Segment Data And Related Information

9 Months Ended

Mar. 31, 2012

Segment Data And Related Information [Abstract]

Segment Data And Related Information

NOTE 13. SEGMENT DATA AND RELATED INFORMATION

     Operating segments, as defined by Codification Topic 280, Segment Reporting, include components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (the "Chief Executive") in deciding how to allocate resources and in assessing performance. As a result of the similarities in the procurement, marketing and distribution processes for all of the Company's products, much of the information provided in the consolidated financial statements is similar to, or the same as, that reviewed on a regular basis by the Chief Executive.

     The Company's operations are organized into the following two operating segments, which also comprise the Company's reportable segments:

• North America - The North America segment sells the Company's portfolio of owned, licensed and distributed brands, including the Elizabeth Arden products, to department stores, mass retailers and distributors in the United States, Canada and Puerto Rico, and also includes the Company's direct to consumer business, which is composed of the Elizabeth Arden branded retail outlet stores and the Company's global e-commerce business. This segment also sells the Elizabeth Arden products through the Red Door beauty salons, which are owned and operated by an unrelated third party that licenses the Elizabeth Arden and Red Door trademarks from the Company for use in its salons.

• International - The International segment sells the Company's portfolio of owned and licensed brands, including the Elizabeth Arden products, in approximately 100 countries outside of North America to perfumeries, boutiques, department stores, travel retail outlets and distributors.

     The Chief Executive evaluates segment profit based upon income from operations, which represents earnings before income taxes, interest expense and depreciation and amortization charges. The accounting policies for each of the operating segments are the same as those described in the 2011 Annual Report under Note 1 -- "General Information and Summary of Significant Accounting Policies." The assets and liabilities of the Company are managed centrally and are reported internally in the same manner as the consolidated financial statements; thus, no additional information regarding assets and liabilities of the Company's operating segments is produced for the Chief Executive or included herein.

     Segment profit (loss) excludes depreciation and amortization, interest expense, consolidation and elimination adjustments and unallocated corporate expenses, which are shown in the table reconciling segment profit (loss) to consolidated income (loss) before income taxes. Included in unallocated corporate expenses are (i) restructuring charges that are related to an announced plan, (ii) costs related to the Company's Global Efficiency Re-engineering initiative, which was substantially completed in fiscal 2011 (the "Initiative"), and (iii) restructuring costs for corporate operations. These expenses are recorded in unallocated corporate expenses as these items are centrally directed and controlled and are not included in internal measures of segment operating performance. The Company does not have any intersegment sales. The following table is a comparative summary of the Company's net sales and segment profit (loss) by operating segment for the three and nine months ended March 31, 2012 and 2011:

(Amounts in thousands)	Three Months Ended						Nine Months Ended
	March 31, 2012			March 31, 2011			March 31, 2012		March 31, 2011
Segment Net Sales:
North America	$	145,154		$	142,755		$	625,215	$	607,854
International		94,125			88,541			347,524		313,896
Total	$	239,279		$	231,296		$	972,739	$	921,750
Segment Profit (Loss):
North America	$	20,818		$	18,112		$	105,133	$	83,160
International		(4,932	)		(5,742	)		8,975		9,064
Total	$	15,886		$	12,370		$	114,108	$	92,224
Reconciliation:
Segment Profit	$	15,886		$	12,370		$	114,108	$	92,224
Less:
Depreciation and Amortization		8,551			7,268			25,283		22,307
Interest Expense, net		5,291			5,434			16,339		16,317
Consolidation and Elimination Adjustments		(30	)		(414	)		2,397		593
Unallocated Corporate Expenses		-			6,468	(1)		-		7,637	(2)
Income (Loss) Before Income Taxes	$	2,074		$	(6,386	)	$	70,089	$	45,370

(1) Amount for the three months ended March 31, 2011, represents debt extinguishment charges.

(2) Amounts for the nine months ended March 31, 2011, include (i) $0.3 million of restructuring expenses related to the Initiative, (ii) $0.5 million of restructuring expenses for corporate operations, not related to the Initiative, (iii) $0.3 million of expenses related to the implementation of an Oracle accounting and order processing system, and (iv) $6.5 million of debt extinguishment charges.