Segment Data And Related Information

3 Months Ended

Sep. 30, 2015

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 September 30, 2015, 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 prestige retailers, 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 e-commerce business. This segment also sells Elizabeth Arden products through the Red Door Spa 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 2015 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 net sales and profit (loss) exclude returns and markdowns related to the Company's previously disclosed 2014 Performance Improvement Plan. In addition, segment profit (loss) excludes depreciation and amortization, interest expense, debt extinguishment charges, and consolidation and elimination adjustments and unallocated corporate costs and expenses, which are shown in the table reconciling segment profit (loss) to consolidated (loss) income before income taxes. Included in unallocated corporate costs and expenses are (i) restructuring charges that are related to an announced plan, (ii) restructuring costs for corporate operations, and (iii) costs and expenses related to the 2014 Performance Improvement Plan and the 2016 Business Transformation Program, including returns and markdowns. 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, 2015 and 2014.

(Amounts in thousands)			Three Months Ended
			September 30,			September 30,
			2015			2014
Segment Net Sales:
North America	$		172,196		$	172,359
International			93,755			100,698
Total	$		265,951		$	273,057
Reconciliation:
Segment Net Sales	$		265,951		$	273,057
Less:
Unallocated sales returns and markdowns		-	-			2,679	(2)
Net Sales	$		265,951		$	270,378
Segment Profit (Loss):
North America	$		24,143		$	12,821
International			(13,319	)		(11,463	)
Total	$		10,824		$	1,358
Reconciliation:
Segment Profit	$		10,824		$	1,358
Less:
Depreciation and Amortization			11,070			12,712
Interest Expense, net			7,261			7,756
Consolidation and Elimination Adjustments			1,011			79
Unallocated Corporate Expenses			8,427	(1)		6,092	(3)
(Loss) Income Before Income Taxes	$		(16,945	)	$	(25,281	)

(1) Amounts includes $8.4 million in costs and expenses with respect to the Company's 2016 Business Transformation Program primarily comprised of $3.3 million of inventory costs related to the closing of the Company's Brazil affiliate, as well as changes in certain distribution and customer arrangements, $5.1 million of severance and other employee-related expenses and related transition costs.

(2) Amount represents $2.7 million of returns and markdowns under the Company's 2014 Performance Improvement Plan.

(3) In addition to the returns and markdowns described above in Note 2, amounts for the three months ended September 30, 2014, include $3.4 million in expenses under the 2014 Performance Improvement Plan primarily comprised of severance, other employee-related expenses and related transition costs associated with the reduction in global headcount positions.