 Form 10-K for certain details regarding Products Corporation's Amended 2016 Revolving Credit Facility. In April 2018, Products Corporation amended the Amended 2016 Revolving Credit Facility agreement, as detailed below, to, among other things, add a new $41.5 million senior secured first in, last out "Tranche B," while the original $400 million tranche under such facility became a senior secured last in, first out "Tranche A." Tranche A matures on the earlier of: (x) September 7, 2021; and (y) the 91st day prior to the maturity of Products Corporation’s 5.75% Senior Notes if, on that date (and solely for so long as), (i) any of Products Corporation’s 5.75% Senior Notes remain outstanding and (ii) Products Corporation’s available liquidity does not exceed the aggregate principal amount of the then outstanding 5.75% Senior Notes by at least $200 million. Tranche B matures on April 17, 2020. Total borrowings at face amount under Tranche A and Tranche B under the Amended 2016 Revolving Credit Facility at March 31, 2019 were $338.2 million (excluding $10.9 million of outstanding undrawn letters of credit) and $37.5 million, respectively (the 2016 Term Loan Facility and the Amended 2016 Revolving Credit Facility are collectively referred to as the "2016 Senior Credit Facilities"). (c) See Note 10, "Long-Term Debt," to the Consolidated Financial Statements in Revlon's 2018 Form 10-K for certain details regarding Products Corporation's 2016 Term Loan that matures on the earlier of: (x) September 7, 2023; and (y) the 91st day prior to the maturity of Products Corporation’s 5.75% Senior Notes due 2021 if, on that date (and solely for so long as), (i) any of Products Corporation's 5.75% Senior Notes remain outstanding and (ii) Products Corporation’s available liquidity does not exceed the aggregate principal amount of the then outstanding 5.75% Senior Notes by at least $200 million. The aggregate principal amount outstanding under the 2016 Term Loan Facility at March 31, 2019 was $1,755 million. (d) See Note 10, "Long-Term Debt," to the Consolidated Financial Statements in Revlon's 2018 Form 10-K for certain details regarding Products Corporation's 5.75% Senior Notes that mature on February 15, 2021. The aggregate principal amount outstanding under the 5.75% Senior Notes at March 31, 2019 was $500 million. (e) See Note 10, "Long-Term Debt," to the Consolidated Financial Statements in Revlon's 2018 Form 10-K for certain details regarding Products Corporation's 6.25% Senior Notes that mature on August 1, 2024. The aggregate principal amount outstanding under the 6.25% Senior Notes at March 31, 2019 was $450 million. Current Year Debt Transactions March 2019 Amendment to 2016 Revolving Credit Facility On March 6, 2019, Products Corporation, Revlon and certain of their subsidiaries entered into Amendment No. 2 (“Amendment No. 2”) to the 2016 Revolving Credit Agreement (as amended by Amendment No. 2, the “Amended 2016 Revolving Credit Agreement”) in respect of the 2016 Revolving Credit Facility (as in effect after Amendment No. 2, the “Amended 2016 Revolving Credit Facility”). Pursuant to the terms of Amendment No. 2, the maturity date applicable to the $41.5 million senior secured first in, last out Tranche B of the Amended 2016 Revolving Credit Facility was extended from April 17, 2019 to April 17, 2020. Prior to Amendment No. 2, the Amended 2016 Revolving Credit Agreement provided that the “Liquidity Amount” (defined in the Amended 2016 Revolving Credit Agreement as the sum of each borrowing base less the sum of (x) the aggregate outstanding extensions of credit under the Amended 2016 Revolving Credit Facility, and (y) any availability reserve in effect on such date) may exceed the aggregate commitments under the Amended 2016 Revolving Credit Facility by up to 5%. Amendment No. 2 limited the Liquidity Amount to no more than the aggregate commitments under the Amended 2016 Revolving Credit Facility. Prior to Amendment No. 2, under the Amended 2016 Revolving Credit Agreement, a “Liquidity Event Period” generally occurs if Products Corporation’s Liquidity Amount fell below the greater of $35 million and 10% of the maximum availability under the Amended 2016 Revolving Credit Facility. Amendment No. 2 changed these thresholds to $50 million and 15%, respectively, only for purposes of triggering certain notification obligations of Products Corporation, increased borrowing base reporting frequency and the ability of the administrative agent to apply amounts collected in controlled accounts for the repayment of loans under the Amended 2016 Revolving Credit Facility. After entering into Amendment No. 2, on March 7, 2019 Products Corporation’s availability under the Amended 2016 Revolving Credit Facility was $37.3 million, which was less than the greater of $35 million and 10% of the maximum availability under the Amended 2016 Revolving Credit Facility, which at such date equated to $41.3 million. Accordingly, effective beginning in March 2019 Products Corporation is required to maintain a consolidated fixed charge coverage ratio ("FCCR") of a minimum of 1.0 to 1.0 (which it currently satisfies), the administrative agent may apply amounts collected in controlled accounts for the repayment of loans under the Amended 2016 Revolving Credit Facility, which the administrative agent began applying in March 2019, and Products Corporation is required to provide the administrative agent with weekly borrowing base certificates, in each case until such time that Products Corporation’s availability under the Amended 2016 Revolving Credit Facility is equal to or exceeds the greater of $35 million and 10% of the maximum availability under the Amended 2016 Revolving Credit Facility for at least 20 consecutive business days. Amendment No. 2 also adjusts, among other things, the “payment conditions” required to make unlimited restricted payments. Covenants Products Corporation was in compliance with all applicable covenants under the 2016 Senior Credit Facilities as of March 31, 2019. At March 31, 2019, the aggregate principal amounts outstanding and availability under Products Corporation’s various revolving credit facilities were as follows:
(a) Availability as of March 31, 2019 is based upon the borrowing base then in effect of $428.4 million, less $10.9 million of outstanding undrawn letters of credit and $375.7 million then drawn. As Products Corporation’s consolidated fixed charge coverage ratio was greater than 1.0 to 1.0 as of March 31, 2019, all of the $41.8 million of availability under the Amended 2016 Revolving Credit Facility was available as of such date. The Company’s foreign subsidiaries held $63.2 million out of the Company's total $68.3 million in cash and cash equivalents as of March 31, 2019. While the cash held by the Company’s foreign subsidiaries is primarily used to fund their operations, the Company regularly assesses its global cash needs and the available sources of cash to fund these needs, which regularly includes repatriating foreign-held cash to settle historical intercompany loans and other intercompany payables. The Company believes that it continues to have sufficient liquidity to meet its cash needs for at least the next 12 months based upon the cash generated by its operations, cash on hand, availability under the Amended 2016 Revolving Credit Facility and other permitted lines of credit, along with the option to further settle historical intercompany loans and payables with certain foreign subsidiaries. The Company also expects to generate additional liquidity from cost reductions resulting from the implementation of the 2018 Optimization Program, which was initiated during the fourth quarter of 2018, and cost reductions generated from other cost control initiatives. |
FAIR VALUE MEASUREMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Assets and liabilities are required to be categorized into three levels of fair value based upon the assumptions used to value the assets or liabilities. Level 1 provides the most reliable measure of fair value, whereas Level 3, if applicable, generally would require significant management judgment. The three levels for categorizing the fair value measurement of assets and liabilities are as follows:
As of March 31, 2019 and December 31, 2018, the Company did not have any financial assets and liabilities that were required to be measured at fair value. As of March 31, 2019, the fair value and carrying value of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below:
As of December 31, 2018, the fair value and carrying value of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below:
(a) The fair value of the Company's long-term debt, including the current portion of long-term debt, is based on quoted market prices for similar issuances and maturities. The carrying amounts of the Company's cash and cash equivalents, trade receivables, notes receivable, accounts payable and short-term borrowings approximate their respective fair values. |
FINANCIAL INSTRUMENTS |
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS Letters of Credit Products Corporation maintains standby and trade letters of credit for various corporate purposes under which Products Corporation is obligated, of which $10.9 million and $10.1 million (including amounts available under credit agreements in effect at that time) were maintained as of both March 31, 2019 and December 31, 2018, respectively. Included in these amounts are approximately $7.8 million and $7.3 million in standby letters of credit that support Products Corporation’s self-insurance programs, in each case as outstanding as of March 31, 2019 and December 31, 2018, respectively. The estimated liability under such programs is accrued by Products Corporation. Derivative Financial Instruments The Company may, from time to time, use derivative financial instruments, primarily FX Contracts, to manage foreign currency exchange risk by reducing the effects of fluctuations in foreign currency exchange rates on the Company’s net cash flows. The Company does not hold or issue financial instruments for speculative or trading purposes. Foreign Currency Forward Exchange Contracts The FX Contracts may, from time to time, be entered into primarily to hedge the anticipated net cash flows resulting from inventory purchases and intercompany payments denominated in currencies other than the local currencies of the Company’s foreign and domestic operations and generally have maturities of less than one year. The Company did not enter into any FX Contracts during the three months ended March 31, 2019. The U.S. Dollar notional amounts of the FX Contracts outstanding at each of March 31, 2019 and December 31, 2018 were nil. Interest Rate Swap Transaction In November 2013, Products Corporation executed a forward-starting floating-to-fixed interest rate swap transaction (the "2013 Interest Rate Swap") that, at its inception, was based on a notional amount of $400 million in respect of indebtedness under Products Corporation’s 2013 bank term loan that was incurred in connection with completing the October 2013 acquisition of The Colomer Group (the "Old Acquisition Term Loan" and the "Colomer Acquisition," respectively). The 2013 Interest Rate Swap, which initially had a floor of 1.00% that in December 2016 was amended to 0.75%, expired in May 2018. In connection with entering into the 2016 Term Loan Facility, the 2013 Interest Rate Swap was carried over to apply to a notional amount of $400 million in respect of indebtedness under such loan for the remaining balance of the term of such swap. The Company initially designated the 2013 Interest Rate Swap as a cash flow hedge of the variability of the forecasted 3-month LIBOR interest rate payments initially related to the $400 million notional amount under the Old Acquisition Term Loan over the 3-year term of the 2013 Interest Rate Swap (and subsequently to the $400 million notional amount under the 2016 Term Loan Facility). Under the terms of the 2013 Interest Rate Swap, Products Corporation received from the counterparty a floating interest rate based on the higher of the 3-month U.S. Dollar LIBOR or the floor percentage in effect, while paying a fixed interest rate payment to the counterparty equal to 2.0709% (which, with respect to the 2016 Term Loan Facility, effectively fixed the interest rate on such notional amount at 5.5709% through May 2018). As a result of completely refinancing the Old Acquisition Term Loan with a portion of the proceeds from Product's Corporation's consummation of the 2016 Senior Credit Facilities and the issuance of its 6.25% Senior Notes in connection with consummating the Elizabeth Arden Acquisition, the critical terms of the 2013 Interest Rate Swap no longer matched the terms of the underlying debt under the 2016 Term Loan Facility. At the refinancing date, which was the same as the September 7, 2016 Elizabeth Arden Acquisition Date (the "De-designation Date"), the 2013 Interest Rate Swap was determined to no longer be highly effective and the Company discontinued hedge accounting for the 2013 Interest Rate Swap. Following the de-designation of the 2013 Interest Rate Swap, changes in fair value of such swap were accounted for as a component of other non-operating expenses. Accumulated deferred losses of $6.3 million, or $3.9 million net of tax, at the De-designation Date, that were previously recorded as a component of accumulated other comprehensive loss, were fully amortized into earnings over the remaining term of the 2013 Interest Rate Swap, which expired in May 2018. See "Quantitative Information – Derivative Financial Instruments" below for additional information on the balance sheet balances related to this swap. Credit Risk Exposure to credit risk in the event of nonperformance by any of the counterparties to the Company's derivative instruments is limited to the gross fair value of these derivative instruments in asset positions, which was nil at each of March 31, 2019 and December 31, 2018. The Company attempts to minimize exposure to credit risk by generally entering into derivative contracts with counterparties that have investment-grade credit ratings and are major financial institutions. The Company also periodically monitors any changes in the credit ratings of its counterparties. Quantitative Information – Derivative Financial Instruments As of March 31, 2019 and December 31, 2018, the Company did not have any derivative financial instruments. The effects of the Company's derivative financial instruments on its Unaudited Consolidated Statements of Operations and Comprehensive Loss were as follows for the periods presented:
(a) Net of tax benefits of $0.2 million for the three months ended March 31, 2018. |
PENSION AND POST-RETIREMENT BENEFITS |
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Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
PENSION AND POST-RETIREMENT BENEFITS | PENSION AND POST-RETIREMENT BENEFITS Net Periodic Benefit Cost The components of net periodic benefit costs for the Company's pension and the other post-retirement benefit plans were as follows for the periods presented:
In the three months ended March 31, 2019, the Company recognized net periodic benefit cost of $2.0 million, compared to net periodic benefit cost of $0.6 million in the three months ended March 31, 2018, primarily due to lower expected return on plan assets and higher interest cost. Net periodic benefit costs are reflected in the Company's Unaudited Consolidated Financial Statements as follows for the periods presented:
The Company expects that it will have net periodic benefit cost of approximately $7.9 million for its pension and other post-retirement benefit plans for all of 2019, compared with net periodic benefit cost of $2.6 million in 2018. Contributions: The Company’s intent is to fund at least the minimum contributions required to meet applicable federal employee benefit laws and local laws, or to directly pay benefit payments where appropriate. During the first quarter of 2019, $1.6 million and $0.2 million were contributed to the Company’s pension plans and other post-retirement benefit plans, respectively. During 2019, the Company expects to contribute approximately $12 million in the aggregate to its pension and other post-retirement benefit plans. Relevant aspects of the qualified defined benefit pension plans, non-qualified pension plans and other post-retirement benefit plans sponsored by Products Corporation are disclosed in Note 13, "Pension and Post-Retirement Benefits," to the Consolidated Financial Statements in Revlon's 2018 Form 10-K. |
STOCK COMPENSATION PLAN |
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK COMPENSATION PLAN | STOCK COMPENSATION PLAN Revlon maintains the Fourth Amended and Restated Revlon, Inc. Stock Plan (the "Stock Plan"), which provides for awards of stock options, stock appreciation rights, restricted or unrestricted stock and restricted stock units ("RSUs") to eligible employees and directors of Revlon and its affiliates, including Products Corporation. An aggregate of 6,565,000 shares were reserved for issuance as Awards under the Stock Plan, of which there remained approximately 2.7 million shares available for grant as of March 31, 2019. In July 2014, the Stock Plan was amended to renew the Stock Plan for a 7-year renewal term expiring on April 14, 2021. Long-Term Incentive Program The Company's LTIP RSUs consist of time-based RSUs and performance-based RSUs. Time-based RSUs are scheduled to vest ratably over a 3-year service period, while performance-based RSUs are scheduled to vest based on the achievement of certain Company performance metrics and cliff-vest at the completion of a 3-year performance period. The fair value of the LTIP RSUs is determined based on the NYSE closing share price on the grant date. During the first quarter of 2019, the Company granted nil time-based and performance-based RSU awards under the Stock Plan (the "2019 LTIP RSUs"). During the three months ended March 31, 2019, the activity related to time-based and performance-based LTIP RSUs previously granted to eligible employees and the grant date fair value per share related to these LTIP RSUs were as follows:
Time-Based LTIP RSUs The Company recognized a net adjustment to compensation expense related to the time-based LTIP RSUs of $0.1 million for the three months ended March 31, 2019. As of March 31, 2019, the Company had $6.1 million of total deferred compensation expense related to non-vested, time-based LTIP RSUs. The cost is recognized over the vesting period of the awards, as described above. One tranche of time-based LTIP RSUs vested during the three months ended March 31, 2019. Performance-based LTIP RSUs The Company recognized a net adjustment to compensation expense related to the performance-based LTIP RSUs of $0.1 million for the three months ended March 31, 2019. As of March 31, 2019, the Company had $7.3 million of total deferred compensation expense related to non-vested, performance-based LTIP RSUs, which is recognized over the 3-year performance period of the performance-based 2018 LTIP RSUs and 2 years for the performance-based 2017 LTIP RSUs. No performance-based LTIP RSUs vested during the three months ended March 31, 2019. |
INCOME TAXES |
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Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||
INCOME TAXES | INCOME TAXES The Company's provision for income taxes represents federal, foreign, state and local income taxes. The Company's effective tax rate differs from the applicable federal statutory rate due to the effect of state and local income taxes, tax rates and income in foreign jurisdictions, foreign earnings taxable in the U.S., the limitation on the deductibility of interest, valuation allowances and other items. The Company’s tax provision changes quarterly based on various factors including, but not limited to, the geographical level and mix of earnings; enacted tax legislation; foreign, state and local income taxes; tax audit settlements and the interaction of various global tax strategies. The Company recorded a provision for income taxes of $0.1 million for the three months ended March 31, 2019 and a benefit from incomes taxes of $1.6 million for three months ended March 31, 2018, respectively. For the three months ended March 31, 2019, the Company concluded that the use of the discrete method was more appropriate than the annual effective tax rate method, because the annual effective tax rate method would not be reliable due to its sensitivity to minimal changes in forecasted annual pre-tax earnings. For the three months ended March 31, 2018, the tax rate at the end of the period was calculated using an estimate of the annual effective tax rate expected for the full fiscal year. The $1.7 million increase in the Company's provision for income taxes in the three months ended March 31, 2019, as compared to the three months ended March 31, 2018, was primarily due to: (i) the decreased loss from continuing operations before income taxes; (ii) the mix and level of earnings; (iii) valuation allowances recorded in the current quarter; (iv) the limitation on the deductibility of interest; and (v) the U.S. tax on the Company's foreign earnings. The Company's effective tax rate for the three months ended March 31, 2019 was lower than the federal statutory rate of 21%, primarily due to the valuation allowance related to limitation on the deductibility of interest and the U.S. tax on the Company's foreign earnings. The Company's effective tax rate for the three months ended March 31, 2018 was lower than the federal statutory rate of 21% as a result of nondeductible expenses for interest and executive compensation, as well as the U.S. taxation of the Company's foreign earnings under the GILTI provisions of the Tax Act, partially offset by the impact of reducing the Company's liability under APB 23. The Company expects that its tax provision and effective tax rate in any individual quarter and year-to-date period will vary and may not be indicative of the Company's tax provision and effective tax rate for the full year. As of the first quarter of 2019, the Company concluded that, based on its evaluation of objective verifiable evidence, it does not require a valuation allowance on its federal deferred tax assets, other than those associated with the limitation on the deductibility of interest. The Company does have a valuation allowance on deferred tax assets associated with its activity in certain U.S. states and foreign jurisdictions. These conclusions regarding the establishment of valuation allowances on the Company's deferred tax assets as of the first quarter of 2019 are consistent with the Company's conclusions on such matters as of the end of 2018. However, if the Company does not generate sufficient taxable income in future periods, its deferred tax assets may not be realizable on a more-likely-than-not basis, which would result in the Company having to establish an additional valuation allowance against its deferred tax assets. The Company will continue to assess all available evidence, both negative and positive, to determine whether such additional valuation allowance is warranted. For a further discussion, see Note 15, "Income Taxes," to the Consolidated Financial Statements in Revlon's 2018 Form 10-K and Item 1A. “Risk Factors-Uncertainties in the interpretation and application of the U.S. income tax provisions could have a material impact on the Company's financial condition, results of operations and/or cash flows” in Revlon's 2018 Form 10-K. |
ACCUMULATED OTHER COMPREHENSIVE LOSS |
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Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS A roll-forward of the Company's accumulated other comprehensive loss as of March 31, 2019 is as follows:
(a) Amounts represent the change in accumulated other comprehensive loss as a result of the amortization of actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 11, "Pension and Post-retirement Benefits," for further discussion of the Company’s pension and other post-retirement plans. For the three months ended March 31, 2019, the Company did not have any activity related to financial instruments. The following is a roll-forward of the amounts reclassified out of accumulated other comprehensive loss into earnings during the three months ended March 31, 2018 related to the 2013 Interest Rate Swap:
(a) Reclassified to interest expense. |
SEGMENT DATA AND RELATED INFORMATION |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT DATA AND RELATED INFORMATION | SEGMENT DATA AND RELATED INFORMATION Operating Segments 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 Unaudited 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 March 31, 2019, the Company’s operations are organized into the following reportable segments:
The Company's management evaluates segment profit for each of the Company's reportable segments. The Company allocates corporate expenses to each reportable segment to arrive at segment profit, and these expenses are included in the internal measure of segment operating performance. The Company defines segment profit 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. Segment profit also excludes the impact of certain items that are not directly attributable to the reportable segments' underlying operating performance. Such items are shown below in the table reconciling segment profit to consolidated income from continuing operations before income taxes. 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 Unaudited 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 Unaudited Consolidated Financial Statements. The following table is a comparative summary of the Company’s net sales and segment profit by reportable segment for the periods presented.
As of March 31, 2019, the Company had operations established in approximately 25 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. The following tables present the Company's segment net sales by geography and total net sales by classes of similar products for the periods presented:
* The EMEA region includes Europe, the Middle East, Africa and the Company's international Travel Retail business; the Latin America region includes Mexico; and the Pacific region includes Australia and New Zealand.
The following table presents the Company's long-lived assets by geographic area as of March 31, 2019 and December 31, 2018:
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BASIC AND DILUTED EARNINGS PER COMMON SHARE |
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BASIC AND DILUTED EARNINGS PER COMMON SHARE | BASIC AND DILUTED EARNINGS PER COMMON SHARE Shares used in basic loss per share are computed using the weighted-average number of common shares outstanding during each period. Shares used in diluted loss per share include the dilutive effect of unvested restricted stock, RSUs and LTIP RSUs under the Company’s Stock Plan using the treasury stock method. For the three months ended March 31, 2019, diluted loss per share equals basic loss per share, as the assumed vesting of restricted stock, RSUs and LTIP RSUs would have an anti-dilutive effect. As of March 31, 2019 and 2018, there were no outstanding stock options under the Company's Stock Plan. See Note 12, "Stock Compensation Plan," for information on the LTIP RSUs. Following are the components of basic and diluted loss per common share for the periods presented:
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CONTINGENCIES |
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Mar. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
CONTINGENCIES | CONTINGENCIES The Company is involved in various routine legal proceedings incidental to the ordinary course of its business. The Company believes that the outcome of all pending legal proceedings in the aggregate is not reasonably likely to have a material adverse effect on the Company’s business, prospects, results of operations, financial condition and/or cash flows. However, in light of the uncertainties involved in legal proceedings generally, the ultimate outcome of a particular matter could be material to the Company’s operating results for a particular period depending on, among other things, the size of the loss or the nature of the liability imposed and the level of the Company’s income for that particular period. |
RELATED PARTY TRANSACTIONS |
3 Months Ended |
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Mar. 31, 2019 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Reimbursement Agreements Revlon, Products Corporation and MacAndrews & Forbes have entered into reimbursement agreements (the "Reimbursement Agreements") pursuant to which: (i) MacAndrews & Forbes is obligated to provide (directly or through its affiliates) certain professional and administrative services, including, without limitation, employees, to the Company, and to purchase services from third-party providers, such as insurance, legal, accounting and air transportation services, on behalf of the Company, to the extent requested by Products Corporation; and (ii) Products Corporation is obligated to provide certain professional and administrative services, including, without limitation, employees, to MacAndrews & Forbes and to purchase services from third-party providers, such as insurance, legal and accounting services, on behalf of MacAndrews & Forbes, to the extent requested by MacAndrews & Forbes, provided that in each case the performance of such services does not cause an unreasonable burden to MacAndrews & Forbes or Products Corporation, as the case may be. The Company reimburses MacAndrews & Forbes for the allocable costs of the services that MacAndrews & Forbes purchases for or provides to the Company and for the reasonable out-of-pocket expenses that MacAndrews & Forbes incurs in connection with the provision of such services. MacAndrews & Forbes reimburses Products Corporation for the allocable costs of the services that Products Corporation purchases for or provides to MacAndrews & Forbes and for the reasonable out-of-pocket expenses incurred by Products Corporation in connection with the purchase or provision of such services. Each of the Company, on the one hand, and MacAndrews & Forbes, on the other, has agreed to indemnify the other party for losses arising out of the services provided by it under the Reimbursement Agreements, other than losses resulting from its willful misconduct or gross negligence. The Reimbursement Agreements may be terminated by either party on 90 days' notice. The Company does not intend to request services under the Reimbursement Agreements unless their costs would be at least as favorable to the Company as could be obtained from unaffiliated third parties. The Company participates in MacAndrews & Forbes' directors and officers liability insurance program (the "D&O Insurance Program"), as well as its other insurance coverages, such as property damage, business interruption, liability and other coverages, which cover the Company, as well as MacAndrews & Forbes and its subsidiaries. The limits of coverage for certain of the policies are available on an aggregate basis for losses to any or all of the participating companies and their respective directors and officers. The Company reimburses MacAndrews & Forbes from time-to-time for their allocable portion of the premiums for such coverage or the Company pays the insurers directly, which premiums the Company believes are more favorable than the premiums that the Company would pay were it to secure stand-alone coverage. Any amounts paid by the Company directly to MacAndrews & Forbes in respect of premiums are included in the amounts paid under the Reimbursement Agreements. The net activity related to services purchased under the Reimbursement Agreements during the three months ended March 31, 2019 and 2018 was nil and $0.1 million expense, respectively. The purchases during first quarter 2018 primarily included third party services purchased by MacAndrews & Forbes. As of March 31, 2019 and December 31, 2018, a balance of nil and a $0.3 million receivable from MacAndrews & Forbes, respectively, were included in the Company's Consolidated Balance Sheet for transactions subject to the Reimbursement Agreements. Other During the three months ended March 31, 2019 and 2018, the Company engaged several companies in which MacAndrews & Forbes had a controlling interest to provide the Company with various ordinary course business services. These services included processing approximately $2.4 million and $7.4 million of coupon redemptions for the Company's retail customers for the three months ended March 31, 2019 and 2018, respectively, for which the Company paid fees of approximately $0.1 million for each of the three months ended March 31, 2019 and 2018, and other similar advertising, coupon redemption and raw material supply services, for which the Company had net receivables and net payables aggregating to approximately $0.2 million and $0.1 million for the three months ended March 31, 2019 and 2018, respectively. The Company believes that its engagement of each of these affiliates was on arm's length terms, taking into account each firm's expertise in its respective field, and that the fees paid or received were at least as favorable as those available from unaffiliated parties. |
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) |
3 Months Ended |
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Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | The preparation of the Company's Unaudited Consolidated Financial Statements in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") requires management to make estimates and assumptions that affect amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the date of the financial statements and reported amounts of revenues and expenses during the periods presented. Actual results could differ from these estimates. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the Unaudited Consolidated Financial Statements in the period they are determined to be necessary. Significant estimates made in the accompanying Unaudited Consolidated Financial Statements include, but are not limited to: allowances for doubtful accounts; inventory valuation reserves; expected sales returns and allowances; trade support costs; certain assumptions related to the valuation of acquired intangible and long-lived assets and the recoverability of goodwill, intangible and long-lived assets; income taxes, including deferred tax valuation allowances and reserves for estimated tax liabilities; restructuring costs; and certain estimates and assumptions used in the calculation of the net periodic benefit (income) costs and the projected benefit obligations for the Company’s pension and other post-retirement plans, including the expected long-term return on pension plan assets and the discount rate used to value the Company’s pension benefit obligations. |
Recently Adopted and Recently Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements In February 2016, the FASB issued ASU No. 2016-02, "Leases (Topic 842)" ("ASU 2016-02" or "ASC 842"), which requires lessees to recognize a right-of-use asset and a related lease liability on the balance sheet for all leases, with the exception of short-term leases. The lease liability will be equal to the present value of lease payments and the right-of-use asset will be based on the lease liability, subject to certain adjustments, such as initial direct costs. Leases will continue to be classified as either operating or finance leases in the income statement. This guidance is effective for annual periods beginning after December 15, 2018, with early adoption permitted. The Company adopted ASU No. 2016-02 beginning as of January 1, 2019, using a modified retrospective approach and applying the standard’s transition provisions at the effective date of January 1, 2019. In addition, the Company elected to apply the package of practical expedients identified under Topic 842. See Note 5, "Leases," for additional disclosures provided as a result of this ASU. In February 2018, the FASB issued ASU No. 2018-02, "Income Statement - Reporting Comprehensive Income (Topic 220) - Reclassification of Certain Tax Effects from Accumulated Other Comprehensive income," which gives entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of the Tax Cuts and Jobs Act of 2017 (the "Tax Act") to retained earnings. The guidance was effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018. Entities are required to make additional disclosures, regardless of whether they elect to reclassify stranded amounts of tax effects. The Company has elected not to adopt this amendment and will include required financial statement disclosures, as applicable. No impact is expected to the Company’s results of operations and/or financial condition. Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments," which was subsequently amended in November 2018 through ASU No. 2018-19, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses." ASU No. 2016-13 will require entities to estimate lifetime expected credit losses for trade and other receivables, net investments in leases, financing receivables, debt securities and other instruments, which will result in earlier recognition of credit losses. Further, the new credit loss model will affect how entities in all industries estimate their allowance for losses for receivables that are current with respect to their payment terms. ASU No. 2018-19 further clarifies that receivables arising from operating leases are not within the scope of Subtopic 326. Instead, impairment from receivables of operating leases should be accounted for in accordance with Topic 842, Leases. The new guidance on credit losses is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company expects to adopt ASU No. 2016-03, and the related ASU No. 2018-19 amendments, beginning as of January 1, 2020 and is in the process of assessing the impact that this new guidance is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. In August 2018, the FASB issued ASU No. 2018-15, "Internal Use Software (Subtopic 350-40) - Customer's Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement that is a Service Contract," which requires a customer in a cloud computing hosting arrangement that is a service contract to follow the existing guidance in ASC 350-40 on internal-use software to determine which implementation costs are to be deferred and recognized as an asset and which costs are to be expensed as incurred. The new guidance: (i) specifies the financial statement presentation of capitalized implementation costs and the related amortization; (ii) will require entities to disclose the nature of hosting arrangements that are service contracts and the amount of implementation costs capitalized, amortized and impaired in each reporting period; and (iii) provides disclosures about significant judgments made when applying the guidance. Implementation costs that are recognized as an asset under the new guidance would be expensed over the term of the hosting arrangement. The term of the hosting arrangement would be the non-cancellable period of the arrangement and certain periods covered by options to renew the arrangement. The Company currently presents the cost of acquired software as a component of property, plant and equipment in its consolidated financial statements. This guidance is effective for annual periods beginning after December 15, 2019, with early adoption permitted. The Company will adopt ASU No. 2018-15 beginning as of January 1, 2020 and is in the process of assessing the impact, if any, that ASU No. 2018-15 is expected to have on the Company’s results of operations, financial condition and/or financial statement disclosures. |
RESTRUCTURING CHARGES (Tables) |
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Restructuring and Related Activities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Restructuring and Related Charges | A summary of the EA Integration Restructuring Charges incurred through March 31, 2019 is presented in the following table:
(a) Lease termination liabilities related to certain exited office space were adjusted following the implementation of ASC 842. See Note 5, "Leases," for additional information. (b) Inventory adjustments are recorded within cost of sales in the Company’s Consolidated Statement of Operations and Comprehensive Loss. (c) Other related charges are recorded within SG&A in the Company’s Consolidated Statement of Operations and Comprehensive Loss. A summary of the EA Integration Restructuring Charges incurred through March 31, 2019 by reportable segment is presented in the following table:
A summary of the 2018 Optimization Restructuring Charges incurred through March 31, 2019 is presented in the following table:
(a) Other related charges are recorded within SG&A in the Company’s Consolidated Statement of Operations and Comprehensive Loss. A summary of the 2018 Optimization Restructuring Charges incurred through March 31, 2019 by reportable segment is presented in the following table:
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Schedule of Liability Balance and Activity of Restructuring Programs | The liability balance and related activity for each of the Company's restructuring programs are presented in the following table:
(a) Includes approximately $6.6 million related to other restructuring-related charges that were reflected within SG&A in the Company’s March 31, 2019 Consolidated Statement of Operations and Comprehensive Loss. (b) Other includes approximately $3.5 million of lease termination liabilities related to certain exited office space that were adjusted following the implementation of ASC 842. See Note 5, "Leases," for additional information. (c) Consists primarily of other immaterial restructuring initiatives in Denmark, Norway and Sweden. |
DISCONTINUED OPERATIONS (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Discontinued Operations | The summary comparative financial results of discontinued operations were as follows for the periods presented:
As of March 31, 2019 and December 31, 2018, assets and liabilities of the China discontinued operations included in the Consolidated Balance Sheets consisted of the following:
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INVENTORIES (Tables) |
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Components of Inventories | As of March 31, 2019 and December 31, 2018, the Company's inventory balances consisted of the following:
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LEASES (Tables) |
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Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disclosure of Leases | The following table includes disclosure related to the new lease standard:
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Finance Lease Maturities | Maturities of lease liabilities as of March 31, 2019 were as follows:
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Operating Lease Maturities | Maturities of lease liabilities as of March 31, 2019 were as follows:
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GOODWILL AND INTANGIBLE ASSETS, NET (Tables) |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Changes in Goodwill by Segment | following table presents the changes in goodwill by segment during the three months ended March 31, 2019:
(a) Amount refers to cumulative goodwill impairment charges related to impairments recognized in 2015, 2017 and 2018 |
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Summary of Finite-Lived Intangible Assets | The following tables present details of the Company's total intangible assets as of March 31, 2019 and December 31, 2018:
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Summary of Indefinite-Lived Intangible Assets | The following tables present details of the Company's total intangible assets as of March 31, 2019 and December 31, 2018:
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Estimated Future Amortization Expense | The following table reflects the estimated future amortization expense for each period presented, a portion of which is subject to exchange rate fluctuations, for the Company's finite-lived intangible assets as of March 31, 2019:
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ACCRUED EXPENSES AND OTHER (Tables) |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accrued Expenses and Other | As of March 31, 2019 and December 31, 2018, the Company's accrued expenses and other current liabilities consisted of the following:
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LONG-TERM DEBT (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Long-Term Debt | As of March 31, 2019 and December 31, 2018, the Company's debt balances consisted of the following:
(*) At March 31, 2019, the Company classified $389.7 million as its current portion of long-term debt, comprised primarily of $371.6 million of net borrowings under the Amended 2016 Revolving Credit Facility, net of debt issuance costs, and $18 million of amortization payments on the 2016 Term Loan Facility scheduled to be paid over the next four calendar quarters. At December 31, 2018, the Company classified $348.1 million as its current portion of long-term debt, comprised primarily of $330 million of net borrowings under the Amended 2016 Revolving Credit Facility, net of debt issuance costs, and $18 million of amortization payments on the 2016 Term Loan Facility. (a) See Note 10, "Long-Term Debt," to the Consolidated Financial Statements in Revlon's 2018 Form 10-K for certain details regarding the euro-denominated senior secured asset-based term loan facility in an aggregate principal amount of €77 million that various foreign subsidiaries of Products Corporation entered into in July 2018 (the “2018 Foreign Asset-Based Term Facility”). (b) See Note 10, "Long-Term Debt," to the Consolidated Financial Statements in Revlon's 2018 Form 10-K for certain details regarding Products Corporation's Amended 2016 Revolving Credit Facility. In April 2018, Products Corporation amended the Amended 2016 Revolving Credit Facility agreement, as detailed below, to, among other things, add a new $41.5 million senior secured first in, last out "Tranche B," while the original $400 million tranche under such facility became a senior secured last in, first out "Tranche A." Tranche A matures on the earlier of: (x) September 7, 2021; and (y) the 91st day prior to the maturity of Products Corporation’s 5.75% Senior Notes if, on that date (and solely for so long as), (i) any of Products Corporation’s 5.75% Senior Notes remain outstanding and (ii) Products Corporation’s available liquidity does not exceed the aggregate principal amount of the then outstanding 5.75% Senior Notes by at least $200 million. Tranche B matures on April 17, 2020. Total borrowings at face amount under Tranche A and Tranche B under the Amended 2016 Revolving Credit Facility at March 31, 2019 were $338.2 million (excluding $10.9 million of outstanding undrawn letters of credit) and $37.5 million, respectively (the 2016 Term Loan Facility and the Amended 2016 Revolving Credit Facility are collectively referred to as the "2016 Senior Credit Facilities"). (c) See Note 10, "Long-Term Debt," to the Consolidated Financial Statements in Revlon's 2018 Form 10-K for certain details regarding Products Corporation's 2016 Term Loan that matures on the earlier of: (x) September 7, 2023; and (y) the 91st day prior to the maturity of Products Corporation’s 5.75% Senior Notes due 2021 if, on that date (and solely for so long as), (i) any of Products Corporation's 5.75% Senior Notes remain outstanding and (ii) Products Corporation’s available liquidity does not exceed the aggregate principal amount of the then outstanding 5.75% Senior Notes by at least $200 million. The aggregate principal amount outstanding under the 2016 Term Loan Facility at March 31, 2019 was $1,755 million. (d) See Note 10, "Long-Term Debt," to the Consolidated Financial Statements in Revlon's 2018 Form 10-K for certain details regarding Products Corporation's 5.75% Senior Notes that mature on February 15, 2021. The aggregate principal amount outstanding under the 5.75% Senior Notes at March 31, 2019 was $500 million. (e) See Note 10, "Long-Term Debt," to the Consolidated Financial Statements in Revlon's 2018 Form 10-K for certain details regarding Products Corporation's 6.25% Senior Notes that mature on August 1, 2024. The aggregate principal amount outstanding under the 6.25% Senior Notes at March 31, 2019 was $450 million. |
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Schedule of Line of Credit Facilities | At March 31, 2019, the aggregate principal amounts outstanding and availability under Products Corporation’s various revolving credit facilities were as follows:
(a) Availability as of March 31, 2019 is based upon the borrowing base then in effect of $428.4 million, less $10.9 million of outstanding undrawn letters of credit and $375.7 million then drawn. As Products Corporation’s consolidated fixed charge coverage ratio was greater than 1.0 to 1.0 as of March 31, 2019, all of the $41.8 million of availability under the Amended 2016 Revolving Credit Facility was available as of such date. |
FAIR VALUE MEASUREMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Liabilities Not Measured At Fair Value But For Which Fair Value Disclosure Is Required | As of March 31, 2019, the fair value and carrying value of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below:
As of December 31, 2018, the fair value and carrying value of the Company’s long-term debt, including the current portion of long-term debt, are categorized in the table below:
(a) The fair value of the Company's long-term debt, including the current portion of long-term debt, is based on quoted market prices for similar issuances and maturities. |
FINANCIAL INSTRUMENTS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effects of Derivative Financial Instruments on Income and Other Comprehensive Income (Loss) | The effects of the Company's derivative financial instruments on its Unaudited Consolidated Statements of Operations and Comprehensive Loss were as follows for the periods presented:
(a) Net of tax benefits of $0.2 million for the three months ended March 31, 2018. |
PENSION AND POST-RETIREMENT BENEFITS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Retirement Benefits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Net Periodic Benefit (Income) Costs | The components of net periodic benefit costs for the Company's pension and the other post-retirement benefit plans were as follows for the periods presented:
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Classification of Net Periodic Benefit (Income) Costs | Net periodic benefit costs are reflected in the Company's Unaudited Consolidated Financial Statements as follows for the periods presented:
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STOCK COMPENSATION PLAN (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted stock units award activity | During the three months ended March 31, 2019, the activity related to time-based and performance-based LTIP RSUs previously granted to eligible employees and the grant date fair value per share related to these LTIP RSUs were as follows:
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss | A roll-forward of the Company's accumulated other comprehensive loss as of March 31, 2019 is as follows:
(a) Amounts represent the change in accumulated other comprehensive loss as a result of the amortization of actuarial losses (gains) arising during each year related to the Company’s pension and other post-retirement plans. See Note 11, "Pension and Post-retirement Benefits," for further discussion of the Company’s pension and other post-retirement plans. |
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Reclassification out of Accumulated Other Comprehensive Loss | For the three months ended March 31, 2019, the Company did not have any activity related to financial instruments. The following is a roll-forward of the amounts reclassified out of accumulated other comprehensive loss into earnings during the three months ended March 31, 2018 related to the 2013 Interest Rate Swap:
(a) Reclassified to interest expense. |
SEGMENT DATA AND RELATED INFORMATION (Tables) |
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Segment Reporting Information, by Segment | The following table is a comparative summary of the Company’s net sales and segment profit by reportable segment for the periods presented.
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Schedule of Net Sales and Long-Lived Assets by Geographic Area | The following table presents the Company's long-lived assets by geographic area as of March 31, 2019 and December 31, 2018:
The following tables present the Company's segment net sales by geography and total net sales by classes of similar products for the periods presented:
* The EMEA region includes Europe, the Middle East, Africa and the Company's international Travel Retail business; the Latin America region includes Mexico; and the Pacific region includes Australia and New Zealand.
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Schedule of Net Sales by Classes of Similar Products |
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BASIC AND DILUTED EARNINGS PER COMMON SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share, Basic and Diluted [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Basic and Diluted Earnings Per Share | Following are the components of basic and diluted loss per common share for the periods presented:
|
DESCRIPTION OF BUSINESS AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019
segment
| |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of reporting segments | 4 |
RESTRUCTURING CHARGES - Additional Information (Details) - USD ($) |
3 Months Ended | 5 Months Ended | 9 Months Ended | 28 Months Ended | 49 Months Ended | |
---|---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2019 |
Dec. 31, 2019 |
Mar. 31, 2019 |
Dec. 31, 2020 |
Dec. 31, 2018 |
|
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | $ 7,700,000 | |||||
Restructuring and related charges | 12,100,000 | |||||
2018 Optimization Restructuring Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Additional capital expenditures, expected cost | $ 10,000,000 | $ 10,000,000 | $ 10,000,000 | |||
Percent of restructuring charges expected to be paid in cash | 85.00% | 85.00% | 85.00% | |||
Payments for restructuring | $ 3,000,000 | $ 3,800,000 | ||||
Restructuring costs recognized to date | 17,400,000 | 17,400,000 | $ 17,400,000 | $ 5,700,000 | ||
Restructuring and related charges | 11,700,000 | |||||
2018 Optimization Restructuring Program | Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring and related charges | 30,000,000 | 30,000,000 | 30,000,000 | |||
2018 Optimization Restructuring Program | Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Expected restructuring and related charges | 40,000,000 | 40,000,000 | 40,000,000 | |||
2018 Optimization Restructuring Program | Employee-related costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | 1,800,000 | |||||
Restructuring costs recognized to date | 9,600,000 | 9,600,000 | 9,600,000 | 4,500,000 | ||
Restructuring and related charges | 5,100,000 | |||||
2018 Optimization Restructuring Program | Other Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs recognized to date | 0 | 0 | 0 | $ 0 | ||
Restructuring and related charges | 0 | |||||
EA Integration Restructuring Program | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | 3,100,000 | 67,000,000 | ||||
Restructuring costs recognized to date | 82,200,000 | 82,200,000 | 82,200,000 | |||
Restructuring and related charges | 0 | |||||
EA Integration Restructuring Program | Employee-related costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | 3,000,000 | |||||
Restructuring costs recognized to date | 72,200,000 | 72,200,000 | 72,200,000 | |||
Restructuring and related charges | 0 | |||||
EA Integration Restructuring Program | Lease termination costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs recognized to date | 5,100,000 | 5,100,000 | 5,100,000 | |||
EA Integration Restructuring Program | Other Costs | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Restructuring costs recognized to date | $ 4,900,000 | $ 4,900,000 | $ 4,900,000 | |||
Scenario, Forecast | 2018 Optimization Restructuring Program | Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | $ 22,000,000 | |||||
Scenario, Forecast | 2018 Optimization Restructuring Program | Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | $ 30,000,000 | |||||
Scenario, Forecast | EA Integration Restructuring Program | Minimum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | $ 80,000,000 | |||||
Scenario, Forecast | EA Integration Restructuring Program | Maximum | ||||||
Restructuring Cost and Reserve [Line Items] | ||||||
Payments for restructuring | $ 85,000,000 |
RESTRUCTURING CHARGES - Restructuring and Related Charges (Details) - USD ($) |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related charges | $ 12,100,000 | |
2018 Optimization Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 17,400,000 | $ 5,700,000 |
Restructuring and related charges | 11,700,000 | |
2018 Optimization Restructuring Program | Employee Severance and Other Personnel Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 9,600,000 | 4,500,000 |
Restructuring and related charges | 5,100,000 | |
2018 Optimization Restructuring Program | Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 0 | 0 |
Restructuring and related charges | 0 | |
2018 Optimization Restructuring Program | Total Restructuring Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 9,600,000 | 4,500,000 |
Restructuring and related charges | 5,100,000 | |
2018 Optimization Restructuring Program | Other Related Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 7,800,000 | $ 1,200,000 |
Restructuring and related charges | 6,600,000 | |
EA Integration Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 82,200,000 | |
Restructuring and related charges | 0 | |
EA Integration Restructuring Program | Employee Severance and Other Personnel Benefits | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 72,200,000 | |
Restructuring and related charges | 0 | |
EA Integration Restructuring Program | Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 4,900,000 | |
EA Integration Restructuring Program | Lease Termination and Other Costs | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 5,100,000 | |
EA Integration Restructuring Program | Total Restructuring Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 77,300,000 | |
EA Integration Restructuring Program | Inventory Adjustments | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 1,900,000 | |
EA Integration Restructuring Program | Other Related Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 3,000,000 | |
Restructuring and related charges | 0 | |
Operating segments | 2018 Optimization Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 9,600,000 | |
Restructuring and related charges | 5,100,000 | |
Operating segments | EA Integration Restructuring Program | Total Restructuring Charges | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 77,300,000 | |
Operating segments | Revlon | 2018 Optimization Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 4,700,000 | |
Restructuring and related charges | 2,800,000 | |
Operating segments | Revlon | EA Integration Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 32,900,000 | |
Operating segments | Elizabeth Arden | 2018 Optimization Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 1,800,000 | |
Restructuring and related charges | 900,000 | |
Operating segments | Elizabeth Arden | EA Integration Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 13,300,000 | |
Operating segments | Portfolio | 2018 Optimization Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 1,700,000 | |
Restructuring and related charges | 700,000 | |
Operating segments | Portfolio | EA Integration Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 13,100,000 | |
Operating segments | Fragrance | 2018 Optimization Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | 1,400,000 | |
Restructuring and related charges | 700,000 | |
Operating segments | Fragrance | EA Integration Restructuring Program | ||
Restructuring Cost and Reserve [Line Items] | ||
Cumulative charges incurred | $ 18,000,000 |
RESTRUCTURING CHARGES - Restructuring Reserve (Details) - USD ($) |
3 Months Ended | 5 Months Ended | 28 Months Ended |
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2019 |
Mar. 31, 2019 |
|
Restructuring Reserve [Roll Forward] | |||
Liability Balance at period start | $ 28,300,000 | ||
Expense, Net | 12,100,000 | ||
Foreign Currency Translation | (200,000) | ||
Cash utilized, net | (7,700,000) | ||
Non-cash utilized, net | (3,500,000) | ||
Liability Balance at period end | 29,000,000 | $ 29,000,000 | $ 29,000,000 |
2018 Optimization Restructuring Program | |||
Restructuring Reserve [Roll Forward] | |||
Liability Balance at period start | 4,900,000 | ||
Expense, Net | 11,700,000 | ||
Foreign Currency Translation | 0 | ||
Cash utilized, net | (3,000,000) | (3,800,000) | |
Non-cash utilized, net | 0 | ||
Liability Balance at period end | 13,600,000 | 13,600,000 | 13,600,000 |
2018 Optimization Restructuring Program | Employee severance and other personnel benefits | |||
Restructuring Reserve [Roll Forward] | |||
Liability Balance at period start | 3,700,000 | ||
Expense, Net | 5,100,000 | ||
Foreign Currency Translation | 0 | ||
Cash utilized, net | (1,800,000) | ||
Non-cash utilized, net | 0 | ||
Liability Balance at period end | 7,000,000 | 7,000,000 | 7,000,000 |
2018 Optimization Restructuring Program | Other | |||
Restructuring Reserve [Roll Forward] | |||
Liability Balance at period start | 1,200,000 | ||
Expense, Net | 6,600,000 | ||
Foreign Currency Translation | 0 | ||
Cash utilized, net | (1,200,000) | ||
Non-cash utilized, net | 0 | ||
Liability Balance at period end | 6,600,000 | 6,600,000 | 6,600,000 |
EA Integration Restructuring Program | |||
Restructuring Reserve [Roll Forward] | |||
Liability Balance at period start | 18,000,000 | ||
Expense, Net | 0 | ||
Foreign Currency Translation | (200,000) | ||
Cash utilized, net | (3,100,000) | (67,000,000) | |
Non-cash utilized, net | (3,500,000) | ||
Liability Balance at period end | 11,200,000 | 11,200,000 | 11,200,000 |
EA Integration Restructuring Program | Employee severance and other personnel benefits | |||
Restructuring Reserve [Roll Forward] | |||
Liability Balance at period start | 13,800,000 | ||
Expense, Net | 0 | ||
Foreign Currency Translation | (200,000) | ||
Cash utilized, net | (3,000,000) | ||
Non-cash utilized, net | 0 | ||
Liability Balance at period end | 10,600,000 | 10,600,000 | 10,600,000 |
EA Integration Restructuring Program | Other | |||
Restructuring Reserve [Roll Forward] | |||
Liability Balance at period start | 4,200,000 | ||
Expense, Net | 0 | ||
Foreign Currency Translation | 0 | ||
Cash utilized, net | (100,000) | ||
Non-cash utilized, net | (3,500,000) | ||
Liability Balance at period end | 600,000 | 600,000 | 600,000 |
Other immaterial actions | |||
Restructuring Reserve [Roll Forward] | |||
Liability Balance at period start | 5,400,000 | ||
Expense, Net | 400,000 | ||
Foreign Currency Translation | 0 | ||
Cash utilized, net | (1,600,000) | ||
Non-cash utilized, net | 0 | ||
Liability Balance at period end | 4,200,000 | 4,200,000 | 4,200,000 |
Other immaterial actions | Employee severance and other personnel benefits | |||
Restructuring Reserve [Roll Forward] | |||
Liability Balance at period start | 4,600,000 | ||
Expense, Net | 200,000 | ||
Foreign Currency Translation | 0 | ||
Cash utilized, net | (1,100,000) | ||
Non-cash utilized, net | 0 | ||
Liability Balance at period end | 3,700,000 | 3,700,000 | 3,700,000 |
Other immaterial actions | Other | |||
Restructuring Reserve [Roll Forward] | |||
Liability Balance at period start | 800,000 | ||
Expense, Net | 200,000 | ||
Foreign Currency Translation | 0 | ||
Cash utilized, net | (500,000) | ||
Non-cash utilized, net | 0 | ||
Liability Balance at period end | $ 500,000 | $ 500,000 | $ 500,000 |
DISCONTINUED OPERATIONS (Details) $ in Millions |
3 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2019
USD ($)
|
Mar. 31, 2018
USD ($)
|
Dec. 31, 2014
job_position
|
Dec. 31, 2018
USD ($)
|
|
Income Statement Disclosures [Abstract] | ||||
Income from discontinued operations, net of taxes | $ 0.7 | $ 1.4 | ||
Discontinued Operations | Operations in China | ||||
Income Statement Disclosures [Abstract] | ||||
Net sales | 0.0 | 0.0 | ||
Income from discontinued operations, before taxes | 0.7 | 1.4 | ||
Provision for income taxes | 0.0 | 0.0 | ||
Income from discontinued operations, net of taxes | 0.7 | $ 1.4 | ||
Balance Sheet Disclosures [Abstract] | ||||
Cash and cash equivalents | 1.1 | $ 1.1 | ||
Trade receivables, net | 0.0 | 0.2 | ||
Total current assets | 1.1 | 1.3 | ||
Total assets | 1.1 | 1.3 | ||
Accounts payable | 0.0 | 0.5 | ||
Accrued expenses and other | 3.1 | 3.3 | ||
Total current liabilities | 3.1 | 3.8 | ||
Total liabilities | $ 3.1 | $ 3.8 | ||
December 2013 Program | ||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||
Number of positions eliminated | job_position | 1,100 |
INVENTORIES - Components of Inventories (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Inventory Disclosure [Abstract] | ||
Raw materials and supplies | $ 137.9 | $ 143.5 |
Work-in-process | 6.8 | 5.6 |
Finished goods | 402.0 | 374.1 |
Inventories | $ 546.7 | $ 523.2 |
LEASES - Narrative (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Jan. 01, 2019 |
---|---|---|
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease liability | $ 114.9 | |
Finance lease liability | $ 1.2 | |
Discount rate | 16.00% | |
Accounting Standards Update 2016-02 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Operating lease, right of use asset | $ 109.3 | |
Finance lease, right of use asset | 1.5 | |
Operating lease liability | 123.4 | |
Finance lease liability | 1.4 | |
Accrued rent | (11.3) | |
Accrued rent, recorded in other long-term liabilities | (10.7) | |
Accrued rent, recorded in accrued expenses and other current liabilities | (0.6) | |
Lease termination liability | 3.5 | |
Prepaid rent | $ (0.7) |
LEASES - Lease Disclosure (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Finance Lease Cost: | |
Amortization on ROU assets for finance leases | $ 0.0 |
Interest on lease liabilities | 0.0 |
Operating Lease Cost | 10.6 |
Total Lease Cost | 10.6 |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows from finance leases | 0.0 |
Operating cash flows from operating leases | 11.0 |
Financing cash flows from finance leases | 0.2 |
ROU assets for finance leases | 1.5 |
ROU assets for operating leases | 103.4 |
Amortization on ROU assets for operating leases | $ 5.9 |
Weighted-average remaining lease term - finance leases | 2 years 4 months |
Weighted-average remaining lease term - operating leases | 6 years 5 months |
Weighted-average discount rate - finance leases | 6.10% |
Weighted-average discount rate - operating leases | 15.50% |
LEASES - Maturities of Lease Liabilities (Details) $ in Millions |
Mar. 31, 2019
USD ($)
|
---|---|
Operating Leases | |
April 2019 through December 2019 | $ 29.6 |
2020 | 33.6 |
2021 | 30.0 |
2022 | 23.2 |
2023 | 19.0 |
Thereafter | 60.6 |
Total undiscounted cash flows | 196.0 |
Total lease liability | 114.9 |
Short-term lease liability | 16.9 |
Long-term lease liability | 98.0 |
Difference between undiscounted cash flows and discounted cash flows | 81.1 |
Finance Leases | |
April 2019 through December 2019 | 0.6 |
2020 | 0.4 |
2021 | 0.2 |
2022 | 0.1 |
2023 | 0.0 |
Thereafter | 0.0 |
Total undiscounted cash flows | 1.3 |
Total lease liability | 1.2 |
Short-term lease liability | 0.7 |
Long-term lease liability | 0.5 |
Difference between undiscounted cash flows and discounted cash flows | $ 0.1 |
GOODWILL AND INTANGIBLE ASSETS, NET - Changes in Goodwill by Segment (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
| |
Goodwill [Roll Forward] | |
Beginning Balance | $ 673,900,000 |
Ending Balance | 673,700,000 |
Goodwill impairment charge | 0 |
Operating segments | Consumer | |
Goodwill [Roll Forward] | |
Beginning Balance | 265,000,000 |
Foreign currency translation adjustment | (100,000) |
Ending Balance | 264,900,000 |
Cumulative goodwill impairment charges | |
Operating segments | Professional | |
Goodwill [Roll Forward] | |
Beginning Balance | 171,200,000 |
Foreign currency translation adjustment | (100,000) |
Ending Balance | 171,100,000 |
Cumulative goodwill impairment charges | |
Operating segments | Elizabeth Arden | |
Goodwill [Roll Forward] | |
Beginning Balance | 116,900,000 |
Foreign currency translation adjustment | 0 |
Ending Balance | 116,900,000 |
Cumulative goodwill impairment charges | |
Operating segments | Fragrance | |
Goodwill [Roll Forward] | |
Beginning Balance | 120,800,000 |
Foreign currency translation adjustment | 0 |
Ending Balance | 120,800,000 |
Cumulative goodwill impairment charges | |
Operating segments | Revlon, Portfolio, Elizabeth Arden and Fragrances Segments | |
Goodwill [Roll Forward] | |
Beginning Balance | 673,900,000 |
Foreign currency translation adjustment | (200,000) |
Ending Balance | 673,700,000 |
Cumulative goodwill impairment charges | $ (55,200,000) |
GOODWILL AND INTANGIBLE ASSETS, NET - Summary of Intangible Assets (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | $ 573.0 | $ 574.1 | |
Finite-lived intangible assets, accumulated amortization | (201.0) | (187.3) | |
Finite-lived intangible assets, net carrying amount | 372.0 | 386.8 | |
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, carrying amount | 143.8 | 145.2 | |
Intangible assets, gross carrying amount | 716.8 | 719.3 | |
Intangible assets, net carrying amount | 515.8 | 532.0 | |
Trade names | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets, carrying amount | 143.8 | 145.2 | |
Trademarks and licenses | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | 271.7 | 272.3 | |
Finite-lived intangible assets, accumulated amortization | (98.7) | (94.3) | |
Finite-lived intangible assets, net carrying amount | $ 173.0 | 178.0 | |
Weighted average useful life | 13 years | 13 years | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | $ 248.1 | 248.6 | |
Finite-lived intangible assets, accumulated amortization | (86.3) | (77.9) | |
Finite-lived intangible assets, net carrying amount | $ 161.8 | 170.7 | |
Weighted average useful life | 12 years | 12 years | |
Patents and internally-developed intellectual property | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | $ 20.9 | 20.9 | |
Finite-lived intangible assets, accumulated amortization | (10.5) | (10.1) | |
Finite-lived intangible assets, net carrying amount | $ 10.4 | 10.8 | |
Weighted average useful life | 15 years | 6 years | |
Distribution rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | $ 31.0 | 31.0 | |
Finite-lived intangible assets, accumulated amortization | (4.4) | (4.0) | |
Finite-lived intangible assets, net carrying amount | $ 26.6 | 27.0 | |
Weighted average useful life | 6 years | 16 years | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Finite-lived intangible assets, gross carrying amount | $ 1.3 | 1.3 | |
Finite-lived intangible assets, accumulated amortization | (1.1) | (1.0) | |
Finite-lived intangible assets, net carrying amount | $ 0.2 | $ 0.3 | |
Weighted average useful life | 1 year | 1 year |
GOODWILL AND INTANGIBLE ASSETS, NET - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization expense | $ 14.8 | $ 10.0 |
GOODWILL AND INTANGIBLE ASSETS, NET - Estimated Future Amortization Expense (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Goodwill and Intangible Assets Disclosure [Abstract] | ||
2019 | $ 26.3 | |
2020 | 34.1 | |
2021 | 33.2 | |
2022 | 32.3 | |
2023 | 30.7 | |
Thereafter | 215.4 | |
Finite-lived intangible assets, net carrying amount | $ 372.0 | $ 386.8 |
ACCRUED EXPENSES AND OTHER - Components of Accrued Expenses and Other (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Payables and Accruals [Abstract] | ||
Sales returns and allowances | $ 85.8 | $ 97.7 |
Advertising and promotional costs | 63.6 | 76.2 |
Compensation and related benefits | 40.1 | 55.9 |
Taxes | 23.5 | 30.9 |
Restructuring reserve | 21.7 | 26.4 |
Interest | 19.7 | 33.8 |
Other | 123.5 | 110.0 |
Total | $ 377.9 | $ 430.9 |
LONG-TERM DEBT - Components of Long-term Debt (Details) |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Mar. 31, 2020
USD ($)
|
Dec. 31, 2018
USD ($)
|
Mar. 31, 2019
USD ($)
|
Mar. 06, 2019
USD ($)
|
Dec. 31, 2018
EUR (€)
|
Dec. 31, 2018
USD ($)
|
Apr. 30, 2018
USD ($)
|
Sep. 07, 2016 |
|
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 3,113,600,000 | $ 3,075,800,000 | ||||||
Less current portion | (389,700,000) | (348,100,000) | ||||||
Long-term debt | 2,723,900,000 | 2,727,700,000 | ||||||
Short-term borrowings | 8,600,000 | 9,300,000 | ||||||
2018 Foreign Asset-Based Term Loan Credit Agreement due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 81,000,000 | 82,700,000 | ||||||
2016 Revolving Credit Facility due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 371,600,000 | 330,000,000 | ||||||
Less current portion | (371,600,000) | (330,000,000) | ||||||
2016 Term Loan due 2023 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 1,721,800,000 | 1,724,600,000 | ||||||
Repayment of debt | $ 18,000,000 | |||||||
Amount by which available liquidity does not exceed principal amount of other debt | 200,000,000 | |||||||
Aggregate principal amount outstanding | $ 1,755,000,000 | |||||||
5.75% Senior Notes due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 5.75% | 5.75% | ||||||
Long-term debt | $ 497,000,000 | 496,600,000 | ||||||
Aggregate principal amount outstanding | $ 500,000,000 | |||||||
6.25% Senior Notes due 2024 | ||||||||
Debt Instrument [Line Items] | ||||||||
Stated interest rate | 6.25% | 6.25% | ||||||
Long-term debt | $ 441,800,000 | 441,400,000 | ||||||
Aggregate principal amount outstanding | 450,000,000 | |||||||
Spanish Government Loan due 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 400,000 | $ 500,000 | ||||||
Scenario, Forecast | 2016 Revolving Credit Facility due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Repayment of debt | $ 18,000,000 | |||||||
Revolving Credit Facility | 2016 Revolving Credit Facility due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | 441,500,000.0 | |||||||
Revolving Credit Facility | Amended 2016 Revolving Credit Facility, Tranche A | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 338,200,000 | |||||||
Maximum borrowing capacity | 400,000,000.0 | 400,000,000 | ||||||
Amount by which available liquidity does not exceed principal amount of other debt | 200,000,000 | |||||||
Revolving Credit Facility | Amended 2016 Revolving Credit Facility, Tranche B | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | 37,500,000 | |||||||
Maximum borrowing capacity | $ 41,500,000.0 | $ 41,500,000.0 | 41,500,000.0 | |||||
Letter of Credit | Amended 2016 Revolving Credit Facility, Tranche A | ||||||||
Debt Instrument [Line Items] | ||||||||
Long-term debt | $ 10,900,000 | |||||||
Secured Debt | 2018 Foreign Asset-Based Term Loan Credit Agreement due 2021 | ||||||||
Debt Instrument [Line Items] | ||||||||
Maximum borrowing capacity | € | € 77,000,000 |
LONG-TERM DEBT - Narrative (Details) - USD ($) |
Mar. 07, 2019 |
Mar. 06, 2019 |
Mar. 05, 2019 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Apr. 30, 2018 |
---|---|---|---|---|---|---|
Debt Instrument [Line Items] | ||||||
Cash and cash equivalents | $ 68,300,000 | $ 87,300,000 | ||||
Revolving Credit Facility | Amended 2016 Revolving Credit Facility, Tranche B | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | $ 41,500,000.0 | 41,500,000.0 | $ 41,500,000.0 | |||
Potential increase of maximum borrowing capacity | 5.00% | |||||
Covenant terms, liquidity | $ 35,000,000 | $ 50,000,000 | $ 35,000,000 | |||
Covenant terms, percentage of maximum | 10.00% | 15.00% | 10.00% | |||
Remaining borrowing capacity | $ 37,300,000 | 0 | ||||
Borrowing Base | $ 41,300,000 | 37,500,000 | ||||
Covenant terms, consolidated fixed charge coverage ratio | 100.00% | |||||
Covenant terms, liquidity threshold, consecutive business days | 20 days | |||||
Foreign Subsidiaries | ||||||
Debt Instrument [Line Items] | ||||||
Cash and cash equivalents | $ 63,200,000 |
LONG-TERM DEBT - Covenants (Details) - USD ($) |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 06, 2019 |
Mar. 31, 2019 |
Mar. 07, 2019 |
Dec. 31, 2018 |
Apr. 30, 2018 |
|
2016 Revolving Credit Facility due 2021 | |||||
Debt Instrument [Line Items] | |||||
Amount of liquidity and availability | $ 41,800,000 | ||||
Revolving Credit Facility | Tranche A | |||||
Debt Instrument [Line Items] | |||||
Commitment | 400,000,000.0 | $ 400,000,000 | |||
Borrowing Base | 390,900,000 | ||||
Aggregate principal amount outstanding | 338,200,000 | ||||
Availability | 41,800,000 | ||||
Calculated borrowing base | 428,400,000 | ||||
Revolving Credit Facility | Tranche B | |||||
Debt Instrument [Line Items] | |||||
Commitment | $ 41,500,000.0 | 41,500,000.0 | $ 41,500,000.0 | ||
Borrowing Base | 37,500,000 | $ 41,300,000 | |||
Aggregate principal amount outstanding | 37,500,000 | ||||
Availability | 0 | $ 37,300,000 | |||
Covenant terms, consolidated fixed charge coverage ratio | 100.00% | ||||
Revolving Credit Facility | 2016 Revolving Credit Facility due 2021 | |||||
Debt Instrument [Line Items] | |||||
Commitment | 441,500,000.0 | ||||
Borrowing Base | 428,400,000 | ||||
Aggregate principal amount outstanding | 375,700,000 | ||||
Availability | $ 41,800,000 | ||||
Covenant terms, consolidated fixed charge coverage ratio | 100.00% | ||||
Sublimit, letters of credit | |||||
Debt Instrument [Line Items] | |||||
Standby and trade letters of credit for various corporate purposes | $ 10,900,000 | $ 10,100,000 | |||
Sublimit, letters of credit | Tranche A | |||||
Debt Instrument [Line Items] | |||||
Standby and trade letters of credit for various corporate purposes | $ 10,900,000 |
FAIR VALUE MEASUREMENTS - Schedule of Fair Values of Financial Liabilities (Details) - USD ($) $ in Millions |
Mar. 31, 2019 |
Dec. 31, 2018 |
---|---|---|
Liabilities: | ||
Fair Value, Long-term debt, including current portion | $ 2,392.4 | $ 2,259.5 |
Carrying Value, Long-term debt, including current portion | 3,113.6 | 3,075.8 |
Level 1 | ||
Liabilities: | ||
Fair Value, Long-term debt, including current portion | 0.0 | 0.0 |
Level 2 | ||
Liabilities: | ||
Fair Value, Long-term debt, including current portion | 2,392.4 | 2,259.5 |
Level 3 | ||
Liabilities: | ||
Fair Value, Long-term debt, including current portion | $ 0.0 | $ 0.0 |
FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) |
1 Months Ended | 3 Months Ended | |||||
---|---|---|---|---|---|---|---|
Dec. 31, 2016 |
Mar. 31, 2019 |
Dec. 31, 2018 |
Mar. 31, 2018 |
Dec. 31, 2017 |
Sep. 07, 2016 |
Nov. 30, 2013 |
|
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||
Accumulated income (loss) | $ 1,132,200,000 | $ 1,056,800,000 | $ 855,700,000 | $ 770,400,000 | |||
FX Contracts | $ 0 | 0 | |||||
6.25% Senior Notes due 2024 | |||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||
Stated interest rate | 6.25% | 6.25% | |||||
Foreign exchange contracts | |||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||
Derivative, notional amount | $ 0 | 0 | |||||
Term of contract | 1 year | ||||||
Interest rate swap | |||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||
Derivative, notional amount | $ 400,000,000 | $ 400,000,000 | |||||
Floor interest rate (percent) | 0.75% | 1.00% | |||||
Term of contract | 3 years | ||||||
Fixed interest rate (percent) | 2.0709% | ||||||
Fixed interest rate on debt (percent) | 5.5709% | ||||||
Accumulated deferred losses, gross | $ 6,300,000 | ||||||
Interest rate swap | Deferred gain - hedging | |||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||
Accumulated income (loss) | 100,000 | $ 700,000 | $ 3,900,000 | ||||
Standby letters of credit which support Products Corporation self insurance programs | |||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||
Standby and trade letters of credit for various corporate purposes | $ 7,800,000 | 7,300,000 | |||||
Sublimit, letters of credit | |||||||
Fair Value Measurements Of Financial Instruments [Line Items] | |||||||
Standby and trade letters of credit for various corporate purposes | $ 10,900,000 | $ 10,100,000 |
FINANCIAL INSTRUMENTS - Effects of Derivative Financial Instruments, Other Comprehensive Income (Loss) and Net Income (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Derivative Instruments, Gain (Loss) [Line Items] | ||
Revaluation of derivative financial instruments, net of reclassifications into earnings, tax expense (benefit) | $ 0.2 | |
Interest rate swap | Interest Expense | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Net Loss | $ 0.0 | (0.8) |
Interest rate swap | Miscellaneous, net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Net Loss | 0.0 | 0.2 |
Interest rate swap | Designated as hedging instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain Recognized in Other Comprehensive Loss | 0.0 | 0.6 |
Foreign exchange contracts | Foreign currency gain (loss), net | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Amount of Gain (Loss) Recognized in Net Loss | $ 0.0 | $ 0.1 |
PENSION AND POST-RETIREMENT BENEFITS - Components of Net Periodic Benefit Costs (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Net periodic benefit costs: | |||
Total net periodic benefit costs | $ 2.0 | $ 0.6 | $ 2.6 |
Pension Plans | |||
Net periodic benefit costs: | |||
Service cost | 0.5 | 0.5 | |
Interest cost | 4.9 | 4.6 | |
Expected return on plan assets | (6.0) | (7.0) | |
Amortization of actuarial loss | 2.4 | 2.3 | |
Total net periodic benefit costs prior to allocation | 1.8 | 0.4 | |
Portion allocated to Revlon Holdings | 0.0 | 0.0 | |
Total net periodic benefit costs | 1.8 | 0.4 | |
Other Post-Retirement Benefit Plans | |||
Net periodic benefit costs: | |||
Service cost | 0.0 | 0.0 | |
Interest cost | 0.1 | 0.1 | |
Expected return on plan assets | 0.0 | 0.0 | |
Amortization of actuarial loss | 0.1 | 0.1 | |
Total net periodic benefit costs prior to allocation | 0.2 | 0.2 | |
Portion allocated to Revlon Holdings | 0.0 | 0.0 | |
Total net periodic benefit costs | $ 0.2 | $ 0.2 |
PENSION AND POST-RETIREMENT BENEFITS - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit (income) costs | $ 2.0 | $ 0.6 | $ 2.6 |
Net periodic benefit (income) costs next fiscal year | 7.9 | ||
Estimated contributions in next fiscal year | 12.0 | ||
Pension Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit (income) costs | 1.8 | 0.4 | |
Employer contributions | 1.6 | ||
Other Post-Retirement Benefit Plans | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit (income) costs | 0.2 | $ 0.2 | |
Employer contributions | $ 0.2 |
PENSION AND POST-RETIREMENT BENEFITS - Classification of Net Periodic Pension (Income) Costs (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit (income) costs | $ 2.0 | $ 0.6 | $ 2.6 |
Selling, general and administrative expense | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit (income) costs | 0.5 | 0.5 | |
Miscellaneous, net | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Net periodic benefit (income) costs | $ 1.5 | $ 0.1 |
STOCK COMPENSATION PLAN - Narrative (Details) $ in Millions |
3 Months Ended |
---|---|
Mar. 31, 2019
USD ($)
shares
| |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Shares reserved for issuance (in shares) | 6,565,000 |
Shares remaining available for grants (in shares) | 2,700,000 |
Term of plan | 7 years |
Time-Based LTIP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Allocated share-based compensation expense | $ | $ 0.1 |
Deferred stock-based compensation | $ | $ 6.1 |
Number of awards vested (in shares) | 193,200 |
Performance-Based LTIP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Allocated share-based compensation expense | $ | $ 0.1 |
Deferred stock-based compensation | $ | $ 7.3 |
Number of awards vested (in shares) | 0 |
2018 Long Term Incentive Program | Time-based and Performance-based RSU Awards | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Awards granted (in shares) | 0 |
2018 Long Term Incentive Program | Time-Based LTIP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
2018 Long Term Incentive Program | Performance-Based LTIP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 3 years |
2017 Long Term Incentive Program | Performance-Based LTIP | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Vesting period | 2 years |
STOCK COMPENSATION PLAN - Restricted Stock Unit Activity (Details) |
3 Months Ended |
---|---|
Mar. 31, 2019
$ / shares
shares
| |
Time-Based LTIP | |
Restricted Stock | |
Outstanding, beginning of period (in shares) | 591,100 |
Vested (in shares) | (193,200) |
Forfeited/Canceled (in shares) | (55,500) |
Outstanding, end of period (in shares) | 342,400 |
Performance-Based LTIP | |
Restricted Stock | |
Outstanding, beginning of period (in shares) | 591,100 |
Vested (in shares) | 0 |
Forfeited/Canceled (in shares) | (58,000) |
Outstanding, end of period (in shares) | 533,100 |
2018 | Time-Based LTIP | |
Restricted Stock | |
Outstanding, beginning of period (in shares) | 434,700 |
Vested (in shares) | (128,900) |
Forfeited/Canceled (in shares) | (33,800) |
Outstanding, end of period (in shares) | 272,000 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 19.11 |
Vested (in dollars per share) | $ / shares | 19.04 |
Forfeited/Canceled (in dollars per share) | $ / shares | 19.70 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 19.08 |
2018 | Performance-Based LTIP | |
Restricted Stock | |
Outstanding, beginning of period (in shares) | 434,700 |
Vested (in shares) | 0 |
Forfeited/Canceled (in shares) | (34,900) |
Outstanding, end of period (in shares) | 399,800 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 19.11 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited/Canceled (in dollars per share) | $ / shares | 19.70 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 19.06 |
2017 | Time-Based LTIP | |
Restricted Stock | |
Outstanding, beginning of period (in shares) | 156,400 |
Vested (in shares) | (64,300) |
Forfeited/Canceled (in shares) | (21,700) |
Outstanding, end of period (in shares) | 70,400 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 19.70 |
Vested (in dollars per share) | $ / shares | 19.70 |
Forfeited/Canceled (in dollars per share) | $ / shares | 19.70 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 19.70 |
2017 | Performance-Based LTIP | |
Restricted Stock | |
Outstanding, beginning of period (in shares) | 156,400 |
Vested (in shares) | 0 |
Forfeited/Canceled (in shares) | (23,100) |
Outstanding, end of period (in shares) | 133,300 |
Weighted Average Grant Date Fair Value Per Share | |
Outstanding, beginning of period (in dollars per share) | $ / shares | $ 19.70 |
Vested (in dollars per share) | $ / shares | 0 |
Forfeited/Canceled (in dollars per share) | $ / shares | 19.70 |
Outstanding, end of period (in dollars per share) | $ / shares | $ 19.70 |
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Income Tax Disclosure [Abstract] | ||
Provision (benefit) for income taxes | $ 0.1 | $ (1.6) |
Change in provision for income taxes | $ 1.7 |
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Millions |
3 Months Ended | ||||
---|---|---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | $ (1,056.8) | $ (770.4) | |||
Other comprehensive income | [1] | 0.9 | 0.2 | ||
Ending balance | (1,132.2) | (855.7) | |||
Accumulated Other Comprehensive Loss | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (234.2) | (228.4) | |||
Other comprehensive income | [1] | 0.9 | 0.2 | ||
Ending balance | (233.3) | $ (228.2) | |||
Foreign Currency Translation | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (24.4) | ||||
Other comprehensive income | (1.3) | ||||
Ending balance | (25.7) | ||||
Actuarial (Loss) Gain on Post-retirement Benefits | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (209.5) | ||||
Other comprehensive income | 2.2 | ||||
Ending balance | (207.3) | ||||
Actuarial (Loss) Gain on Post-retirement Benefits - Amortization of pension related costs | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Other comprehensive income | 2.2 | ||||
Other comprehensive income (loss), tax expense (benefit) | (0.3) | ||||
Other | |||||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||||
Beginning balance | (0.3) | ||||
Other comprehensive income | 0.0 | ||||
Ending balance | $ (0.3) | ||||
|
ACCUMULATED OTHER COMPREHENSIVE LOSS - Reclassification out of Accumulated Comprehensive Loss (Details) - USD ($) $ in Millions |
3 Months Ended | 12 Months Ended |
---|---|---|
Mar. 31, 2019 |
Dec. 31, 2018 |
|
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | $ (1,056.8) | $ (770.4) |
Ending balance | (1,132.2) | (1,056.8) |
Interest rate swap | Accumulated Net Gain (Loss) from Cash Flow Hedges Attributable to Parent | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | ||
Beginning balance | (0.1) | (0.7) |
Reclassifications into earnings, net of tax | 0.6 | |
Ending balance | $ (0.1) | |
Other Comprehensive Income (Loss), Tax [Abstract] | ||
Reclassifications into earnings - tax benefit | $ 0.2 |
SEGMENT DATA AND RELATED INFORMATION - Additional Information (Details) |
Mar. 31, 2019
country
|
---|---|
International | |
Segment Reporting Information [Line Items] | |
Number of countries in which entity operates | 25 |
SEGMENT DATA AND RELATED INFORMATION - Net Sales and Segment Profit (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Segment Reporting Information [Line Items] | ||
Net sales | $ 553.2 | $ 560.7 |
Segment profit | (23.3) | (61.7) |
Depreciation and amortization | 47.0 | 38.7 |
Non-Operating items: | ||
Restructuring and related charges | 12.1 | |
Acquisition and integration costs | 0.6 | 4.0 |
Financial control remediation actions and related charges | 0.0 | |
Interest expense | 47.7 | 39.9 |
Amortization of debt issuance costs | 3.2 | 2.3 |
Foreign currency losses (gains), net | 0.2 | (10.6) |
Miscellaneous, net | 1.3 | 0.0 |
Loss from continuing operations before income taxes | (75.7) | (93.3) |
Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 553.2 | 560.7 |
Segment profit | 38.8 | 4.2 |
Segment reconciling items | ||
Segment Reporting Information [Line Items] | ||
Depreciation and amortization | 47.0 | 38.7 |
Non-cash stock compensation expense | 0.4 | 7.7 |
Non-Operating items: | ||
Restructuring and related charges | 12.1 | 5.5 |
Acquisition and integration costs | 0.6 | 4.0 |
Oxford ERP system disruption-related charges | 0.0 | 10.0 |
Financial control remediation actions and related charges | 2.0 | |
Consumer | ||
Segment Reporting Information [Line Items] | ||
Net sales | 247.3 | 229.1 |
Consumer | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 247.3 | 229.1 |
Segment profit | 25.6 | 2.3 |
Elizabeth Arden | ||
Segment Reporting Information [Line Items] | ||
Net sales | 111.4 | 105.7 |
Elizabeth Arden | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 111.4 | 105.7 |
Segment profit | 1.9 | 1.5 |
Professional | ||
Segment Reporting Information [Line Items] | ||
Net sales | 117.2 | 134.5 |
Professional | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 117.2 | 134.5 |
Segment profit | 4.5 | (2.8) |
Fragrance | ||
Segment Reporting Information [Line Items] | ||
Net sales | 77.3 | 91.4 |
Fragrance | Operating segments | ||
Segment Reporting Information [Line Items] | ||
Net sales | 77.3 | 91.4 |
Segment profit | $ 6.8 | $ 3.2 |
SEGMENT DATA AND RELATED INFORMATION - Schedule of Net Sales and Long-Lived Assets by Geographic Area (Details) - USD ($) $ in Millions |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 553.2 | $ 560.7 | |
Long-lived assets | 1,762.2 | $ 1,691.2 | |
North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 278.7 | 283.4 | |
EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 159.8 | 168.2 | |
Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 59.8 | 52.7 | |
Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 23.0 | 25.5 | |
Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 31.9 | 30.9 | |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 1,494.0 | $ 1,416.2 | |
Percentage of long lived assets by geographic location | 85.00% | 84.00% | |
International | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Long-lived assets | $ 268.2 | $ 275.0 | |
Percentage of long lived assets by geographic location | 15.00% | 16.00% | |
Revlon | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 247.3 | 229.1 | |
Revlon | North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 133.2 | 116.2 | |
Revlon | EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 55.7 | 54.0 | |
Revlon | Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 23.9 | 25.6 | |
Revlon | Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 13.7 | 13.9 | |
Revlon | Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 20.8 | 19.4 | |
Elizabeth Arden | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 111.4 | 105.7 | |
Elizabeth Arden | North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 28.2 | 28.9 | |
Elizabeth Arden | EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 44.5 | 46.3 | |
Elizabeth Arden | Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 31.6 | 23.3 | |
Elizabeth Arden | Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 2.3 | 2.2 | |
Elizabeth Arden | Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 4.8 | 5.0 | |
Portfolio | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 117.2 | 134.5 | |
Portfolio | North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 70.1 | 81.9 | |
Portfolio | EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 37.8 | 43.2 | |
Portfolio | Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 0.8 | 1.0 | |
Portfolio | Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 5.2 | 5.3 | |
Portfolio | Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 3.3 | 3.1 | |
Fragrance | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 77.3 | 91.4 | |
Fragrance | North America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 47.2 | 56.4 | |
Fragrance | EMEA | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 21.8 | 24.7 | |
Fragrance | Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 3.5 | 2.8 | |
Fragrance | Latin America | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | 1.8 | 4.1 | |
Fragrance | Pacific | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net sales | $ 3.0 | $ 3.4 |
SEGMENT DATA AND RELATED INFORMATION - Schedule of Net Sales by Classes of Similar Products (Details) - USD ($) $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Revenue from External Customer [Line Items] | ||
Net sales | $ 553.2 | $ 560.7 |
Color cosmetics | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 202.8 | $ 199.1 |
Percentage of net sales by classes of similar products | 37.00% | 36.00% |
Fragrance | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 110.3 | $ 124.3 |
Percentage of net sales by classes of similar products | 20.00% | 22.00% |
Hair care | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 128.7 | $ 125.7 |
Percentage of net sales by classes of similar products | 23.00% | 22.00% |
Beauty care | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 41.1 | $ 44.7 |
Percentage of net sales by classes of similar products | 7.00% | 8.00% |
Skin care | ||
Revenue from External Customer [Line Items] | ||
Net sales | $ 70.3 | $ 66.9 |
Percentage of net sales by classes of similar products | 13.00% | 12.00% |
BASIC AND DILUTED EARNINGS PER COMMON SHARE - Additional Information (Details) - shares |
Mar. 31, 2019 |
Mar. 31, 2018 |
---|---|---|
Earnings Per Share, Basic and Diluted [Abstract] | ||
Stock options outstanding (shares) | 0 | 0 |
BASIC AND DILUTED EARNINGS PER COMMON SHARE - Components of Basic and Diluted Earnings Per Share (Detail) - USD ($) $ / shares in Units, $ in Millions |
3 Months Ended | |
---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
|
Numerator: | ||
Loss from continuing operations, net of taxes | $ (75.8) | $ (91.7) |
Income from discontinued operations, net of taxes | 0.7 | 1.4 |
Net loss | $ (75.1) | $ (90.3) |
Denominator: | ||
Weighted average common shares outstanding - Basic (shares) | 52,913,388 | 52,673,672 |
Effect of dilutive restricted stock (shares) | 0 | 0 |
Weighted average common shares outstanding - Diluted (shares) | 52,913,388 | 52,673,672 |
Basic loss per common share: | ||
Continuing operations (usd per share) | $ (1.43) | $ (1.74) |
Discontinued operations (usd per share) | 0.01 | 0.03 |
Net loss (usd per share) | (1.42) | (1.71) |
Diluted loss per common share: | ||
Continuing operations (usd per share) | (1.43) | (1.74) |
Discontinued operations (usd per share) | 0.01 | 0.03 |
Net loss (usd per share) | $ (1.42) | $ (1.71) |
Restricted Stock and Restricted Stock Units | ||
Diluted loss per common share: | ||
Unvested restricted stock and RSUs under the Stock Plan (in shares) | 571,069 | 104,411 |
RELATED PARTY TRANSACTIONS - Additional Information (Details) - USD ($) |
3 Months Ended | ||
---|---|---|---|
Mar. 31, 2019 |
Mar. 31, 2018 |
Dec. 31, 2018 |
|
Related Party Transaction [Line Items] | |||
Reimbursement Agreements termination notice period | 90 days | ||
Reimbursements | |||
Related Party Transaction [Line Items] | |||
Expenses related party | $ 0 | $ 100,000 | |
Receivable from related party | 0 | ||
Payable from related party | $ 300,000 | ||
Majority Shareholder | Related Party Expense, Coupon Redemptions | |||
Related Party Transaction [Line Items] | |||
Expenses related party | 2,400,000 | 7,400,000 | |
Majority Shareholder | Related Party Expense, Coupon Redemption Processing | |||
Related Party Transaction [Line Items] | |||
Expenses related party | 100,000 | 100,000 | |
Majority Shareholder | Related Party Expense, Other Fees | |||
Related Party Transaction [Line Items] | |||
Expenses related party | $ 200,000 | $ 100,000 |
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