Segment Data And Related Information

3 Months Ended

Sep. 30, 2012

Segment Data And Related Information [Abstract]

Segment Data And Related Information

NOTE 13.    SEGMENT DATA AND RELATED INFORMATION

     Reportable 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.

• 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 and spas, which are owned and operated by a third party, in which the Company has a minority investment, that licenses the Elizabeth Arden and Red Door trademarks from the Company for use in its salons and spas.

• International - The International segment sells the Company's portfolio of owned and licensed brands, including the Elizabeth Arden products, to perfumeries, boutiques, department stores, travel retail outlets and distributors in approximately 120 countries outside of North America.

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 reportable segments are the same as those described in the Company's 2012 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 reportable segments is produced for the Chief Executive or included herein.

     Segment profit excludes depreciation and amortization, interest expense, debt extinguishment charges, consolidation and elimination adjustments and unallocated corporate expenses, which are shown in the table reconciling segment profit to consolidated income before income taxes. Included in unallocated corporate expenses are (i) restructuring charges that are related to an announced plan, (ii) restructuring costs for corporate operations, and (iii) acquisition-related costs including transition costs. 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 months ended September 30, 2012 and 2011

(Amounts in thousands)		Three Months Ended
		September 30,		September 30,
		2012		2011
Segment Net Sales:
North America	$	231,557		$	192,966
International		112,984			110,568
Total	$	344,541		$	303,534
Segment Profit (Loss):
North America	$	36,808		$	30,350
International		(5,238	)		(4,296	)
Total	$	31,570		$	26,054
Reconciliation:
Segment Profit	$	31,570		$	26,054
Less:
Depreciation and Amortization		10,660			8,061
Interest Expense, net		6,198			5,262
Consolidation and Elimination Adjustments		453			722
Unallocated Corporate Expenses		11,594	(1)		-
Income Before Income Taxes	$	2,665		$	12,009

(1) Amounts for the three months ended September 30, 2012, include $11.3 million of inventory–related costs recorded in cost of sales primarily for inventory purchased by the Company from New Wave Fragrances LLC and Give Back Brands LLC prior to the acquisition of licenses and other assets from those companies, and other transition costs. In addition, included in selling, general and administrative expenses are $0.3 million in transition expenses associated with such acquisitions.