REORGANIZATION ITEMS, NET (Tables)

12 Months Ended

Dec. 31, 2022

Liabilities subject to compromise at December 31, 2022 consisted of the following:


	December 31,
	2022
Accounts payable	$	81.6
Accrued expenses	148.6
Other liabilities	96.0
Debt subject to compromise	3,385.0

Total liabilities subject to compromise	$	3,711.2

Reorganization items incurred as a result of the Chapter 11 Cases are presented separately in the accompanying statements of operations for the year ended December 31, 2022 and were as follows:


	Year Ended
	December 31, 2022
Professional fees	$	158.1
Write off of deferred financing costs and discount on debt subject to compromise	124.8
Adjustment to estimated allowed claim amount	98.6
Bankruptcy related employee compensation programs	21.1
DIP facilities financing costs	18.5
Other	4.8
Gain on settlement of pre-petition accounts payable	(9.9)
Reorganization items, net	$	416.0

The financial statements below represent the condensed combined financial statements of the Debtors as of December 31, 2022 and December 31, 2021 and for each of the years ended December 31, 2022 and 2021.

REVLON, INC. AND SUBSIDIARIES

(DEBTOR-IN-POSSESSION)

CONSOLIDATED BALANCE SHEETS

(dollars in millions, except share and per share amounts)


	December 31, 2022		December 31, 2021

ASSETS
Current assets:
Cash and cash equivalents	$	163.7	$	17.9
Trade receivables (net of allowance for doubtful accounts of $0.9 and $2.3, respectively)	220.6		258.7
Trade receivables from non-debtor subsidiaries	493.1		400.4
Inventories, net	302.4		261.8
Prepaid expenses and other assets	93.2		74.5
Total current assets	1,273.0		1,013.3
Property, plant and equipment (net of accumulated depreciation of $439.6 and $426.0, respectively)	178.4		219.4
Deferred income taxes	4.7		17.5
Goodwill	540.0		540.0
Intangible assets (net of accumulated amortization and impairment of $232.5 and $274.4, respectively)	272.6		320.8
Investment in subsidiaries	877.7		874.5
Due from affiliates	269.1		249.8
Other assets	76.0		74.8
Total assets	$	3,491.5	$	3,310.1

LIABILITIES AND STOCKHOLDERS’ DEFICIENCY
Current liabilities:
Short-term borrowings	$	—	$	—
Current portion of long-term debt	746.8		137.1
Accounts payable	52.3		134.7
Accounts payable to non-debtors	27.3		234.5
Accrued expenses and other current liabilities	242.3		267.1
Total current liabilities	$	1,068.7	$	773.4
Long-term debt	—		3,234.2
Long-term pension and other post-retirement plan liabilities	81.0		141.3
Other long-term liabilities	20.5		337.9
Liabilities subject to compromise	4,209.5		—
Total liabilities	5,379.7		4,486.8
Stockholder’s (deficiency) equity	(1,888.2)		(1,176.7)
Total liabilities and stockholders’ deficiency	$	3,491.5	$	3,310.1

REVLON, INC. AND SUBSIDIARIES

(DEBTOR-IN-POSSESSION)

CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

(dollars in millions, except share and per share amounts)


	Year Ended December 31,

		2022		2021

Net sales		$	1,075.3	$	1,156.9
Cost of sales		501.3		523.3
Gross profit		574.0		633.6
Selling, general and administrative expenses		647.7		660.7
Acquisition, integration and divestiture costs		0.8		2.3
Restructuring charges and other, net		3.7		18.5
Impairment charges		20.5		—
(Gain) loss on divested assets		0.6		0.7
Operating loss		(99.3)		(48.6)
Other expenses:
Interest expense, net		235.3		237.6

Amortization of debt issuance costs		16.8		37.4

Foreign currency losses, net		9.5		(3.9)
Miscellaneous, net		9.1		(393.5)
Reorganization items, net		416.0		—
Equity in net loss of subsidiary		(123.3)		(100.4)
Other expenses		563.4		(222.8)
(Loss) income from operations before income taxes		(662.7)		174.2
Provision for income taxes		15.1		(1.7)


Net loss		$	(677.8)	$	175.9
Other comprehensive income, net		16.7		40.4
Total comprehensive (loss) income		$	(661.1)	$	216.3

REVLON, INC. AND SUBSIDIARIES

(DEBTOR-IN-POSSESSION)

CONSOLIDATED STATEMENTS OF CASH FLOWS

(dollars in millions)


	Year Ended December 31,
	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES:


























Net cash used in operating activities	$	(310.6)	$	135.0
CASH FLOWS FROM INVESTING ACTIVITIES:




Net cash used in investing activities	(7.9)		(8.1)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net decrease in short-term borrowings and overdraft	(1.9)		(11.9)
Borrowings on term loans	—		230.0
Repayments on term loans	(13.6)		(138.4)


Net (repayments) borrowings under the revolving credit facilities	(0.6)		(29.3)
Borrowings on DIP Term Loan Facility	575.0		—
Repayments on Tranche A DIP ABL Facility	(67.2)		—





Payment of financing costs	(20.5)		(11.6)

Tax withholdings related to net share settlements of restricted stock and RSUs	(3.3)		(2.4)

Cash transfer to non-debtor affiliates	—		(155.8)
Other financing activities	(0.2)		(0.3)
Net cash provided by financing activities	467.7		(119.7)
Effect of exchange rate changes on cash, cash equivalents and restricted cash	(0.7)		(0.1)
Net increase in cash, cash equivalents and restricted cash	148.5		7.1
Cash, cash equivalents and restricted cash at beginning of period	17.9		10.8
Cash, cash equivalents and restricted cash at end of period (a)	$	166.4	$	17.9

(a)These amounts include restricted cash of $2.7 million and nil as of December 31, 2022 and 2021, respectively. The balance is included within prepaid expenses and other current assets and other assets in the Company's Consolidated Balance Sheets as of December 31, 2022.