Segment Data And Related Information

6 Months Ended

Dec. 31, 2013

Segment Data And Related Information [Abstract]

Segment Data And Related Information

NOTE 16. 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.

     At December 31, 2013, the Company's operations were organized into the following two operating segments, which also comprise its 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 and spas, which are owned and operated by a third party licensee in which the Company has a minority investment.

· International - The International segment sells a portfolio of owned and licensed brands, including 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 2013 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, 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 by operating segment for the three and six months ended December 31, 2013 and 2012:

(Amounts in thousands)		Three Months Ended						Six Months Ended
		December 31,		December 31,				December 31,		December 31,
		2013			2012			2013		2012
Segment Net Sales:
North America	$	269,647		$	311,077		$	494,306		$	542,634
International		148,490			156,842			267,440			269,826
Total	$	418,137		$	467,919		$	761,746		$	812,460
Segment Profit:
North America	$	33,960		$	53,542		$	62,847		$	90,350
International		14,822			23,508			6,880			18,270
Total	$	48,782		$	77,050		$	69,727		$	108,620
Reconciliation:
Segment Profit	$	48,782		$	77,050		$	69,727		$	108,620
Less:
Depreciation and Amortization		13,124			10,859			25,653			21,519
Interest Expense, net		5,734			6,424			11,766			12,622
Consolidation and Elimination
Adjustments		630			415			(1,363	)		868
Unallocated Corporate Expenses		(15,746	) (1)		1,935	(2)		(13,371	) (1)		13,529	(2)
Income Before Income Taxes	$	45,040		$	57,417		$	47,042		$	60,082

(1) Amounts for the three months ended December 31, 2013, include a credit of $17.2 million for the complete reversal of the remaining balance of the contingent liability for potential payments to Give Back Brands LLC based on the Company's determination that it is not probable that the performance targets for the fiscal years 2014 and 2015 will be met, and $0.4 million of restructuring expenses and $1.0 million of related transition costs incurred with respect to sales and other positions across various business units that are being eliminated to derive expense savings and additional operating efficiencies. Amounts for the six months ended December 31, 2013, include a credit of $17.2 million for the complete reversal of the remaining balance of the contingent liability for potential payments to Give Back Brands LLC based on the Company's determination that it is not probable that the performance targets for the fiscal years 2014 and 2015 will be met, and $2.2 million of restructuring expenses and $1.6 million of related transition costs incurred with respect to sales and other positions across various business units that are being eliminated to derive expense savings and additional operating efficiencies.

(2) Amounts for the three months ended December 31, 2012, include $1.9 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. Amounts for the six months ended December 31, 2012, include $13.5 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 and expenses.