RESTRUCTURING CHARGES

2018 Optimization Restructuring Program

In November 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 September 30, 2019 is presented in the following table:



	Restructuring Charges and Other, Net
	Employee Severance and Other Personnel Benefits		Other Costs		Total Restructuring Charges		Inventory Adjustments^(a)		Other Related Charges^(b)		Total Restructuring and Related Charges
Charges incurred through December 31, 2018	$	4.5	$	—	$	4.5	$	—	$	1.2	$	5.7
Charges incurred during the nine months ended September 30, 2019	12.0		0.5		12.5		4.2		11.4		28.1
Cumulative charges incurred through September 30, 2019	$	16.5	$	0.5	$	17.0	$	4.2	$	12.6	$	33.8

^(a) Inventory adjustments are recorded within cost of sales in the Company’s Consolidated Statement of Operations and Comprehensive Loss.

^(b)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 September 30, 2019 by reportable segment is presented in the following table:



	Charges incurred during the nine months ended September 30, 2019		Cumulative charges incurred through September 30, 2019
Revlon	$	5.7	$	7.6
Elizabeth Arden	2.5		3.4
Portfolio	2.3		3.3
Fragrances	2.0		2.7
Total	$	12.5	$	17.0

The Company expects that approximately 85% of these restructuring and related charges will be paid in cash, of which approximately $15.8 million were paid through September 30, 2019. Substantially all of the remaining balance is expected to be paid by the end of 2019, with any residual amount 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 was 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 $82.6 million of total pre-tax restructuring charges (the "EA Integration Restructuring Charges"), consisting of: (i) $72.6 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 $72.0 million were paid through September 30, 2019. The remaining balance is expected to be substantially paid by the end of 2020.

A summary of the EA Integration Restructuring Charges incurred through September 30, 2019 is presented in the following table:



	Restructuring Charges and Other, Net
	Employee Severance and Other Personnel Benefits^(a)		Lease Termination and Other Costs^(b)		Total Restructuring Charges		Inventory Adjustments^(c)		Other Related Charges^(d)		Total Restructuring and Related Charges
Charges incurred through December 31, 2018	$	72.2	$	5.1	$	77.3	$	1.9	$	3.0	$	82.2
Charges incurred during the nine months ended September 30, 2019	0.4		—		0.4		—		—		0.4
Cumulative charges incurred through September 30, 2019	$	72.6	$	5.1	$	77.7	$	1.9	$	3.0	$	82.6

^(a) Includes reversal of previously accrued restructuring charges during the three months ended September 30, 2019.

^(b) Lease termination liabilities related to certain exited office space were adjusted following the implementation of ASC 842. See Note 5, "Leases," for additional information.

^(c)Inventory adjustments are recorded within cost of sales in the Company’s Consolidated Statement of Operations and Comprehensive Loss.

^(d) 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 September 30, 2019 by reportable segment is presented in the following table:



	Charges incurred during the nine months ended September 30, 2019		Cumulative charges incurred through September 30, 2019
Revlon	$	—	$	32.9
Elizabeth Arden	0.4		13.7
Portfolio	—		13.1
Fragrances	—		18.0
Total	$	0.4	$	77.7

Restructuring Reserve

The liability balance and related activity for each of the Company's restructuring programs are presented in the following table:



									Utilized, Net
	Liability Balance at January 1, 2019		Expense, Net			Foreign Currency Translation			Cash			Non-cash			Liability Balance at September 30, 2019
2018 Optimization Program:^(a)
Employee severance and other personnel benefits	$	3.7	$	12.0		$	—		$	(6.8	)	$	—		$	8.9
Other	1.2		16.1			—			(8.2		)	—			9.1
Total 2018 Optimization Program	4.9		28.1			—			(15.0		)	—			18.0

EA Integration Restructuring Program:
Employee severance and other personnel benefits	13.8		0.4			(0.4		)	(7.7		)	—			6.1
Other^(b)	4.2		—			—			(0.4		)	(3.5		)	0.3
Total EA Integration Restructuring Program	18.0		0.4			(0.4		)	(8.1		)	(3.5		)	6.4

Other individually immaterial actions:^(c)
Employee severance and other personnel benefits	4.6		(1.4		)	—			(1.8		)	(1.1		)	0.3
Other	0.8		0.3			—			(0.4		)				0.7
Total other individually immaterial actions	5.4		(1.1		)	—			(2.2		)	(1.1		)	1.0
Total restructuring reserve	$	28.3	$	27.4		$	(0.4	)	$	(25.3	)	$	(4.6	)	$	25.4

^(a)$15.6 million relates to other restructuring-related charges that were reflected within SG&A and cost of sales in the Company’s September 30, 2019 Consolidated Statement of Operations and Comprehensive Loss.

^(b)Non-cash utilization relates to 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 the Company's other individually and collectively immaterial restructuring initiatives, including those in Denmark, Norway and Sweden.

As of September 30, 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.