Guarantor Financial Information

6 Months Ended

Jun. 30, 2011

Guarantor Financial Information [Abstract]

Guarantor Financial Information

(12)   Guarantor Financial Information

Products Corporation’s 93/4% Senior Secured Notes are fully and unconditionally guaranteed on a senior secured basis by Revlon, Inc. and Products Corporation’s domestic subsidiaries (other than certain immaterial subsidiaries) that guarantee Products Corporation’s obligations under its 2011 Credit Agreements (the “Guarantor Subsidiaries”).

The following Condensed Consolidating Financial Statements present the financial information as of June 30, 2011 and December 31, 2010, and for the three and six months ended June 30, 2011 and 2010 for (i) Products Corporation on a stand-alone basis; (ii) the Guarantor Subsidiaries on a stand-alone basis; (iii) the subsidiaries of Products Corporation that do not guarantee Products Corporation’s 93/4% Senior Secured Notes (the “Non-Guarantor Subsidiaries”) on a stand-alone basis; and (iv) Products Corporation, the Guarantor Subsidiaries and the Non-Guarantor Subsidiaries on a consolidated basis. The Condensed Consolidating Financial Statements are presented on the equity method, under which the investments in subsidiaries are recorded at cost and adjusted for the applicable share of the subsidiary’s cumulative results of operations, capital contributions, distributions and other equity changes. The principal elimination entries eliminate investments in subsidiaries and intercompany balances and transactions.

Consolidating Condensed Balance Sheets
As of June 30, 2011

	Products			Guarantor			Non-Guarantor
	Corporation			Subsidiaries			Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	0.7		$	0.9		$	43.3		$	—		$	44.9
Trade receivables, less allowances for doubtful accounts		77.8			20.2			87.7			—			185.7
Inventories		86.0			9.0			46.8			—			141.8
Deferred income taxes — current		35.7			—			5.7			—			41.4
Prepaid expenses and other		75.4			5.3			28.8			—			109.5
Intercompany receivables		916.1			447.3			339.8			(1,703.2	)		—
Investment in subsidiaries		(196.7	)		(195.8	)		—			392.5			—
Property, plant and equipment, net		86.0			0.8			14.7			—			101.5
Deferred income taxes — noncurrent		206.5			—			2.7			—			209.2
Goodwill, net		150.6			41.4			2.1			—			194.1
Other assets		52.6			25.8			33.7			—			112.1
Total assets	$	1,490.7		$	354.9		$	605.3		$	(1,310.7	)	$	1,140.2
LIABILITIES AND STOCKHOLDER’S DEFICIENCY
Short-term borrowings	$	—		$	5.8		$	3.2		$	—		$	9.0
Current portion of long-term debt		18.0			—			—			—			18.0
Accounts payable		56.5			9.0			35.6			—			101.1
Accrued expenses and other		117.6			9.0			62.1			—			188.7
Intercompany payables		529.7			625.1			548.4			(1,703.2	)		—
Long-term debt		1,110.1			—			—			—			1,110.1
Long-term debt — affiliates		107.0			—			—			—			107.0
Other long-term liabilities		185.8			7.8			46.7			—			240.3
Total liabilities		2,124.7			656.7			696.0			(1,703.2	)		1,774.2
Stockholder’s deficiency		(634.0	)		(301.8	)		(90.7	)		392.5			(634.0	)
Total liabilities and stockholder’s deficiency	$	1,490.7		$	354.9		$	605.3		$	(1,310.7	)	$	1,140.2

Consolidating Condensed Balance Sheets
As of December 31, 2010

	Products			Guarantor			Non-Guarantor
	Corporation			Subsidiaries			Subsidiaries			Eliminations			Consolidated
ASSETS
Cash and cash equivalents	$	20.5		$	0.1		$	56.1		$	—		$	76.7
Trade receivables, less allowances for doubtful accounts		91.0			14.9			91.6			—			197.5
Inventories		76.6			2.4			36.0			—			115.0
Deferred income taxes — current		34.4			—			5.9			—			40.3
Prepaid expenses and other		72.5			3.2			22.4			—			98.1
Intercompany receivables		895.1			432.0			331.1			(1,658.2	)		—
Investment in subsidiaries		(229.8	)		(184.7	)		—			414.5			—
Property, plant and equipment, net		89.4			0.6			16.2			—			106.2
Deferred income taxes — noncurrent		214.0			—			2.6			—			216.6
Goodwill, net		150.6			30.0			2.1			—			182.7
Other assets		55.8			4.2			27.3			—			87.3
Total assets	$	1,470.1		$	302.7		$	591.3		$	(1,243.7	)	$	1,120.4
LIABILITIES AND STOCKHOLDER’S DEFICIENCY
Short-term borrowings	$	—		$	1.8		$	1.9		$	—		$	3.7
Current portion of long-term debt		8.0			—			—			—			8.0
Accounts payable		54.3			4.4			25.8			—			84.5
Accrued expenses and other		140.1			9.0			67.1			—			216.2
Intercompany payables		516.4			613.4			528.4			(1,658.2	)		—
Long-term debt		1,100.9			—			—			—			1,100.9
Long-term debt — affiliates		107.0			—			—			—			107.0
Other long-term liabilities		200.5			9.1			47.6			—			257.2
Total liabilities		2,127.2			637.7			670.8			(1,658.2	)		1,777.5
Stockholder’s deficiency		(657.1	)		(335.0	)		(79.5	)		414.5			(657.1	)
Total liabilities and stockholder’s deficiency	$	1,470.1		$	302.7		$	591.3		$	(1,243.7	)	$	1,120.4

Consolidating Condensed Statement of Operations
For the Three Months Ended June 30, 2011

	Products			Guarantor			Non-Guarantor
	Corporation			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net Sales	$	227.8		$	25.8		$	144.2		$	(46.6	)	$	351.2
Cost of Sales		102.3			11.8			54.4			(46.6	)		121.9
Gross profit		125.5			14.0			89.8			—			229.3
Selling, general and administrative expenses		100.1			10.6			68.6			—			179.3
Operating income		25.4			3.4			21.2			—			50.0
Other expenses (income):
Intercompany interest, net		(0.1	)		(0.2	)		1.9			—			1.6
Interest expense		21.6			—			0.1			—			21.7
Amortization of debt issuance costs		1.0			—			—			—			1.0
Loss on early extinguishment of debt		11.3			—			—			—			11.3
Foreign currency losses(gains), net		(1.5	)		0.1			4.4			—			3.0
Miscellaneous, net		(25.3	)		11.8			13.8			—			0.3
Other expenses, net		7.0			11.7			20.2			—			38.9
Income (loss) from continuing operations before income taxes		18.4			(8.3	)		1.0			—			11.1
Provision for income taxes		1.3			1.0			1.6			—			3.9
Income (loss) from continuing operations		17.1			(9.3	)		(0.6	)		—			7.2
Income from discontinued operations, net of taxes		0.6			—			—			—			0.6
Equity in (loss) income of subsidiaries		(9.9	)		(3.2	)		—			13.1			0.0
Net income (loss)	$	7.8		$	(12.5	)	$	(0.6	)	$	13.1		$	7.8

Consolidating Condensed Statement of Operations
For the Three Months Ended June 30, 2010

	Products			Guarantor			Non-Guarantor
	Corporation			Subsidiaries			Subsidiaries			Eliminations			Consolidated
Net Sales	$	214.8		$	16.9		$	135.7		$	(39.7	)	$	327.7
Cost of Sales		89.0			7.1			50.6			(39.7	)		107.0
Gross profit		125.8			9.8			85.1			—			220.7
Selling, general and administrative expenses		104.9			7.2			59.3			—			171.4
Operating income		20.9			2.6			25.8			—			49.3
Other expenses (income):
Intercompany interest, net		0.7			(0.2	)		1.1			—			1.6
Interest expense		22.8			—			0.1			—			22.9
Amortization of debt issuance costs		1.0			—			—			—			1.0
Foreign currency (gains) losses, net		0.2			0.2			(0.3	)		—			0.1
Miscellaneous, net		(21.9	)		10.9			11.5			—			0.5
Other expenses (income), net		2.8			10.9			12.4			—			26.1
Income (loss) from continuing operations before income taxes		18.1			(8.3	)		13.4			—			23.2
(Benefit from) provision for income taxes		(1.3	)		2.0			4.1			—			4.8
Income (loss) from continuing operations		19.4			(10.3	)		9.3			—			18.4
Income from discontinued operations, net of taxes		0.4			—			—			—			0.4
Equity in income (loss) of subsidiaries		(1.0	)		2.6			—			(1.6	)		—
Net income (loss)	$	18.8		$	(7.7	)	$	9.3		$	(1.6	)	$	18.8

Consolidating Condensed Statement of Operations
For the Six Months Ended June 30, 2011

	Products			Guarantor			Non-Guarantor
	Corporation			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Net Sales	$	447.0		$	43.7		$	280.7	$	(87.0	)	$	684.4
Cost of Sales		196.7			19.9			105.6		(87.0	)		235.2
Gross profit		250.3			23.8			175.1		—			449.2
Selling, general and administrative expenses		203.9			19.6			128.9		—			352.4
Operating income		46.4			4.2			46.2		—			96.8
Other expenses (income):
Intercompany interest, net		(0.1	)		(0.5	)		3.7		—			3.1
Interest expense		44.0			0.1			0.2		—			44.3
Amortization of debt issuance costs		2.1			—			—		—			2.1
Loss on early extinguishment of debt, net		11.3			—			—		—			11.3
Foreign currency (gains) losses, net		(1.2	)		0.4			4.1		—			3.3
Miscellaneous, net		(34.6	)		7.2			28.4		—			1.0
Other expenses, net		21.5			7.2			36.4		—			65.1
Income (loss) from continuing operations before income taxes		24.9			(3.0	)		9.8		—			31.7
Provision for income taxes		4.1			2.4			6.0		—			12.5
Income (loss) from continuing operations		20.8			(5.4	)		3.8		—			19.2
Income from discontinued operations, net of taxes		0.6			—			—		—			0.6
Equity in (loss) income of subsidiaries		(1.6	)		(1.1	)		—		2.7			—
Net income (loss)	$	19.8		$	(6.5	)	$	3.8	$	2.7		$	19.8

Consolidating Condensed Statement of Operations
For the Six Months Ended June 30, 2010

	Products			Guarantor			Non-Guarantor
	Corporation			Subsidiaries			Subsidiaries		Eliminations			Consolidated
Net Sales	$	423.3		$	30.2		$	251.5	$	(71.8	)	$	633.2
Cost of Sales		179.6			13.1			94.8		(71.8	)		215.7
Gross profit		243.7			17.1			156.7		—			417.5
Selling, general and administrative expenses		195.9			16.4			108.8		—			321.1
Operating income		47.8			0.7			47.9		—			96.4
Other expenses (income):
Intercompany interest, net		1.5			(0.6	)		2.2		—			3.1
Interest expense		44.1			0.1			0.1		—			44.3
Amortization of debt issuance costs		2.4			—			—		—			2.4
Loss on early extinguishment of debt, net		9.7			—			—		—			9.7
Foreign currency (gains) losses, net		(4.3	)		(0.2	)		8.4		—			3.9
Miscellaneous, net		(28.9	)		7.4			22.1		—			0.6
Other expenses, net		24.5			6.7			32.8		—			64.0
Income (loss) from continuing operations before income taxes		23.3			(6.0	)		15.1		—			32.4
(Benefit from) provision for income taxes		(1.3	)		2.7			8.4		—			9.8
Income (loss) from continuing operations		24.6			(8.7	)		6.7		—			22.6
Income from discontinued operations, net of taxes		0.4			—			—		—			0.4
Equity in (loss) income of subsidiaries		(2.0	)		(1.4	)		—		3.4			—
Net income (loss)	$	23.0		$	(10.1	)	$	6.7	$	3.4		$	23.0

Consolidating Condensed Statement of Cash Flow
For the Six Months Ended June 30, 2011

	Products			Guarantor			Non-Guarantor
	Corporation			Subsidiaries			Subsidiaries			Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash (used in) provided by operating activities	$	(21.2	)	$	35.8		$	(11.3	)	$	—	$	3.3
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(4.8	)		(0.1	)		(1.0	)		—		(5.9	)
Acquisitions		—			(39.0	)		—			—		(39.0	)
Proceeds from sales of certain assets		0.1			—			—			—		0.1
Net cash used in investing activities		(4.7	)		(39.1	)		(1.0	)		—		(44.8	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in short-term borrowings and overdraft		(1.7	)		4.1			1.2			—		3.6
Borrowings under the 2011 Revolving Credit Facility		10.0			—			—			—		10.0
Repayments under the 2010 Term Loan Facility		(794.0	)		—			—			—		(794.0	)
Borrowings under the 2011 Term Loan Facility		796.0			—			—			—		796.0
Payment of financing costs		(3.9	)		—			—			—		(3.9	)
Other financing activities		(0.3	)		—			(0.4	)		—		(0.7	)
Net cash provided by financing activities		6.1			4.1			0.8			—		11.0
Effect of exchange rate changes on cash and cash equivalents		—			—			(1.3	)		—		(1.3	)
Net (decrease) increase in cash and cash equivalents		(19.8	)		0.8			(12.8	)		—		(31.8	)
Cash and cash equivalents at beginning of period		20.5			0.1			56.1			—		76.7
Cash and cash equivalents at end of period	$	0.7		$	0.9		$	43.3		$	—	$	44.9

Consolidating Condensed Statement of Cash Flow
For the Six Months Ended June 30, 2010

	Products			Guarantor			Non-Guarantor
	Corporation			Subsidiaries			Subsidiaries			Eliminations		Consolidated
CASH FLOWS FROM OPERATING ACTIVITIES:
Net cash provided by (used in) operating activities	$	37.2		$	(3.9	)	$	6.7		$	—	$	40.0
CASH FLOWS FROM INVESTING ACTIVITIES:
Capital expenditures		(6.5	)		—			(0.7	)		—		(7.2	)
Proceeds from sales of certain assets		0.1			—			0.1			—		0.2
Net cash (used in) provided by investing activities		(6.4	)		—			(0.6	)		—		(7.0	)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net (decrease) increase in short-term borrowings and overdraft		(5.0	)		3.6			1.1			—		(0.3	)
Repayments under the 2006 Term Loan Facility		(815.0	)		—			—			—		(815.0	)
Borrowings under the 2010 Term Loan Facility		786.0			—			—			—		786.0
Repayments under the 2010 Term Loan Facility		(2.0	)										(2.0	)
Payment of financing costs		(16.6	)		—			—			—		(16.6	)
Other financing activities		(0.2	)		—			(0.2	)		—		(0.4	)
Net cash (used in) provided by financing activities		(52.8	)		3.6			0.9			—		(48.3	)
Effect of exchange rate changes on cash and cash equivalents		—			—			(0.6	)		—		(0.6	)
Net (decrease) increase in cash and cash equivalents		(22.0	)		(0.3	)		6.4			—		(15.9	)
Cash and cash equivalents at beginning of period		27.4			0.4			26.7			—		54.5
Cash and cash equivalents at end of period	$	5.4		$	0.1		$	33.1		$	—	$	38.6