PRODUCTS CORPORATION AND SUBSIDIARIES GUARANTOR FINANCIAL INFORMATION (Tables)

6 Months Ended

Jun. 30, 2020

Condensed Financial Information Disclosure [Abstract]

Condensed Balance Sheet

Products Corporation and Subsidiaries Condensed Consolidating Balance Sheets
As of June 30, 2020
	Products Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents	$	271.9	$	5.9	$	60.7	$	—	$	338.5
Trade receivables, less allowances for doubtful accounts	73.5		59.4		155.4		—		288.3
Inventories	145.9		175.9		189.4		—		511.2
Prepaid expenses and other	224.8		38.1		44.9		—		307.8
Intercompany receivables	3,173.6		3,134.9		508.9		(6,817.4)		—
Investment in subsidiaries	1,574.2		14.8		—		(1,589.0)		—
Property, plant and equipment, net	189.0		73.8		102.7		—		365.5
Deferred income taxes	235.6		(53.6)		29.1		—		211.1
Goodwill	48.9		264.0		249.8		—		562.7
Intangible assets, net	(20.9)		333.8		128.7		—		441.6
Other assets	72.0		13.6		31.8		—		117.4
Total assets	$	5,988.5	$	4,060.6	$	1,501.4	$	(8,406.4)	$	3,144.1
LIABILITIES AND STOCKHOLDER’S DEFICIENCY
Short-term borrowings	$	—	$	—	$	2.6	$	—	$	2.6
Current portion of long-term debt	648.2		—		0.1		—		648.3
Accounts payable	107.6		47.6		69.4		—		224.6
Accrued expenses and other	257.7		(35.0)		158.9		—		381.6
Intercompany payables	3,317.2		2,954.4		545.7		(6,817.3)		—
Long-term debt	2,922.8		—		53.0		—		2,975.8
Other long-term liabilities	173.1		111.4		38.4		—		322.9
Total liabilities	7,426.6		3,078.4		868.1		(6,817.3)		4,555.8
Stockholder’s (deficiency) equity	(1,438.1)		982.2		633.3		(1,589.1)		(1,411.7)
Total liabilities and stockholder’s (deficiency) equity	$	5,988.5	$	4,060.6	$	1,501.4	$	(8,406.4)	$	3,144.1

Products Corporation and Subsidiaries Condensed Consolidating Balance Sheets
As of December 31, 2019
	Products Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
ASSETS
Cash and cash equivalents	$	0.8	$	6.4	$	97.1	$	—	$	104.3
Trade receivables, less allowances for doubtful accounts	95.5		92.3		235.6		—		423.4
Inventories	131.0		151.5		165.9		—		448.4
Prepaid expenses and other	219.7		26.4		46.5		—		292.6
Intercompany receivables	2,857.7		2,854.6		452.7		(6,165.0)		—
Investment in subsidiaries	1,598.3		30.7		—		(1,629.0)		—
Property, plant and equipment, net	208.7		89.5		110.4		—		408.6
Deferred income taxes	165.0		(37.8)		30.9		—		158.1
Goodwill	159.9		264.0		249.8		—		673.7
Intangible assets, net	13.0		346.9		130.8		—		490.7
Other assets	67.8		16.2		37.1		—		121.1
Total assets	$	5,517.4	$	3,840.7	$	1,556.8	$	(7,794.0)	$	3,120.9
LIABILITIES AND STOCKHOLDER’S DEFICIENCY
Short-term borrowings	$	—	$	—	$	2.2	$	—	$	2.2
Current portion of long-term debt	287.9		—		0.1		—		288.0
Accounts payable	108.4		39.9		103.5		—		251.8
Accrued expenses and other	124.1		70.0		224.1		—		418.2
Intercompany payables	3,030.3		2,668.7		466.0		(6,165.0)		—
Long-term debt	2,822.2		—		84.0		—		2,906.2
Other long-term liabilities	220.4		118.2		5.3		—		343.9
Total liabilities	6,593.3		2,896.8		885.2		(6,165.0)		4,210.3
Stockholder’s (deficiency) equity	(1,075.9)		943.9		671.6		(1,629.0)		(1,089.4)
Total liabilities and stockholder’s deficiency	$	5,517.4	$	3,840.7	$	1,556.8	$	(7,794.0)	$	3,120.9

Condensed Income Statement and Statement of Comprehensive Income

Products Corporation and Subsidiaries Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income
Three Months Ended June 30, 2020
	Products Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net Sales	$	93.8	$	78.2	$	175.6	$	—	$	347.6
Cost of sales	54.4		43.5		70.7		—		168.6
Gross profit	39.4		34.7		104.9		—		179.0
Selling, general and administrative expenses	58.8		45.2		90.4		—		194.4
Acquisition and integration costs	2.0		(0.5)		(0.3)		—		1.2
Restructuring charges and other, net	17.1		3.0		0.6		—		20.7
Impairment charges	19.8		—		—		—		19.8
Gain on divested assets	(0.2)		—		—		—		(0.2)
Operating (loss) income	(58.1)		(13.0)		14.2		—		(56.9)
Other (income) expense:
Intercompany interest, net	(0.3)		0.6		(0.3)		—		—
Interest expense	59.2		—		1.7		—		60.9
Amortization of debt issuance costs	6.0		—		—		—		6.0
(Gain) loss on early extinguishment of debt, net	(11.9)		—		—		—		(11.9)
Foreign currency losses (gains), net	6.2		0.5		(4.4)		—		2.3
Miscellaneous, net	24.9		(6.9)		2.6		—		20.6
Other expense (income), net	84.1		(5.8)		(0.4)		—		77.9
(Loss) income from continuing operations before income taxes	(142.2)		(7.2)		14.6		—		(134.8)
(Benefit from) provision for income taxes	(35.8)		21.6		4.6		—		(9.6)
(Loss) income from continuing operations, net of taxes	(106.4)		(28.8)		10.0		—		(125.2)
Equity in income (loss) of subsidiaries	4.7		(6.9)		—		2.2		—
Net (loss) income	$	(101.7)	$	(35.7)	$	10.0	$	2.2	$	(125.2)
Other comprehensive income (loss)	14.3		7.9		11.2		(19.1)		14.3
Total comprehensive (loss) income	$	(87.4)	$	(27.8)	$	21.2	$	(16.9)	$	(110.9)

Products Corporation and Subsidiaries Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income
Three Months Ended June 30, 2019
	Products Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net Sales	$	155.5	$	124.8	$	290.3	$	(0.4)	$	570.2
Cost of sales	72.2		64.1		108.0		(0.4)		243.9
Gross profit	83.3		60.7		182.3		—		326.3
Selling, general and administrative expenses	109.3		81.5		140.2		—		331.0
Restructuring charges and other, net	0.8		0.8		1.6		—		3.2
Operating (loss) income	(26.8)		(21.6)		40.5		—		(7.9)
Other (income) expense:
Intercompany interest, net	(1.1)		0.7		0.4		—		—
Interest expense	46.1		—		1.7		—		47.8
Amortization of debt issuance costs	3.5		—		—		—		3.5
Foreign currency losses, net	1.8		0.3		(0.9)		—		1.2
Miscellaneous, net	(10.1)		(12.7)		27.4		—		4.6
Other expense (income), net	40.2		(11.7)		28.6		—		57.1
(Loss) income from continuing operations before income taxes	(67.0)		(9.9)		11.9		—		(65.0)
(Benefit from) provision for income taxes	(3.6)		(0.1)		2.8		—		(0.9)
Loss (income) from continuing operations, net of taxes	(63.4)		(9.8)		9.1		—		(64.1)
Income from discontinued operations, net of taxes	—		—		1.6		—		1.6
Equity in income (loss) of subsidiaries	1.1		6.3		—		(7.4)		—
Net (loss) income	$	(62.3)	$	(3.5)	$	10.7	$	(7.4)	$	(62.5)
Other comprehensive income (loss)	5.3		(1.1)		(0.5)		1.6		5.3
Total comprehensive (loss) income	$	(57.0)	$	(4.6)	$	10.2	$	(5.8)	$	(57.2)

Products Corporation and Subsidiaries Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income
Six Months Ended June 30, 2020
	Products Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net Sales	$	210.2	$	190.7	$	399.8	$	(0.1)	$	800.6
Cost of sales	112.9		97.9		155.7		(0.1)		366.4
Gross profit	97.3		92.8		244.1		—		434.2
Selling, general and administrative expenses	163.2		116.1		202.5		—		481.8
Acquisition, integration and divestiture costs	3.2		—		0.1		—		3.3
Restructuring charges and other, net	40.7		4.3		0.5		—		45.5
Impairment charges	144.1		—		—		—		144.1
Loss on divested assets	0.6		—		—		—		0.6
Operating (loss) income	(254.5)		(27.6)		41.0		—		(241.1)
Other (income) expense:
Intercompany interest, net	(3.0)		1.1		1.9		—		—
Interest expense	105.7		—		3.6		—		109.3
Amortization of debt issuance costs	10.0		—		—		—		10.0
(Gain) loss on early extinguishment of debt, net	(11.9)		—		—		—		(11.9)
Foreign currency losses, net	0.6		2.4		15.9		—		18.9
Miscellaneous, net	0.9		(16.1)		31.7		—		16.5
Other expense (income), net	102.3		(12.6)		53.1		—		142.8
Loss from continuing operations before income taxes	(356.8)		(15.0)		(12.1)		—		(383.9)
Benefit from for income taxes	(52.1)		1.4		4.2		—		(46.5)
Loss from continuing operations, net of taxes	(304.7)		(16.4)		(16.3)		—		(337.4)
Equity in (loss) income of subsidiaries	(29.3)		(26.9)		—		56.2		—
Net (loss) income	$	(334.0)	$	(43.3)	$	(16.3)	$	56.2	$	(337.4)
Other comprehensive (loss) income	11.6		14.4		2.4		(16.8)		11.6
Total comprehensive (loss) income	$	(322.4)	$	(28.9)	$	(13.9)	$	39.4	$	(325.8)

Products Corporation and Subsidiaries Condensed Consolidating Statement of Operations and Comprehensive (Loss) Income
Six Months Ended June 30, 2019
	Products Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
Net Sales	$	311.0	$	254.1	$	561.5	$	(3.2)	$	1,123.4
Cost of sales	140.2		129.2		215.5		(3.2)		481.7
Gross profit	170.8		124.9		346.0		—		641.7
Selling, general and administrative expenses	239.0		156.6		266.2		—		661.8
Acquisition, integration and divestiture costs	0.5		0.1		—		—		0.6
Restructuring charges and other, net	2.4		2.9		3.4		—		8.7
Operating (loss) income	(71.1)		(34.7)		76.4		—		(29.4)
Other (income) expenses:
Intercompany interest, net	(2.4)		1.4		1.0		—		—
Interest expense	92.0		—		3.5		—		95.5
Amortization of debt issuance costs	6.7		—		—		—		6.7
Foreign currency losses, net	0.3		0.3		0.8		—		1.4
Miscellaneous, net	(18.0)		(26.2)		50.1		—		5.9
Other expense (income), net	78.6		(24.5)		55.4		—		109.5
(Loss) income from continuing operations before income taxes	(149.7)		(10.2)		21.0		—		(138.9)
(Benefit from) provision for income taxes	(5.4)		0.4		4.4		—		(0.6)
(Loss) income from continuing operations, net of taxes	(144.3)		(10.6)		16.6		—		(138.3)
Income from discontinued operations, net of taxes	—		—		2.3		—		2.3
Equity in income (loss) of subsidiaries	8.5		11.7		—		(20.2)		—
Net (loss) income	$	(135.8)	$	1.1	$	18.9	$	(20.2)	$	(136.0)
Other comprehensive income (loss)	6.2		(1.2)		0.1		1.1		6.2
Total comprehensive (loss) income	$	(129.6)	$	(0.1)	$	19.0	$	(19.1)	$	(129.8)

Condensed Cash Flow Statement

Products Corporation and Subsidiaries Condensed Consolidating Statements of Cash Flows
Six Months Ended June 30, 2020
	Products Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	(148.3)	$	14.6	$	(30.5)	$	—	$	(164.2)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash (used in) provided by investing activities	(2.7)		—		—		—		(2.7)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net decrease in short-term borrowings and overdraft	(1.3)		(6.2)		0.5		—		(7.0)
Borrowings under the 2020 BrandCo Facilities	880.0		—		—		—		880.0
Repurchases of the 5.75% Senior Notes	(99.6)		—		—		—		(99.6)
Net borrowings under the Amended 2016 Revolving Credit Facility	(22.9)		—		—		—		(22.9)
Repayment of the 2019 Term Loan Facility	(200.0)		—		—		—		(200.0)
Repayments under the 2018 Foreign Asset-Based Term Loan	(31.4)				—		—		(31.4)
Repayments under the 2016 Term Loan Facility	(6.9)		—		—		—		(6.9)
Payment of financing costs	(101.2)		—		—		—		(101.2)
Tax withholdings related to net share settlements of restricted stock and RSUs	(1.6)		—		—		—		(1.6)
Other financing activities	(1.0)		—		—		—		(1.0)
Net cash provided by (used in) financing activities	414.1		(6.2)		0.5		—		408.4
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—		(9.0)		6.9		—		(2.1)
Net increase (decrease) in cash, cash equivalents and restricted cash	263.1		(0.6)		(23.1)		—		239.4
Cash, cash equivalents and restricted cash at beginning of period	$	1.0	$	6.4	$	97.2	$	—	$	104.5
Cash, cash equivalents and restricted cash at end of period	$	264.1	$	5.8	$	74.1	$	—	$	343.9

Products Corporation and Subsidiaries Condensed Consolidating Statements of Cash Flows
Six Months Ended June 30, 2019
	Products Corporation		Guarantor Subsidiaries		Non-Guarantor Subsidiaries		Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	(36.8)	$	4.8	$	(9.2)	$	—	$	(41.2)
CASH FLOWS FROM INVESTING ACTIVITIES:
Net cash used in investing activities	(6.3)		(1.2)		(4.7)		—		(12.2)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net decrease in short-term borrowings and overdraft	(9.7)		(6.6)		(2.5)		—		(18.8)
Repayments under the 2016 Term Loan Facility	(9.0)		—		—		—		(9.0)
Net borrowings under the Amended 2016 Revolving Credit Facility	59.9		—		—		—		59.9
Payments of financing costs	(0.8)		—		(0.6)		—		(1.4)
Tax withholdings related to net share settlements of restricted stock and RSUs	(1.6)		—		—		—		(1.6)
Other financing activities	(0.4)		—		(0.1)		—		(0.5)
Net cash provided by financing activities	38.4		(6.6)		(3.2)		—		28.6
Effect of exchange rate changes on cash, cash equivalents and restricted cash	—		0.1		0.4		—		0.5
Net decrease in cash, cash equivalents and restricted cash	(4.7)		(2.9)		(16.7)		—		(24.3)
Cash, cash equivalents and restricted cash at beginning of period	$	7.2	$	6.6	$	73.7	$	—	87.5
Cash, cash equivalents and restricted cash at end of period	$	2.5	$	3.7	$	57.0	$	—	$	63.2