Business And Basis Of Presentation

9 Months Ended

Mar. 31, 2014

Business And Basis Of Presentation [Abstract]

Business And Basis Of Presentation

NOTE 1. BUSINESS AND BASIS OF PRESENTATION

     Elizabeth Arden, Inc. (the "Company" or "our") is a global prestige beauty products company that sells fragrances, skin care and cosmetic products to retailers in the United States and approximately 120 countries internationally.

     The unaudited consolidated financial statements include the accounts of the Company's wholly-owned domestic and international subsidiaries, as well as a variable interest entity ("VIE") of which the Company is the primary beneficiary in accordance with consolidation accounting guidance. See Note 5 for information on the consolidated VIE. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited consolidated financial statements have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the "Commission") for interim financial information. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States for complete financial statement presentation and should be read in conjunction with the audited consolidated financial statements and related footnotes included in the Company's Annual Report on Form 10-K for the fiscal year ended June 30, 2013 (the "2013 Annual Report"), filed with the Commission.

     During the three and nine months ended March 31, 2014, the Company recorded two out-of-period adjustments to correct errors for deferred taxes and taxes recoverable in one of our foreign affiliates related to prior interim periods commencing with the interim period ended March 31, 2013, and the annual period for the twelve months ended June 30, 2013. For the three months ended March 31, 2014, loss before income taxes increased by $1.7 million, benefit from income taxes increased by $1.1 million, and net loss attributable to Elizabeth Arden shareholders increased by $0.6 million. For the nine months ended March 31, 2014, income before income taxes decreased by $0.5 million, income tax expense decreased by $0.8 million, and net income attributable to Elizabeth Arden shareholders increased by $0.3 million. The Company evaluated these errors and concluded that such out of period adjustments were not material to the current or prior period consolidated financial statements.

     The consolidated balance sheet of the Company as of June 30, 2013, is derived from the financial statements included in the 2013 Annual Report but does not include all disclosures required by accounting principles generally accepted in the United States. The other consolidated financial statements presented in this quarterly report are unaudited but include all adjustments that are of a normal recurring nature that management considers necessary for the fair statement of the results for the interim periods. Results for interim periods are not necessarily indicative of results for the full fiscal year.