Business And Basis Of Presentation

9 Months Ended

Mar. 31, 2015

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 variable interest entities ("VIEs") of which the Company is the primary beneficiary in accordance with consolidation accounting guidance. See Note 5 for information on the consolidated VIEs. 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, 2014 (the "2014 Annual Report"), filed with the Commission.

     The consolidated balance sheet of the Company as of June 30, 2014, is derived from the financial statements included in the 2014 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.

     During the second quarter of fiscal 2015, the Company revised its forecast for its Canadian affiliate which is now projected to show a loss for fiscal 2015, in part due to the impact of the Company's 2014 Performance Improvement Plan described in Note 4 and to foreign exchange losses resulting from large fluctuations in currency conversion rates. Based on the projected cumulative taxable loss for the three fiscal years ending June 30, 2015, as well as the Company's consideration of the weight of positive and negative evidence, commencing with the second quarter of fiscal 2015, the Company has recorded valuation allowances against its Canadian deferred tax assets as a non-cash charge to income tax expense.